Which activities are you engaged in?

Financing activity means

1. the granting of credits/loans and supply of guarantees for own account, including financial leasing
2. the intermediation of credits/loans and guarantees, as well as otherwise to participate in the financing of business other that one’s own

Financing activity is not considered to include:

1. The activity of a public institution or fund established for specific credit purposes
2. The activity of a foundation the purpose of which is not to carry on business activity, or the county governor’s management of financial assets under the Guardianship Act (No: vergemålsloven)
3. The granting or credit, or supply of guarantees, to employees of the entity or of an entity in the same group as the lender or guarantor
4. The granting of credit as seller of a good or service, as well as credit to the buyer which by agreement is to be granted by an entity in the same group as the seller, if the entity finances its credit business by loans from a financial institution or loans from an entity forming part of the group, unless the entity granting the seller credit also carries on other financing activity
5. The activity of a financial agent or financial adviser (look under Finance agent and Finance advisor)
6. Isolated instances of financing

Financing activity is regulated by the Financial Institutions Act (Finansforetaksloven) and is defined in section 2-1.

You can find examples of entities engaged in financing activity in Finanstilsynet’s registry:

Banks

Credit institutions

Finance companies

Receiving deposits or other repayable funds:

Receiving deposits from an unrestricted range of depositors is regulated by the Financial Institutions Act and defined in section 2-2. It is normally deemed a deposit if the deposit is made without individual negotiations and where the depositor decides the amount. Interest rates and conditions for repayment are normally the same for all deposits. You can find examples of entities engaged in receiving of deposits in Finanstilsynet’s registry (click here) Receiving means of payments in order to issue electronic money (crypto currency (bitcoins, blockchain etc.), is not deemed to be receiving deposits from an unrestricted range of depositors. The same applies to means of payment received by payment institutions or electronic money institutions in connection with payment services assignments. [Read FAQ about e-money] Borrowings from the general public in the form of repayable funds other than deposits, are normally raised as bonds and other comparable securities such as negotiable certificates of deposit providing with the purpose to finance the undertaking’s own financing activity. You can find examples of entities engaged in receiving other repayable funds in Finanstilsynets registry (click here)

Payment services:

The offering of payment services are regulated by the Financial Institutions Act and defined in the Financial Contracts Act section 11. The following services constitute payment services:

1. Services enabling cash to be placed on and cash withdrawals from a payment account as well as all the transactions required for operating a payment account
2. Execution of payment transactions, including
   1. transfers of funds on a payment account or covered by a credit line,
   2. direct debits, including one-off direct debits,
   3. payment transactions through a payment card or a similar device, or
   4. credit transfers, including standing payment orders
3. Issuing of payment instruments and acquiring of transactions where such payment instruments are used
4. Money transfer, i.e. payment service where funds are received from a payer, without any payment accounts being created in the name of the payer or the payee, for the sole purpose of transferring a corresponding amount to a payee or to another payment service provider acting on behalf of the payee, and/or where such funds are received on behalf of and made available to the payee
5. Execution of payment transactions where the consent of the payer to execute the transaction is given by means of any telecommunication, digital or IT device and the payment is made to the telecommunication, IT system or network operator, acting only as an intermediary between the payment service user and the supplier of the goods and services

Additionally, the following services constitute payment services according to the Regulation on Payment Services section 4:

1. Payment initiation services
2. Account information services

You can find examples of entities providing payment services in Finanstilsynet’s registry (click here):

The regulation of payment services do not apply to the following services:

