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On June 29, 2026, Denmark's Financial Supervisory Authority (FSA) published new regulations and guidance simplifying recovery plan requirements for smaller and medium-sized credit institutions. The new rules take effect on July 1, 2026. Recovery plans are documents that credit institutions, mortgage credit institutions, ship financing institutions, and investment firms must prepare to demonstrate how they would restore financial stability if facing economic difficulties. The FSA's changes expand the number of institutions eligible to use simplified obligations within their recovery plans and reduce submission frequency from annually to every three years for qualifying institutions. Institutions using simplified obligations will therefore submit their next recovery plan in 2028. Additionally, the FSA raises the threshold for the smallest credit institutions to submit a capital raising plan instead of a full recovery plan from DKK 1 billion to DKK 2 billion in total assets. The FSA will designate annually which credit institutions may apply simplified obligations, with designations to be made as soon as possible after the rules take effect on July 1, 2026. These changes form part of the FSA's national proportionality regime project, which tailors regulatory requirements to institutions' size, complexity, and risk profile where European rules permit. The initiative aims to reduce administrative burdens on smaller, less complex institutions while maintaining financial robustness and consumer protection. The new rules implement the European Commission's delegated regulation (EU) 2019/348 and the Bank Recovery and Resolution Directive (BRRD). REFERENCES: Financial Supervisory Authority (FSA) – https://www.finanstilsynet.dk/