Law On Payment Systems,

Original Language Title: Lov om betalingssystemer m.v

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Read the untranslated law here: https://lovdata.no/dokument/NL/lov/1999-12-17-95

Law on Payment Systems etc.


Date LOV-1999-12-17-95


Affairs Ministry

Edited

LOV-2015-06-19-65 from 10/01/2015

Published



Commencement 04/14/2000

Changes


Promulgated


Short Title
Payment Systems Act

Chapter Overview:

Chapter 1. Definitions (§§ 1-1 - 1-3)
Chapter 2. Interbank systems (§§ 2-1 - 2-10)
Chapter 3. Systems for payment services (§§ 3- 1 - 3-3)
Chapter 4. Legal protection and security for clearing and settlement agreements (§§ 4-1 - 4-5)
Chapter 5. Access to payment systems (§§ 5-1 - 5-3 )
Chapter 6. Other provisions (§§ 6-1 - 6-4)
Chapter 7. Commencement. Transitional rules. Amendments to other laws (§§ 7-1 - 6-2)

Ref. EEA Agreement Annex IX. 16b (dir 98/26).

Chapter 1. Definitions

§ 1-1. Payment With payment means systems for the transfer of funds with formal and standardized arrangements and common rules for the processing, clearing or settlement of payment transactions. A payment system includes interbank system or payment systems.
Interbank system shall mean a system based on common rules for clearing, settlement and transfer of funds between financial institutions.
As payment systems are calculated based on standard terms for the transfer of funds from or between customer accounts in banks or others that may provide payment services by finansieringsvirksomhetsloven1 § 4b-1 first paragraph when the transfers involve the use of payment cards, numeric codes or other forms of independent user identification issued to an unrestricted.

§ 1-2. Securities settlement systems Securities settlement system shall mean a system based on common rules for clearing, settlement and transfer of financial instruments as mentioned in the Securities Trading Act § 2-2.
Securities settlement systems must have an operator who is responsible for the establishment and operation, and which is organized as mentioned in § 2-4 first paragraph of the Act.

§ 1-3. Other definitions Participant shall mean clearing, settlement bank, a central counterparty, operator of another system and another institution or entity participating in an interbank system or a securities settlement system.
With clearing means an undertaking which carries out netting.
The settlement bank shall mean accounts for participants in an interbank system or a securities settlement system.
Central counterparty shall mean an institution that acts as a party or otherwise guarantees that other participants fulfill its obligations.
Netting shall mean the conversion of orders between two or more participants at a total net liability or net assets.
Settlement shall mean the final transfer of funds or financial instruments between participants in an interbank system or securities settlement systems.
Order shall mean the participant's orders to transfer payments or financial instruments to another participant in the system.
The opening of insolvency proceedings mean time of open debt settlement proceedings under the Act of 8 June 1984 no. 58 relating to debt negotiation and bankruptcy (Bankruptcy Act) § 4 fourth paragraph, the date of opening of bankruptcy under the Bankruptcy Act § 74 first paragraph, or timing of decisions public administration according to law 6 December 1996. 75 on Guarantee schemes for banks and public administration etc. of financial institutions § 4-5.
Payment card shall mean cash, debit or credit card or similar card for the withdrawal or transfer of funds.
With EEA means the European Economic Area.
With interoperable system 'means two or more system where operators have made agreements with each other to conduct of missions across the systems. A scheme that is introduced between the interacting systems, does not constitute a system.

Chapter 2. Interbank systems

§ 2-1. Purpose The purpose of this chapter is to ensure that interbank systems are organized so that financial stability is safeguarded. There will be special emphasis on reducing the risks associated with liquidity or insolvency of participants in such systems.

§ 2-2. Scope The provisions of this chapter apply to the establishment and operation of interbank systems in Norway.
The provisions of this chapter do not apply to Norges Bank.

§ 2-3. Concession An interbank system can not be established or operated without authorization from Norges Bank.
Norges Bank may grant exemptions from the requirement for a permit for systems that have so limited in scope that it is not expected to have an impact on financial stability.

§ 2-4. Terms of the licensing An interbank system shall have an operator who is responsible for establishment and operation. The operator can be one of the participating banks, other companies, independent institution or association.

CEO of the operator's activities must fulfill the necessary requirements for good repute and experience. The same applies to directors.
Agreement between participants in an interbank system shall specify the rights and obligations of the participants shall have towards each other, and indicate the operator.
Norges Bank may issue further requirements for operations, including capital and security requirements the operator, settlement bank or central counterparty.

§ 2-5. Application for license application for a license shall disclose:

A)
owners and participants as well as plan for the organization and operation, including the distribution of tasks between banks and other institutions participating in the system,

B)
the criteria established for participation in the system. Is participation in the system conditional on membership or capital shall be disclosed,

C)
measures to safeguard technical operations, including contingency plans for disruption should the ordinary system is not working

D)
measures to limit the risks in the system arising from illiquidity or insolvency of participants in such systems,

E)
principles of linkage to payment systems and other funds transfers between customer accounts.

