Investing solutions

Danske Bank is offering convenient solutions both for investors who want to manage their investments on their own and for investors who prefer ready-made solutions where professional fund managers manage the investments for them.

Wide scope of investing solutions

Shares

A share is a security that represents a small part of a company. Shareholders may be eligible for dividends and may participate in shareholder meetings.
Danske Bank is offering brokerage service both in connection of the local and in case of foreign stock exchanges.

Bonds

Bonds are effectively loans given to companies or governments. Issuer of the bonds pay usually regular interests on the received loan amount and return the loan on the fixed bond maturity date. Bonds are commonly referred to as fixed-income securities.
You can purchase government or corporate bonds of the Baltic region but also you could look for interesting investment opportunities globally.

Investor advice

  • How to start investing?
    1. Visit the Danske Bank business centre, where our investment adviser will explain to you the procedure and service fees.
    2. Sign an agreement on investment services and open a securities account.
    3. Start trading. Danske Bank acts as an intermediary of securities in most global markets.
    4. Based on your needs, our specialists will recommend an investment method most suitable for you and provide you with advice on investment in securities.
  • Opening of securities account

    In order to trade securities at Danske Bank, You have to open a securities account.

    • For Estonian securities you can open End Investor account in Nasdaq CSD or Danske Bank internal securities account.
    • Foreign securities can be held on Danske Bank internal securities account only. All securities registered in Danske Bank internal securities account are held on nominee accounts in depository or other third party.

    Below is a generic description of the different levels of segregation that are available to the customers of Danske Bank A/S Estonia branch:


    END INVESTOR ACCOUNT

    An end investor account is registered in the name of the customer and is used for the holding of securities for a single customer of the bank.

    Assets held in end investor accounts are protected on the highest level in the event of the bank’s insolvency as the securities on the account belong to the customer and shall not be included in the bankruptcy estate of the bank, nor shall the claims of the creditors of the bank be satisfied on account of such assets.

    As the end investor accounts are registered in the name of the customer, information about beneficial ownership is more transparent and accurate.

    Information about the investors of registered securities is directly available for issuers. Access to up-to-date information about end investors is helpful for the issuers in regard to their investor relations activities, general meetings and voting.

    • In Danske Bank, customers can open end investor accounts in Nasdaq CSD to hold Estonian securities.

    For end investor accounts, additional services are available in Nasdaq CSD:

    • Portfolio transfer
    • Statements issued by the Nasdaq CSD:
      • advice on the opening of a securities account with the Nasdaq CSD by e-mail
      • Annual account statements

    Commission is applicable for opening/closing securities accounts in Nasdaq CSD according to Danske Bank price list.

    Safekeeping and transaction fees are the same for end investor and nominee accounts and do not depend on the securities account segregation level.

    For further information, please find information from valid Danske Bank price list.


    NOMINEE ACCOUNT
    A nominee account is registered in the name of the bank and is used for holding the securities of a single customer or multiple customers of the bank (i.e. excluding the bank’s own holdings). For a nominee account an internal register of beneficial owners is held by the bank.
    With a nominee account, information about the investors is not directly available for issuers and the customer is not able to exercise their rights and obligations as an owner of securities personally. Issuers may ask the bank to disclose information about end investors. This is needed, for example, before general meetings or corporate actions.
    Assets held in a nominee account are protected in the event of the bank’s insolvency as the ownership over the assets as well as assets acquired on account of such assets held in a nominee account belong to the respective customers and shall not be included in the bankruptcy estate of the bank, nor shall the claims of the creditors of the bank be satisfied on account of such assets. Deriving from different insolvency legislation in some jurisdictions, transferring the assets to another service provider, disposing of the securities or exercising other rights might be restricted.

    • Via a nominee account a customer can hold in Danske Bank all securities which Danske Bank offers.

    Opening and closing Danske Bank’s internal securities account is free of charge.

