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On July 24, 2026, Denmark's Official Gazette published a decree on third-party payments and related matters, establishing comprehensive rules governing how investment service providers handle fees, commissions, and benefits received from third parties. The decree applies to a broad range of financial institutions, including credit institutions, mortgage credit institutions, investment firms, investment management companies, alternative investment fund managers, and investment advisers. It implements provisions from the Markets in Financial Instruments Directive (MiFID II) and related European Union regulations, including amendments from Directive (EU) 2024/2811. The regulation establishes strict requirements for discretionary portfolio management and independent investment advice. Companies providing these services must pass through to customers any fees, commissions, or benefits received from third parties as quickly as possible after receipt. For non-independent investment advice and other investment services, firms may accept payments from third parties only if three conditions are met: the payment enhances service quality, it does not create conflicts of interest, and the customer has been informed in advance. The decree permits receipt of minor-value benefits from third parties—such as conference attendance, research materials, and modest hospitality—provided these do not compromise the firm's duty to act fairly and professionally in customers' best interests. Firms must maintain documentation demonstrating compliance, including internal lists of received payments and records showing how payments improve service quality. The regulation introduces detailed requirements for third-party research payments, including provisions for separate research payment accounts, research budgets, and quality assessment criteria. Companies must disclose research costs to customers and manage research budgets based on reasonable assessments of client needs. The decree enters into force on August 4, 2026, repealing the previous regulation from November 26, 2021.

On July 24, 2026, the Executive Order on Third-Party Payments was published in the official gazette, applicable to investment firms and banks authorised to provide investment services. Key points include: A firm that provides discretionary portfolio management or investment advice on an independent basis, that receives fees, commissions, or other payments in cash, must disclose these fees, commissions or other payments to the client as soon as possible after receipt. Benefits in kind of minor value must be reasonable and proportionate and of such a magnitude that they do not give rise to conflicts of interest in relation to the firm's duty to act honestly and professionally with the client's best interests. A research report prepared by an entity or by a third party and used by or distributed to entities, their clients or potential clients, must be fair, clear and not misleading. A firm must establish criteria for assessing the quality of purchased analyses. Non-compliance with the order is punishable by a fine, and companies may be held criminally liable. This order comes into effect on August 4, 2026.

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Denmark's Financial Supervisory Authority Issues Third-Party Payment Regulations for Investment Service Providers

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Denmark Publishes Executive Order on Third-Party Payments in Official Gazette