1. payment transactions made exclusively in cash directly from the payer to the payee, without any intermediary
2. payment transactions from the payer to the payee through a commercial agent authorised to negotiate or conclude the sale or purchase of goods or services on behalf of either the payer or the payee
3. professional physical monetary transport
4. payment transactions consisting of the non-professional cash collection and delivery within the framework of a non-profit or charitable activity
5. cash withdrawal in connection with purchase of goods or services
6. money exchange business (cash-to-cash operations) where the funds are not held on a payment account
7. payment transactions based on paper cheques, paper-based drafts, paper-based vouchers, paper-based traveller’s cheques or paper-based postal money orders
8. payment transactions carried out within a payment or securities settlement system between settlement agents, central counterparties, clearing houses and/or central banks and other participants of the system, and other payment service providers
9. payment transactions related to securities asset servicing, including dividends, income or other distributions, or redemption or sale, carried out by persons referred to in point (h) or by investment firms, credit institutions, collective investment institutions or asset management companies providing investment services and any other entities allowed to have the custody of financial instruments;
10. services provided by technical service providers, which support the provision of payment services, without them entering at any time into possession of the funds to be transferred, with an exemption for payment initiation services and account information services
11. services based on specific payment instruments that can be used only in a limited way, and which
    1. allows the holder to acquire goods or services only in the premises of the issuer or within a limited network of service providers under a commercial agreement directly with a professional issuer, or
    2. can be used only to acquire a very limited range of goods or services, or
    3. can be used only in one EEA state to acquire specific goods or services from suppliers having an agreement with the issuer of the payment instrument. The instruments shall be regulated by a public authority and issued at the request of an undertaking or a public authority for specific tax or social purposes.
12. payment transactions offered by a provider of electronic communications networks or electronic communications services to a subscriber as an additional service, if
    1. the payment transaction concern the purchase of digital content and voice-based services, which is charged to the phone bill/the bill related to the main service, regardless of the device used for the purchase, or
    2. the payment transaction is related to charity or purchase of tickets, and is performed via an electronic device and charged to the bill related to the main service. The exemption is only applicable where the value of any single payment transaction does not exceed an amount in Norwegian kroner equivalent to EUR 50 and the total value of the payment transactions do not exceed an amount in Norwegian kroner equivalent to EUR 300 per month.
13. payment transactions carried out between payment service providers, their agents or branches for their own account
14. payment transactions between a parent institution and its subsidiary or between subsidiaries of the same parent institution, without any intermediary intervention by a payment service provider other than an institution belonging to the same group
15. services to withdraw cash by means of automated teller machines acting on behalf of one or more card issuers, provided that the service provider
    1. is not a party to the framework contract with the customer withdrawing money from a payment account and
    2. does not conduct other payment services

Issue of electronic money:

Electronic money means an electronically stored monetary value, represented by a claim on the issuer that is issued on receipt of funds with the purpose of carrying out payment transactions, and that is recognised as means of payment by entities other than the issuer. You can find examples of entities issuing electronic money in Finanstilsynet’s registry (click here): The following is not deemed electronic money:

• electronically stored monetary value used to carry out payment transactions executed by means of telecommunications- digital- or IT device, where the goods and service purchased are delivered to and are to be used through a telecommunication, digital or IT device, provided that the telecommunication, digital or IT operator does not act only as an intermediary between the customer/payment service user and the supplier of goods or services
• monetary value which is stored on a payment instrument which may be used to acquire goods or services only in the premises of the supplier or within a limited network of service providers or for a limited range of goods and services

Issue of electronic money is regulated by the Financial Institutions Act and defined in section 2-4.

Foreign exchange activity:

Foreign exchange activity is deemed to be activity consisting of foreign exchange transactions, i.e. purchase and sale of foreign currencies. Foreign exchange activity is regulated by the Financial Institutions Act and defined in section 2-5.

The following are deemed to be insurance business:

1. life insurance: insurance against death and disability risk and insurance in the form of provision of a guaranteed return
2. non-life insurance: insurance against damage to or loss of property, rights or other claims, insurance against liability for damages or costs, as well as accident insurance, sickness insurance and other personal insurance that is not life insurance
3. credit insurance: insurance against the risks of incorrect settlement of claims, customer credit insurance and suretyship insurance
4. reinsurance: accepting risks ceded by insurance institutions

Insurance activity is regulated by the Financial Institutions Act and defined in section 2-6. You can find examples of entities engaged in insurance activity in Finanstilsynet’s registry: Non-life insurance companies Life insurance companies

Investment services:

The following are considered as investment services pursuant to the Securities Trading Act section 2-1:

1. reception and transmission, on behalf of clients, of orders in relation to financial instruments
2. execution of orders on behalf of clients, i.e. acting to conclude agreements to buy or sell one or more financial instruments on behalf of clients, including the conclusion of agreements to sell financial instruments issued by an investment firm or a credit institution at the moment of their issuance
3. dealing in financial instruments on own account
4. active management, i.e. discretionary management of investors’ portfolios of financial instruments on a client-by-client basis and in accordance with investors’ mandates
5. investment advice, i.e. the provision of personal recommendations to a client, either upon its request or at the initiative of the investment firm, in respect of one or more transactions relating to financial instruments
6. underwriting of issues of financial instruments or placing of financial instruments on a firm commitment basis
7. placing of Financial instruments without a firm commitment basis
8. operation of a multilateral trading facility (MTF)
9. operation of an organised trading facility (OTF)