    For safekeeping and transaction fees, there is no difference between an end investor and nominee account opened in Nasdaq CSD.

    For further information, please find information from valid Danske Bank price list.

  • Trading

    Trading with securities can be done through the following channels:
    • online by using eBank
    • by calling to Telephone Bank +372 6 800 800
    • by visiting Danske bank centre

    After completing a purchase of securities, the respective amount of money will be reserved on account related with securities account. On the value date the securities will be transferred to securities account and money debited from current account related with securities account.

    When selling securities, the respective amount of securities will be reserved on securities account on value date the securities will be debited from securities account and money is credited to the current account related with securities account.

    Between the date of making the transaction and the value date you cannot make other transactions with the acquired securities or reserved funds.

    Legal entities who wish to perform transactions involving securities will need to submit to the bank their LEI (Legal Entity Identifier). This code is used globally to identify legal entities. More information about LEI you can find under menu "Important information for investor" in LEI code topic.

  • Policy for social responsibility

    POLICY FOR SOCIAL RESPONSIBILITY
    The Danske Bank Group has introduced a new policy for Socially Responsible Investments – SRI. The policy is to ensure that the Group does not invest customers’ assets in companies that violate internationally recognized standards for human rights, arms, working conditions, environment and anti-corruption.
    The policy applies to the Group’s own products, where the Group manages investments on behalf of customers.

    “We have decided to introduce the SRI policy to make sure that customers can feel comfortable in placing their investments with the Group,” says Niels-Ulrik Mousten, Senior Executive Vice President, Danske Capital.
    The decision to introduce an SRI policy is closely coupled with the Group’s conviction that appropriate behaviour is a precondition for long-term value creation in a company. “Therefore, the SRI policy does not conflict with the Group’s objective of generating the best possible returns for our customers,” says Niels-Ulrik Mousten.

    DIALOGUE WITH COMPANIES
    The Swedish company Ethix SRI Advisors monitors whether the portfolio companies meet the required standards.If a company is accused of involvement in a sustained and severe violation of the guidelines, Ethix will investigate the accusations. Through the entire process Ethix seeks a dialogue with the company and other relevant parties. The dialogue entails an opportunity to hear the companies’ own description of the case and investigate whether the company is taking initiatives to stop the violation and thus prevent any re-occurrence.
    Within the Danske Bank Group an SRI Board has been established. Its members are the CEO’s of Danske Capital, Danica Pension and Danske Invest together with representatives from Corporate Responsibility and the Group’s SRI function. The SRI Board receives the results of Ethix’ analyses and decides whether the securities from a given company are to be excluded or whether the dialogue with the company is to be continued.

    “The dialogue is to clarify whether the company is planning to change its behaviour in respect of the case in question. Depending on the outcome of the dialogue, we decide whether we will sell or retain the investments in the company,” says Niels-Ulrik Mousten.
    Read more about the SRI policy on www.danskebank.com/responsibility

System of insurance of deposits and liabilities to investors

  • System of insurance of deposits and liabilities to investors

    All deposits and securities held at Danske Bank A/S Estonia branch are subject to compulsory insurance in The Guarantee Fund for Depositors and Investors (Danish Kingdom).

  • What is the Guarantee Fund for Depositors and Investors?
    The Guarantee Fund for Depositors and Investors (hereinafter – the fund) means the body established by the act of Parliament of the Kingdom of Denmark. Within certain limits, the fund reimburses losses incurred by clients of Danish banks, mortgage banks or investment companies, where a bank, a mortgage bank or an investment company is subject to compulsorily dissolution. This protection also applies to customer of Danske Bank A/S Estonia branch (hereinafter – the bank) (private individuals and legal entities).
  • How much is reimbursed by the fund?
    Funds
    The fund can pay compensation of up to EUR 100,000 for deposits or funds in the customer's bank account in any currency.

