Background
On 20 November 2025, an amendment bill to the Act on Consumer Loan Businesses was adopted which introduces new registration requirements with the Danish Financial Supervisory Authority (the “FSA”) for certain credit intermediaries. Upon its entry into force, the Act on Consumer Loan Businesses will be renamed the Act on Consumer Loan Businesses and Registration of Credit Intermediaries (the “Act”).
For this purpose, a new public register will be established and credit intermediaries must be registered with the FSA prior to commencing operations.
While the FSA will be responsible for registration, ongoing supervision will be carried out by the Danish Consumer Ombudsman.
Who must register
The registration requirement applies to businesses and individuals acting as “credit intermediaries” within the meaning of the Act.
This covers individuals or companies that do not act as a consumer loan business or notary but, for a fee, carry out one or more of the following activities:
- present or offer credit agreements to consumers;
- assist consumers with preparatory or administrative steps before a credit agreement is concluded; or
- conclude credit agreements on behalf of a consumer loan business.
Importantly, the intermediary must perform more than merely referring or introducing a consumer to a consumer loan business, whether directly or indirectly. To fall within the scope of the registration requirements, the intermediary must therefore play a more active and substantive role in the credit arrangements. No guidance is provided on what constitutes “a more active and substantive role” and that assessment is therefore left to FSA practice (and ultimately the courts).
Exemptions from registration
Certain Danish or EU financial businesses, foreign financial businesses operating on a cross-border basis, as well as certain Danish licensed mortgage credit providers remain exempt from the Act in its entirety and may therefore continue to carry out credit intermediation activities without registration.
Certain smaller businesses acting only incidentally as credit intermediaries are exempt from registration.
The exemption applies to suppliers of goods or services that qualify as micro, small or medium-sized enterprises (SMEs). To qualify as an SME, a business must have fewer than 250 employees and either an annual turnover not exceeding EUR 50 mio. or a balance sheet total not exceeding EUR 43 mio.
In addition, the exemption requires that the business must act as a credit intermediary only on an ancillary basis. This means that credit intermediation is not the main purpose of its trade, business or profession but merely supports its core business activities.
Whether an activity qualifies as ancillary requires a specific assessment based on the preparatory works. Businesses seeking to rely on the exemption should therefore assess both their size and the nature of their credit activities.
Finally, the existing exemption from parts of the Act for payment institutions, e-money institutions and institutions holding a limited payment services license will be narrowed to apply solely to consumer loan activities. Accordingly, where such institutions engage in credit intermediation activities, they will now be subject to the registration requirement with the FSA.
Conditions for registration
Registration is subject to the conditions set out in Section 3a of the Act.
The FSA is obliged to refuse registration if certain requirements are not met. The refusal grounds fall into three main categories:
-
Location requirement
The credit intermediary must be established in Denmark, another EU Member State, or a country with which the EU has concluded an agreement in the financial field. Entities established outside these jurisdictions must first establish a subsidiary within the relevant area in order to qualify for registration.
As mentioned above, certain EU-based financial businesses carrying out credit intermediation activities on a cross-border basis may, however, continue to do so without registration with the FSA as they remain exempt under the Act.
-
Criminal record
Registration may be refused if a member of the company’s governing body or day-to-day management – or, in the case of a sole proprietorship, the owner – has committed criminal offences or breached other relevant legislation in a manner that raises concerns about their fitness to perform their duties.
A conviction will not automatically result in refusal. The FSA must carry out a specific assessment, including whether the offence indicates a risk of future misuse of the position.
-
Professional conduct concerns
Registration may also be refused where a member of management (or the owner) has acted in a manner that raises doubt about their ability to discharge their responsibilities properly, particularly where such conduct may undermine confidence in the financial sector.
According to the preparatory works, this may include serious disorder in the individual’s personal finances (e.g., significant arrears or registration as a bad payer) or repeated involvement in failed or bankrupt businesses.
Penalties for non-compliance
Operating as a credit intermediary without being registered constitutes a criminal offence and is punishable by a fine or imprisonment of up to four months.
The FSA may also revoke a registration where, inter alia, the intermediary:
- obtained registration on the basis of incorrect or misleading information, provided the information was intentionally false and material to the FSA’s decision;
- no longer meets the statutory registration requirements; or
- commits serious or repeated violations of the Danish Money Laundering Act (in Danish: hvidvaskloven), the Danish Credit Agreements Act (in Danish: kreditaftaleloven), the Danish Marketing Practices Act (in Danish: markedsføringsloven), or related legislation.
Entry into force
The Act will enter into force on 20 November 2026.
The FSA will begin processing applications from 20 May 2026. Credit intermediaries already operating may continue their activities without registration until the FSA has decided on their application, provided that the application for registration is submitted no later than 20 November 2026.
Companies currently engaged in credit intermediation should therefore assess as soon as possible whether they fall within the scope of the new rules and prepare the necessary documentation ahead of the application window.
Want to know more?
For more information, please contact Plesner’s team for Banking and Finance.
Read the amendment bill (in Danish)