Investment services relates to financial instruments. Financial instruments means transferable securities, such as shares and comparable securities, bonds and other debt instruments, units in collective investment funds, money market instruments, derivatives and emission allowances. The definition of financial instruments appears from the Securities Trading Act section 2-2, cf. section 2-4. You can find examples of entities providing investment services in Finanstilsynet’s registry here (Finanstilsynet.no)

Exemptions

According to the Securities Trading Act section 9-2, the following activities do not require a license:

1. Providing investment services in an incidental manner in the course of other professional activity regulated by law or by the profession itself
2. Providing investment services only to companies within the same group
3. Providing investment services which only involve administration of employee-participation schemes
4. Providing investment services only as mentioned in nos. 2 and 3
5. Providing investment advice only in the course of providing another professional activity, provided that the provision of such advice is not specifically remunerated
6. Trading on own account in financial instruments, except commodity derivatives, emission allowances or derivatives thereof, and not providing any other investment services or performing any other investment activities. A license is nevertheless required if the entity
   1. 1. is a market maker,
      2. is member of or participant in a regulated market or an MTF or have direct electronic access to a trading venue, unless it is a non-financial entity performing transactions on a trading venue which in an objectively measureable way reduces risk directly related to the business activity or the liquidity of the entity or of entities in the same group,
      3. applies a high-frequency algorithmic trading technique, or
      4. deals on own account when executing client orders.
7. a) Trading on own account, including market making, in commodity derivatives, emission allowances or derivatives thereof, except persons dealing on own account when executing client orders, or b) providing investment services, except trading of own account, in commodity derivatives, emission allowances or derivatives thereof, to the customers or suppliers of his main business, provided that
   1. in each of those cases individually and on an aggregate basis, this is an ancillary activity to their main business, when considered on a group basis, and that main business is not the provision of investment services within the meaning of this Directive or banking activities under Directive 2013/36/EU, or acting as a market-maker in relation to commodity derivatives,
   2. those persons do not apply a high-frequency algorithmic trading technique, and
   3. those persons notify annually Finanstilsynet that they make use of this exemption, and upon request report to Finanstilsynet the basis on which they consider that their activity under a) and b) is ancillary to their main business.
8. Transmission system operators as defined in Article 2(4) of Directive 2009/72/EC or Article 2(4) of Directive 2009/73/EC when carrying out their tasks, and persons acting as service providers on their behalf to carry out their tasks, under those Directives, under Regulation (EC) No 714/2009, under Regulation (EC) No 715/2009, or under network codes or guidelines adopted pursuant to those Regulations, and any operator or administrator of an energy balancing mechanism, pipeline network or system to keep in balance the supplies and uses of energy. That exemption shall apply to persons engaged in the activities set out in this point only where they perform investment activities or provide investment services relating to commodity derivatives in order to carry out those activities. That exemption shall not apply with regard to the operation of a secondary market, including a platform for secondary trading in financial transmission rights.
9. Operators with compliance obligations under the Greenhouse Gas Emission Trading Act, who do not provide any investment services or perform any investment activities other than dealing on own account in emission allowances, unless those persons execute client orders or apply a high-frequency algorithmic trading technique.
10. Solely providing services to clients who assume a total investment commitment of at least the equivalent of NOK 5,000,000, or to professional Clients.

The provisions in the Securities Trading Act section 9-23 on algorithmic trading, section 9-24 on Direct Electronic Access and section 9-25 on clearing members do nevertheless apply to members or participants on a regulated market or an MTF which is comprised by the exemptions in No. 7 or 9.