The agreement referred to in § 2-4 third paragraph shall accompany the application.

§ 2-6. Changes to agreements and new agreements operator shall notify Norges Bank before making significant changes in terms of ownership, organization, operations, etc. as specified in §§ 2-4 to 2-5.
Changes may be implemented if Norges Bank has not taken another decision within two months after notification.
Norges Bank may issue further rules concerning changes covered by this section, including rules on exemption from notification.

§ 2-7. Access to participate in interbank systems Credit institutions that are authorized to operate in this country has the right to participate in interbank systems and to use these in accordance with the established rates and general business conditions. This does not apply if a license is granted and the agreement for the interbank system stipulates that there should be special conditions for direct or indirect participation in the system.

§ 2-8. Suspension of a participant operator shall suspend a participant in the system if continued participation will be in violation of § 2-1. Before the decision to suspend is made, the matter shall extent possible, to Norges Bank.

§ 2-9. Supervision etc. Norges Bank may require the operator to provide information that Norges Bank deems necessary to ensure that the system is organized and operated in accordance with the provisions set out in or pursuant to this Act.
Norges Bank finds that the system is not organized or operated in accordance with the provisions contained in or pursuant to the law, the Bank can provide the operator with the orders necessary to remedy the situation.
Norges Bank may require the appointment of a new operator if the operator no longer considered capable of conducting business.

§ 2-10. Revocation of license Norges Bank may revoke a permit pursuant to § 2-3 in whole or in part if:

A)
operator has been guilty of gross or repeated violation of the duties imposed by or pursuant to law,

B)
there are other irregularities operator or other circumstances that give reason to fear that the system does not work as specified in § 2-1

C)
operator is no longer engaged in active operations related to the licensed activity.

Chapter 3. Systems for payment services

§ 3-1. Purpose The purpose of this chapter is to ensure that systems for payment services are organized and operated in a way that promotes secure and efficient payment and effective and coordinated execution of payment services.

§ 3-2. Notification requirements shall, without undue delay, be notified to the Financial Supervisory Authority on the establishment and operation of the payment system.
Notification must include information about:

A)
agreements between participating institutions on the transfer or withdrawal of funds,

B)
conditions of affiliation of merchants,

C)
agreements between payment systems,

D)
use of payment cards, numeric codes or other forms of independent user identification to be used for payment.

§ 3-3. General System Systems for payment services should be organized and operated in accordance with the purpose of § 3-1. FSA may issue further rules on the standardization of agreements, conditions, technical aspects, etc. for payment systems.
Do FSA that a system is not organized or operated in accordance with the provisions contained in or pursuant to the law, it may issue the institution that runs the system such orders as are necessary to remedy the situation.


Chapter 4. Legal protection and security for clearing and settlement agreements

§ 4-1. Scope Determination in this chapter apply to interbank systems with authorization pursuant to § 2-3, Norges Bank and securities settlement systems after approval by the Financial Supervisory Authority.
The provisions of this chapter may after approval shall apply to interbank systems and securities settlement systems established in another Member State. Approval will only be given if the system's rules deemed to be appropriate. Approval of interbank systems granted by Norges Bank. Approval for securities settlement systems administered by FSA.
The provisions of this chapter apply only systems with at least three participants, in addition to the operator, any settlement bank, possible central counterparty and eventual clearing house, which has been agreed that Norwegian law shall apply to the system in accordance with § 4-3 and that is notified to the Commission in accordance with § 4-5.
The provisions of §§ 4-2, and third paragraph and 4-4 also applies to Norwegian participants in an interbank system or securities settlement systems that have chosen the law of another Member State for the system as notified to the Commission or the European Commission in accordance with Council Directive 98/26 / EC on settlement finality in payment and securities settlement systems.

§ 4-2. Legal protection for clearing and settlement agreements on clearing and settlement may be applicable to their content even if the insolvency proceedings against a participant in that system, in an interoperable system, or a system administrator for a cooperating system who is not a participant, when the assignment is entered into the system before the opening of insolvency proceedings.
The time when an assignment shall be deemed entered into the system shall be agreed between participants in the system. The same applies to the time when the right to revoke the order no longer. Norges Bank may interbank systems specifying rules for when assignment shall be deemed entered into the system by the first paragraph. FSA may adopt such rules for securities settlement systems.
If the order is entered into the system after the opening of insolvency proceedings under subsection mission carried out during the working day insolvency proceedings be initiated, the first paragraph accordingly if the operator can prove that the operator had or should have had knowledge of the insolvency proceedings was initiated at the time the right to revoke the order lapsed. The system shall, in its rules determine what is meant by working day, and covering the settlement both in the day and at night and include all events during the cycle of the system.
Ministry may issue further provisions, including exemptions from Recovery Act, the use of a participant's disposable funds to complete settlement on the settlement date in connection with the initial of insolvency proceedings against the participant.

