2. maj 2017
The Guarantee Fund does not cover deposits belonging to public authorities, cf. § 13 (6) of Act on a Depositor and Investor Guarantee Scheme. Further below, the scope of the term public authorities is described more detailed in relation to the coverage of The Guarantee Fund.
Public authorities are considered to be ministries, regions and municipalities. The closer definition of the term is made on the basis of an assessment of the entity in question on the following criteria:
• If the entity is established on the basis of Private Law as an independent legal entity, this is in favour of it not being a “public authority”.
• If the entity is considered to be a central government, a regional or local authority in relation to risks regarding loans under article 114 or 115 of the Capital Demand Regulation, this is in favour of it being a “public authority”.
• If the entity has an independent fiscal jurisdiction or if its assets are not separated from an entity with fiscal jurisdiction, it is a “public authority”. If the entity is exclusively or mainly financed by taxes, this is in favour of the entity being a public authority.
• If the entity’s primary business cannot be carried out by private individuals, e.g. if the entity unilaterally and binding determines the citizens’ rights and obligations on the basis of public rules, this is in favour of it being a “public authority”. On the other hand, if the entity’s activity essentially is an activity that can be carried out by private individuals, this, in contrast, implies that it is not a public authority.
• If it may be assumed that a public authority will support an entity financially, if it was to become distressed, this is in favour of regarding the authority in question as a public authority.
On the basis of the above criteria, it is the assessment that e.g. public schools, municipal day care institutions and the Danish national church and local church councils usually will be regarded as public authorities in relation to The Guarantee Fund. Deposits belonging to the concerned parties will therefore not be covered by The Guarantee Fund.
On the other hand, self-governing authorities are normally not regarded as public authorities e.g. universities, high schools, business schools, university colleges and self-owned day care centres. Also, as a starting point, publicly owned companies will not be included in the term public authority. Deposits belonging to the parties in question are covered by The Guarantee Fund similar to other depositors in accordance with the regulations under the Act on a Depositor and Investor Guarantee Scheme.
Especially about the Danish national church and local church council
The Danish national church and local church council are regarded as public authorities in relation to the coverage of The Guarantee Fund. All deposits belonging to the Danish national church and local church council are thus not covered by The Guarantee Fund.
Earlier, it has been the opinion that The Guarantee Fund in some specific cases covered separate deposits which came from activities subject to VAT and could not be assigned to tax collected funds or businesses subject to VAT. This practice has now been changed whereafter all deposits belonging to the Danish national church and local church council will be excluded from coverage of the Guarantee Fund.