    Securities
    The fund also compensates the loss incurred by an investor if the investor's securities managed, or administered by the bank, or held in an investor securities account are not returned by the bank. The amount of compensation is EUR 20,000 per investor.
  • How is the compensation calculated?
    Funds
    The amount not paid by the due date under the loan agreement or from other financial obligation to the bank is deducted from the total sum of deposits held by the customer at the bank and the balance held in his/her bank accounts. The customer is paid a positive balance of funds up to EUR 100,000.

    Securities
    Generally, suspension of the bank's payments or compulsorily dissolution has no effect on securities, because even in such cases investors usually recover their securities.
    However, sometimes, securities cannot be returned to the investor. In such cases, the fund reimburses the loss because securities were not recovered in the amount of up to EUR 20,000 per investor less any not paid by the due date debts to the bank. However, the compensation cannot exceed the market value of outstanding securities. No claims arising from securities (shares, bonds, etc.) issued by Danske Bank A/S itself or from other securities that are recorded under the own funds of Danske Bank A/S are guaranteed or compensated for on the account of the deposit guarantee scheme of the Guarantee Fund.
  • How can I apply for compensation?

    The Danish Guarantee Scheme compensates customers of Danske Bank A/S Estonia branch for deposits in cooperation with the Estonian Guarantee Fund.

    The Estonian Guarantee Fund pays out deposits of the branch in the name and on the account of the Danish Guarantee Scheme and in accordance with the instructions received from it, presents to customers the information about the procedure and terms for compensating for the deposits and adopts, in the name of the Danish Guarantee Scheme, queries made by depositors of the branch.
    The payment of compensations must have been in general completed within seven (7) working days of the date on which deposits become unavailable, it might be extended if it concerns the payment of compensations for deposits of the branch.

    When you have received the statement, your new bank will help you file a claim with the Guarantee Fund. The Guarantee Fund will pay the deposits to your new bank within seven business days.

    You can contact the Guarantee Fund at this address:
    Garantiformuen (Danish Deposit Guarantee Scheme)
    Sankt Annæ Plads 13, 2. tv.
    DK-1250 København K
    Tel. (+45) 33 14 62 45
    E-mail: gii@gii.dk
    Home page: www.gii.dk

    If you have not received the payment within seven business days, we recommend that you contact the Guarantee Fund as you may need to observe a deadline for claiming payment.


  • Additional information about the Danish Deposit Guarantee Scheme
    Garantiformuen (Danish Deposit Guarantee Scheme)
    Sankt Annæ Plads 13, 2. tv.
    DK-1250 København K
    Tel. (+45) 33 14 62 45
    E-mail: gii@gii.dk
    Home page: www.gii.dk

    Danish Act that regulates guaranteeing of deposits and securities

    An English translation of the Danish Act that regulates the guaranteeing of deposits and securities can be found on the website of the Danish Financial Supervisory Authority that can be accessed at www.finanstilsynet.dk or www.dfsa.dk.

Disclaimer

The value of financial instruments may increase as well as decrease. You assume all risks related to investing in financial instruments. Investing in financial instruments may be profitable as well as unprofitable, so you may not get any financial benefits or even loose a part or whole invested amount. Past performance is not a reliable guide to future performance. Financial instruments in foreign markets are also affected by currency fluctuations, which may determine the value of them either positively or negatively. This information does not constitute investment advice, an offer or a solicitation of an offer to buy, sell, swap or hold a specific financial instrument.

Before investing in a specific financial instrument, we recommend that you familiarize yourself with the prospectus, key investor information document and rules, which you can find at www.danskeinvest.com/estonia.

Any information on the website about investing in financial instruments is promotional information. The information is not intended for distribution to, or use by, any person in any jurisdiction or country where such distribution or use would be unlawful and, specifically, are not intended for distribution to, or use by, any "US Person” within the meaning of the United States Securities Act of 1933, as amended and the United States Securities Exchange Act of 1934, as amended.

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