§ 4-3. Governing Law Participants may only choose the law of a Member State in which at least one participant is headquartered.
Legislation in the State in which the participants opted for the system under subsection determines the rights and obligations of an insolvent participant as a participant in the system.

§ 4-4. Security Security is faced with a central bank within the EEA, an operator, or a participant in the interbank system or a securities settlement system may not be invalidated by Claims Act § 5-7.
An operator right to security faced another operator in connection with an interoperable system shall not be affected by insolvency proceedings against the receiving operator.
If financial instruments mentioned in the Securities Trading Act § 2-2 are pledged as security under subsection and the right to the financial instruments are recorded in a register, an account or a securities register of a Member State, the law of this country shall determine the rights of the holder of the collateral.

§ 4-5. Notification requirements The operator of interbank systems as mentioned in § 4-1 shall notify Norges Bank about who is participating in the system, and changes in participants. The operator of a securities settlement system as mentioned in § 4-1 shall communicate the same information to the FSA.
Norges Bank shall notify the Commission of systems and operators of the systems covered by this chapter, and shall notify the institution of insolvency proceedings against a participant in such a system.
A participant in the system shall inform any third party who has a justified interest in such information systems in which participants are members and the general rules for the system's operations.

Chapter 5. Access to payment systems


§ 5-1. Scope The provisions of this chapter apply to payment institutions access to participate in payment systems in Norway. The provisions shall apply mutatis mutandis for other payment service providers as referred to in finansieringsvirksomhetsloven1 § 4b-1.
Payment institution shall mean an undertaking authorized to engage in payment services activities in accordance with or pursuant finansieringsvirksomhetsloven1 § 4b-2.
Payment services shall mean activities mentioned in the Financial Contracts § 11.

§ 5-2. Terms of Participation Payment Systems Act. Terms for participation in payment systems shall be objective, non-discriminatory and proportionate, so that the terms do not obstruct access and participation to a greater extent than is necessary to protect itself against specific risks such as settlement risk, operational risk and business risk and to protect the financial and operational stability.
Payment shall not impose payment service providers, users of payment services or other payment systems:

A)
restrictive rules regarding effective participation in other payment systems,

B)
rule which discriminates between payment institutions and other providers of payment services when it comes to the rights, obligations and entitlements, or

C)
restrictions on the basis of institutional status.

§ 5-3. Exceptions The provisions of § 5-2 does not apply

A)
payment covered by Council Directive 98/26 / EC on settlement finality in payment and securities settlement systems,

B)
payment systems composed exclusively of payment service providers within a financial group composed of entities linked by capital where one of the linked entities enjoys effective control over the other linked entities, or

C)
payment systems where a sole payment service provider, as an entity or as a group,

1.
Acts or may act as payment service provider for both the payer and the payee and is exclusively responsible for the management of the system, and

2.
Allowing other payment service providers to participate in the system and the latter have no right to negotiate fees between themselves in relation to the payment system although they may establish their own pricing across payers and payees.

Chapter 6. Other provisions

§ 6-1. Regulations The Ministry may issue further rules concerning:

A)
Norwegian financial participation in foreign payment systems,

B)
clearing, settlement and transfer of funds to and from abroad,

C)
payment systems that are not related to customer accounts in banks and financial institutions,

D)
supplement or delimit the provisions of this Act.

§ 6-2. Confidentiality Employees and officers of an institution covered by this law, to keep confidential any information they receive concerning the business and private affairs, unless otherwise provided by law. The same applies to other persons performing services for the institution.
Confidentiality obligation shall not preclude the Board or anyone authorized by the board to provide other financial institutions with information received in its capacity as operator.

§ 6-3. Penalties and fines employee or employee representative in institutions covered by this Act who willfully or negligently violates the law or regulation or order issued pursuant thereto is punishable by fines or, in particularly aggravating circumstances with imprisonment up to one year, if the situation does not fall under stricter penal provisions.
The limitation period for instituting criminal proceedings is 5 years.
If an order under this Act is not complied with, the Ministry may decide that the person or the institution that will fulfill the order, shall pay a daily fine until the situation is rectified. Any fine imposed is enforceable by execution.

§ 6-4. Application of the Act on Svalbard King issues regulations concerning this Act apply to the Economic Zone and to Svalbard, Jan Mayen and the dependencies, and may lay down special rules taking account of the conditions there.

Chapter 7. Commencement. Transitional rules. Amendments to other laws

§ 7-1. Commencement and transitional provisions This Act comes into force when the King bestemmer.1 Individual provisions may enter into force at different times.
Departementet1 may issue further transitional rules.

§ 6-2. 1Endringer to other Acts From the time the law comes into force the following amendments to other Acts - - -