Fund management:

Securities funds management

Securities funds management comprises collective portfolio management, administration and marketing, including sale of securities funds. A securities fund is an independent pool of assets which has arisen through capital contributions from an undefined range of persons against the issuance of units in the fund and which consists essentially of financial instruments and/or deposits in a credit institution. Types of securities funds:

• UCITS: securities fund which is compliant with the rules of the Securities Funds Act chapter 6 regarding investment of the securities fund’s assets or equivalent provisions of Directive 2009/65/EC and which is established in an EEA state
• Domestic fund: a securities fund which is compliant with the rules of the Securities Funds Act chapter 7, which means that the fund may depart from some of the provisions applicable to UCITS
• Specialised fund: a securities fund which is compliant with the rules of section 7-2 to 7-7 of the Securities Funds Act, which means that the funds are designated special funds in their adopted rules and may depart from some of the provisions applicable to UCITS

The definitions related to securities funds are included in the Securities Funds Act section 1-2. You can find examples of entities managing securities funds in Finanstilsynet’s registry (click here):

Alternative investment funds management

Management of alternative investment funds means portfolio management and risk management of alternative investment funds (AIF). An AIF is a collective investment institution that is not a UCITS and which raises capital from a number of investors with a view to investing capital for the benefit of those investors in accordance with a defined investment policy. Management of AIFs is regulated by the Act on the Management of Alternative Investment Funds and defined in section 1-2. You can find examples of entities managing AIFs in Finanstilsynet’s registry (click here)

Insurance mediation:

Insurance mediation means commercial activities that consist of presenting, proposing or carrying out other preparatory work in connection with the conclusion of insurance contracts, or of concluding such contracts, or of assisting in the administration and performance of such contracts, particularly in the event of a claim. Insurance mediation is regulated by the Insurance Mediation Act. There are two types of insurance mediation:

• Insurance brokering
• Insurance agent activities

Insurance brokering

Insurance brokering means insurance mediation activities that consist of

• providing the customer with advice on the basis of an analysis of a large number of insurance solutions available on the market as possible, or
• activities that consist of presenting insurance solutions from one or more insurance undertakings to the customer

Both alternatives are without a distinct contract having been signed with the insurance undertakings concerning this. You can find examples of entities engaged in insurance brokering in Finanstilsynet’s registry here

Insurance agent activities

Insurance agent activities mean insurance mediation activities that consist of offering insurance products for and behalf of one or more insurance undertakings. You can find examples of insurance agents in Finanstilsynet’s registry here

Intermediation of loans:

Intermediation of loans means the activities as a loan intermediary between a lender and a borrower. The lender is typically a financial institution, but may also be other undertakings or persons. You can find examples of entities engaged in intermediation of loans in Finanstilsynet’s registry here

Peer-to-peer lending:

There is not specific definition or regulation of peer-to-peer lending in Norwegian law. The provision of services related to peer-to-peer lending may normally consist of any of the following:

• Intermediation of loans (pure intermediary activities)

If the activities are limited to connecting lenders and borrowers, without being party to the contract between the lender and borrower, it will normally be deemed intermediation of loans [link].

• Borrower or lending collectives involving risk assessments as in institution based lending

In these cases the intermediary may also totally or partially undertake the risk of loss or other liability that may arise as a consequence of the lending activity and/or make the decision to approve a loan. Such activities are normally considered financing activity [link].

Activities as a finance agent means that you act on the basis of an agreement with a bank or financing company regarding assignments related to contracts concerning deposits, loans and/or guarantees.

Financial adviser:

Activities as financial adviser may involve assignments for customers regarding deposits, loans and/or guarantees. If the advice relates to financial instruments, the activities are considered investment advice pursuant to the Securities Trading Act (link til Investment advice).

There is no common definition of marketing in the financial legislation, but generally it will involve offering of financial services or products or invitations/encouragement to acquire the products and services. The regulation of marketing depends on the products or services you are marketing. Financial instruments (link) Marketing of financial instruments does not in itself require a license. You should however be aware of the distinction between marketing and reception and transmission of orders of financial instruments as well as the distinction between marketing and providing investment advice, as both activities requires a License to provide Investment services. Securities Funds (link) Marketing of securities funds is deemed as inviting or encouraging the acquisition of rights in a securities fund. Only an invitation or encouragement intended for or particularly likely to have effect in Norway, is deemed to be marketing. Alternative investment funds (link) Marketing of alternative investment funds is deemed a direct or indirect offering or placement of units or shares at the initiative of or on behalf of the manager of the alternative investment fund. Deposits, loans and guarantees Marketing of deposits, loans and guarantees is regulated by the Financial Institutions Act and the Financial Contracts Act, and would normally require that you are either

• a bank (link), mortgage company (link) or financing company (link) licensed to provide the relevant product, or
• a financial agent representing a bank or other financial institution