Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 7

Investor compliance with the laws and regulations in the home countries of their investments should be part of their regulators' due diligence process. They, in turn, should be treated equitably in the home country of their investments especially in respect to their rights to shareholder benefits and concessionary arrangements under double tax agreements.

1.	Do domestic regulators monitor the procedures in place at their locally based cross-border custodians to assure compliance with the laws and regulations of the home countries of their investments?	A country's regulatory body should ideally not only monitor that domestic investors comply with their own local laws, but also make sure that investors follow the rules of regulations of foreign countries if an investor puts his money abroad. If an investor through his Danish bank puts his investments in domestic Danish securities, the securities for protection of the investment have to be kept in custody on individual investor accounts within the depository, which is best as possible in Denmark. If an investor through his Danish bank put his investment in foreign securities, these securities have to be kept in custody best as possible, and nominee accounts are allowed if it is accepted by the investor. As such, the regolatory body assures compliance with the laws and regulations of the home countries of investments.
2.	What are the areas (e.g. benefits, investor compensation) where foreign investors are not treated in the same way as local investors?	Domestic and foreign investors are treated in the same way.
3.	Can sales proceeds and income be repatriated without any restrictions?	Yes.
4.	Are double tax agreements simple to apply, and do foreign investors receive promptly their full entitlement to dividends and interest payments?	There is no withholding tax on interest. Double tax agreements on dividends are simple to apply and relief at source is available for private investors in 12 countries. However, it is not available for foreign institutional investors (banks, brokerage companies, etc.) It may be book-entered on an investor account in the depository, to which country a double-tax agreement has to be fulfilled. The depository calculates payments to the investors. The payment to investors will be drawn from the issuers account held at the Central bank on due date from where such payments are transferred via the investor´s cash account manager to the bank account chosen by the investor.