Regulations on Norwegian credit institutions' business in another state within the European Economic Area
Date FOR 1996-06-28-678
Affairs Ministry
Published Dept. In 1996 Ranked. 12
Commencement 06/28/1996
Edited
FOR-2014-10-10-1302
Changes
For
Norway
Legal
LOV-1956-12-07-1-§4, LOV-1988-06-10-40-§1-3, LOV-1988-06-10-40-§2a-1, LAW-2009- 06/03/11-section 4, TO-1988-06-10-457, TO-1991-12-06-782 cf. LOV-2015-04-10-17-§23-2
Promulgated
Short Title
Regulations on Norwegian financial institutions in the EEA
Chapter Overview:
Main part
Attachment: List of activities covered by the mutual recognition
Adopted of Finance and Customs Department (now Ministry of Finance) of 28 June 1996 pursuant to the Act on 7 December 1956 no. 1 on the supervision of financial institutions, etc. (Financial Supervision Act) § 4 no. 4 and the Act of 10 June 1988. 40 on Financing Activity and Financial Institutions (Financial Institutions Act) § 1-3 second paragraph and § 2a-1, second paragraph.
Added basis: Law 6 March 2009 No.. 11 on measures against money laundering and financing of terrorism,. (Money Laundering Act) § 4 subsection Delegated Decision of 10 June 1988 no. 457, delegation decision of 6 December 1991 No.. 782.
EEA information: EEA Annex IX paragraphs 15, 16, 20 and 22 (Council Directive 77 / 780 / EEC, Council Directive 83/350 / EEC, Council Directive 86/635 / EEC, Council Directive 89/117 / EEC and Council Directive 89/646 / EEC).
Changes: Amended by regulations September 9, 1996 No.. 895, May 25th, 2005 no. 467, 18 Dec 2009 No.. 1726, 10 October 2014 No.. 1302.
§ 1. Scope The regulation applies the right to commercial banks, savings banks and financial institutions headquartered in Norway, with the permission of and under the supervision of the Norwegian authorities, to establish a branch and provide services in another state within the European Economic Area. The regulations also apply to undertakings which are not credit institutions, cf. Act on 10 July 1988 no. 40 on financing activity and financial institutions § 1-5 no. 3, when the terms of Regulations § 7 are met.
Regulation applies only business mentioned in the annex to the regulation. The annex is treated as part of the regulation.
§ 2. Definitions In this Regulation:
Filial: Established place of business in another state within the European Economic Area.
Host State: State in which the credit institution intends to establish a branch and / or providing services.
§ 3. Establishment of a branch of a credit institution can not without the permission given by the Financial Supervisory Authority establish a branch in another state within the European Economic Area.
Application for a permit shall contain the following information:
1.
State in which the credit institution intends to establish a branch
2.
A business plan, which seeks to specify the business to be operated through the branch, and the branch's organizational structure
3.
Branch's name and address and the names of persons responsible for management of the branch
4.
Size of the credit institution's own funds and capital adequacy.
FSA shall grant permission unless there is reason to doubt that the credit institution's administrative structure or financial situation is good enough, considering the activities that are planned. If the conditions are met, a permit given within three months after the application is received.
FSA shall in such cases by the same deadline to send the information from the credit institution to the host state regulators. FSA shall simultaneously transmit:
-
Confirmation that the planned activities are covered by the credit institution's authorization
-
Information on the deposit guarantee scheme that the branch will be covered by.
Credit institution shall simultaneously be notified of such communication.
FSA shall notify the credit institution of any rejection within three months from its receipt. The refusal may be appealed to the Ministry of Finance in accordance with the Public Administration Act.
Credit institution is obliged to notify the FSA and host state supervisors of any changes in circumstances which are disclosed under the provisions of the second paragraph Nos. 2 and 3 as well as on changes in the deposit guarantee branch is subject. Notification shall be given at least one month before the change is made.
§ 4. Cross-border services A credit institution which intends to provide services in another state within the European Economic Area, shall notify Finanstilsynet about this. The notification requirement also applies if the business will be managed from a branch in another state within the European Economic Area.
Notification shall contain information about the State in which the credit institution or branch of this intends to provide services and which services it will offer.
FSA shall, within one month after receipt of the request submit this to the supervisory authorities of the host state.
§ 5. Language FSA may require that the information to be provided to the FSA in accordance with the regulations shall be translated into the host state language by a certified translator.
§ 6. Exceptions Policy Act of 10 June 1988. 40 on financing activity and financial institutions § 2-11 even § 2-14 and law on 6 March 2009 No.. 11 on measures against money laundering and financing of terrorism,. (Money Laundering Act) does not apply to businesses that target anyone but customers residing in Norway.
§ 7. Corporate owned by one or more credit institutions regulations apply correspondingly to enterprises that are not credit institutions but which perform the activities described in the annex to the regulation, if the following conditions are met:
1)
undertaking owned by one or more credit institutions,
2)
credit institution (s) together own 90 per cent. Or more of the voting rights attached to the shares or interests in the company,
3)
credit institutions have declared that they jointly and severally liable for its liabilities and FSA have agreed that such a declaration is issued
4)
enterprise is subject to consolidated supervision of the credit institution, or with each financial institution, in accordance with what applies to the states covered by the European Economic Area. This particularly applies to the calculation of capital adequacy, control of large exposures to individual customers, and provisions on shareholdings in other companies,
5)
credit institution (s) satisfies the requirements of the home country of prudent management of the company,
6)
credit institution (s) has been authorized as a credit institution in the state whose law firm is subject,
7)
entity has statutes that allow these activities are pursued,
8)
the relevant businesses carried on in the host state exercised in Norway.
In addition to the information mentioned in § 3, second paragraph, an application for branch establishment disclose the size of the subsidiary's capital and the Group's consolidated capital base.
By the transmission of information in accordance with § 3, fourth paragraph, and § 4, third paragraph, the Financial Supervisory Authority enclose a confirmation that the conditions in the first paragraph are met.
§ 8. Implementation These regulations come into force immediately.
Attachment: List of activities covered by the mutual recognition
1.
Receipt of deposits and other repayable funds
2.
Utlånsvirksomhet1
3.
Financial leasing
4.
Payment
5.
Issuing and managing means of payment (credit cards, traveler's checks, bank drafts)
6.
Guarantees and collateral
7.
Transactions for the institution's own account or for customers' bill:
A)
money market instruments (checks, bills, certificates of deposits, etc.)
B)
currency
C)
financial tradable futures and options
D)
currency and interest rate instruments
E)
negotiable securities
8.
Participation in share issues and services in connection with these
9.
Advising enterprises regarding capital structure and business strategy and related issues, advice and services regarding mergers and acquisitions
10.
Monetary Mediation
11.
Portfolio Management & Consulting
12.
Depot Commercial
13.
Credit information
14.
Rental of safe deposit boxes.
-
mortgage,
-
factoring with or without responsibility,
-
financing of commercial transactions (including forfeitering)
