Regulators

Norwegian Financial Supervisory Authority (FSA)

The Norwegian FSA was established in 1986 to supervise financial companies in Norway.

Organization Profile

The Norwegian Financial Supervisory Authority is a Norwegian government agency responsible for regulating financial companies in Norway in accordance with the Norwegian Parliament, the Norwegian Ministry of Finance and international accounting standards laws and regulations. The agency is located in Oslo and is regulated by the Norwegian Ministry of Finance.
Institutional History
The Norwegian Financial Supervisory Authority was established in 1986 by the merger of the Banking Supervisory Authority, the Brokers Supervisory Authority and the Norwegian Insurance Association.
The companies initially regulated by the Norwegian Financial Supervisory Authority are banks, insurance companies, credit companies, financial companies, pensions, securities companies, stock exchanges, securities registration companies, real estate agencies, debt collection agencies, accountants and auditors.
The Norwegian Financial Supervisory Authority was originally named Kredittilsynet (Credit Supervisory Authority), but changed its name to Finanstilsynet in December 2009.

Licence application

1. Application requirements for financial institutions
(1) When applying for a financial institution license, you must submit the institution's Articles of Association, organizational plan, and operation plan for the first three years after the institution is established. The plan should describe the organization of the primary licensing business and should also state:
1) Ownership and management structure after establishment;
2) Institutional governance and control system;
3) The manner in which the institution obtains funds to meet the business capital requirements in the operating plan;
4) Institutional capital structure, fund adequacy and forecast financial status for each of the first three years;
5) The establishment cost and administrative cost budget of the institution;
6) Annual operating plan for the first three years after the establishment of the institution, including profit and loss statement, balance sheet and cash flow statement;
7) Institutional relationship;
8) The institution sets the financial services to be provided through affiliated operations;
9) Measures taken by the institution to meet the requirements of money laundering laws;
10) Payment institutions and electronic money institutions protect customer assets.
2. License Granting Conditions
(1) The headquarter and registered office of the financial institution are in Norway;
(2) Ownership structure:
The identity of the owner of the institution must be determined, and the owner of the eligible holdings must be determined to be suitable to own such shares and to exercise such powers over the company through the holdings.
Three-quarters of the share capital of the banking or insurance business shall be subscribed in an increase in capital, with no preference given to shareholders or others. Where the articles of incorporation provide that the founders or others have acquired or are about to acquire certain shares, these shares can only be dealt with after the entity in question has published its annual accounts for the first full year of operation.
(3) Minimum start-up capital requirements
1) The share capital and other equity capital (full start-up capital) of banks, mortgage companies and financial companies must be at least EUR 5 million equivalent in NOK.
2) The minimum start-up capital of the electronic money institution shall not be less than 350,000 Euros equivalent to NOK.
3) If the payment institution only provides payment services stipulated in Article 11(1)(d) of the Financial Contract Law, the minimum full-scale start-up capital of the payment institution shall not be less than 20,000 Euros equivalent to NOK;
4) If the payment service under Item 11(1)(e) of the Financial Contract Law is provided, the minimum start-up capital shall not be less than EUR 50,000 equivalent to NOK;
5) If one or more payment services specified in Articles (1)(a) to (1)(c) of the Financial Contract Law are provided, the minimum start-up capital shall not be less than EUR 125,000 equivalent to NOK.
(4) Institutional management requirements
1) The directors, general managers or other actual managers of the institution must have the necessary qualifications and professional experience for their positions;
2) No criminal record.

License Type

1. Bank License
A license to operate as a bank, granting the right to receive deposits and other repayable funds from the public, to extend credit and guarantee own accounts, and to pay. In addition, the license can cover the following types of businesses:
(1) Other financing activities;
(2) Issue electronic money;
(3) Account transactions of banks or customers in the currency and securities markets;
(4) Other banking services.
2. Financial company license
A financial company license may engage in one or more of the following business activities:
(1) Leasing, factoring and other financing activities;
(2) Account business of the company or customer in the money market;
(3) Foreign exchange transactions or other special services.
Financial companies can also obtain licenses as electronic money institutions or payment institutions.
Financial companies may not accept repayable funds from the public.
3. Payment institution license
(1) A payment institution license can obtain payment methods from customers for performing such services.
(2) In some cases, payment institutions can also obtain financial company licenses.
4. Electronic money institution license
(1) An electronic money institution license can issue electronic money, perform payment services, and obtain payment methods from customers for performing such services.
(2) Electronic money institutions can also obtain financial company licenses.

Regulatory Rules

1. Banking Regulations
All banks (and financial companies) are required to perform an annual Internal Capital Adequacy Assessment Process (ICAAP) to determine their actual capital needs. ICAAP must be forward-looking and must take into account business plans, growth and capital market access.
The Norwegian Financial Supervisory Authority reviews the overall risk level and capital requirements (SREP) of financial institutions.
Reporting requirements:
Banks are required to submit annual, semi-annual and quarterly financial reports to the Norwegian Financial Supervisory Authority.
2. Commodity derivatives position limit regulations
On December 20, 2017, the Norwegian Financial Supervisory Authority adopted regulations regarding position limits and economically equivalent over-the-counter contracts for commodity derivatives traded on Norwegian exchanges. The regulation will take effect on January 1, 2018.
The rules reflecting MiFID II and MiFIR are now incorporated into Norwegian regulations, authorizing the Norwegian Financial Supervisory Authority to set position limits on the size of net positions that can be held in commodity derivatives. Position limits are clarified in the approach prescribed in the Norwegian MiFID II and MiFIR Supplementary Rules Regulations.
The regulation of commodity derivatives position limits sets the same limits for illiquid commodity derivatives and sets individual limits for each liquid commodity derivative. The Norwegian Financial Supervisory Authority has drawn up a list of commodity derivatives traded on Norwegian exchanges and has set applicable position limits for each commodity derivative.
To date, the European Securities and Markets Authority (ESMA) has not considered whether the position limits set are in compliance with European Commission Regulation (EU) 2017/591. Therefore, the Norwegian Financial Supervisory Authority may make changes to the position limits following the ESMA review.
3. Commodity derivatives position report
MiFID II Regulations - Commodity Derivatives Position Report
Norwegian trading venues shall provide the Norwegian Financial Supervisory Authority on a daily basis with detailed descriptions of commodity derivatives positions held by owners of the trading venue, including participants and their clients. In addition, investment firms that trade off-exchange should provide the Norwegian Financial Supervisory Authority with daily details of positions in economically equivalent OTC contracts.
After January 2, 2018, the Norwegian Financial Supervisory Authority developed an IT system capable of receiving daily reporting of positions in commodity derivatives from trading venues and investment firms.

Regulatory Inquiries

The first step: Open the official website of the Norwegian Financial Supervisory Authority https://www.finanstilsynet.no/en/, select Finanstilsynet's registry under Registries
Step 2: Enter the company name/regulatory number/registration number to be queried, and then click Search, or select Reports to view the company list.

Step 3: The company details page is as follows:

Regulatory complaints

Complaint process:
1. Complain to the financial institution first, explain the reason for the complaint and the expected purpose of the complaint;
2. Complain to the Appeal Committee again, the complainant should keep the written evidence of the complaint with the financial institution;
3. If you are not satisfied with the result of the complaint handling or have disputes over the handling of the dispute, you can appeal to the court again;

Contact information

Address: Revierstredet 3, P.O. Box 1187 Sentrum, NO-0107 Oslo, Norway
Tel: 47 22 93 98 00
Fax: 47 22 63 02 26
Email: [email protected]

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