Which activities are you engaged in?
Financing activity means
- the granting of credits/loans and supply of guarantees for own account, including financial leasing
- 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:
- The activity of a public institution or fund established for specific credit purposes
- 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)
- 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
- 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
- The activity of a financial agent or financial adviser (look under Finance agent and Finance advisor)
- 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:
The license you need:
According to the Financial Institutions Act section 2-1, financing activity may only be carried out by banks, mortgage companies and financing companies licensed under the Financial Institutions Act. Financing activity may also be carried out by foreign credit institutions entitled under this Act to carry on such business in Norway.
Banking license
According to the Financial Institutions Act section 2-7, a license to operate as a bank confers the right to receive deposits and other repayable funds from the general public, and to grant credit and to furnish guarantees for own account and to provide payment services. The license may also comprise the following types of business:
- Other financing activity
- Issue of electronic money
- Transactions for own account or customers’ account in the money, currency and securities market
- Other banking services
Mortgage company license
According to the Financial Institutions Act section 2-8, a license to operate as a mortgage company confers the right to receive repayable funds other than deposits from the general public, and to grant credit and to furnish guarantees for own account. The license may also comprise the following types of business:
- Other financing activity
- Transactions for own account in the money, currency and securities market
- Issue of electronic money
- Payment services
- Other specific services
License as financing company
According to the Financial Institutions Act section 2-9, the license may cover one or more of the following activities:
- Leasing, factoring and other financing activity
- Transactions for own account or customers’ account in the money or currency market
- Foreign exchange transaction or other specific services
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)
The license you need:
According to the Financial Institutions Act section 2-2, receiving deposits from the general public is a licensed activity which may only be carried on by banks [link til banking license] that are licensed to accept deposits under the Financial Institutions Act and by foreign credit institutions that are entitled to accept deposits in Norway. If you are receiving other repayable funds and are engaged in financing activities (link), it is required with either a banking license (link) or a license as a mortgage company (link).
Contact Selmer or IKT-Norge for assistancePayment 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:
- 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
- Execution of payment transactions, including
- transfers of funds on a payment account or covered by a credit line,
- direct debits, including one-off direct debits,
- payment transactions through a payment card or a similar device, or
- credit transfers, including standing payment orders
- Issuing of payment instruments and acquiring of transactions where such payment instruments are used
- 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
- 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:
- Payment initiation services
- 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:
- payment transactions made exclusively in cash directly from the payer to the payee, without any intermediary
- 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
- professional physical monetary transport
- payment transactions consisting of the non-professional cash collection and delivery within the framework of a non-profit or charitable activity
- cash withdrawal in connection with purchase of goods or services
- money exchange business (cash-to-cash operations) where the funds are not held on a payment account
- payment transactions based on paper cheques, paper-based drafts, paper-based vouchers, paper-based traveller’s cheques or paper-based postal money orders
- 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
- 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;
- 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
- services based on specific payment instruments that can be used only in a limited way, and which
- 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
- can be used only to acquire a very limited range of goods or services, or
- 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.
- payment transactions offered by a provider of electronic communications networks or electronic communications services to a subscriber as an additional service, if
- 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
- 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.
- payment transactions carried out between payment service providers, their agents or branches for their own account
- 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
- services to withdraw cash by means of automated teller machines acting on behalf of one or more card issuers, provided that the service provider
- is not a party to the framework contract with the customer withdrawing money from a payment account and
- does not conduct other payment services
The license you need:
According to the Financial Institutions Act section 2-3, payment services may only be provided by banks, mortgage companies, payment institutions, electronic money institutions and account information providers, and by financing Companies licensed to engage in such activities in Norway pursuant to the Financial Institutions Act. Payment services may also be provided by foreign credit institutions, payment institutions, electronic money institutions and account information providers entitled to carry on such business in Norway.
There are three types of licenses available for payment services institutions:
Ordinary license as a payment institution
According to the Financial Institutions Act section 2-10, a license to provide payment services confers the right to carry out payment services and receive means of payment from customers to use for the execution of such services. The license may be limited to cover one or several of the payment services in the Financial Contract Act section 11. A license to provide payment services, also covers the following services, unless otherwise stipulated in the license:
- Foreign exchange services in connection with money remittance to/from abroad
- Granting of credit within credit limits in connection with execution of assignment on payment transfers provided that
- the credit is not granted by means of payment received in order to execute payment transfers and
- it is a short term credit and shall be repayable within 12 months at the latest
A payment institution may also be granted a license to engage in activities a financing company on certain conditions.
License as account information provider
According to the Financial Institutions Act section 2-10a, a license as an account information provider confers the right to provide account information services. With a license limited only to account information services, the service provider is exempted from several requirements in the Financial Institutions Act and the Financial Institutions Regulations, i.a. the requirement to start-up capital and the ongoing capital requirements.
Limited license for money remittance
According to the Financial Institutions Act section 2-10 fourth paragraph, it is possible to apply for a limited license to carry out money remittance, with exemption from several of the requirements in the Financial Institutions Act and the Financial Institutions Regulations. It is i.a. a condition that the aggregate amount of payment transactions carried out by the business, shall not, as an average over the 12 preceding months, exceed an amount of NOK 5 million per month.
Agent for payment institutions
Acting as agent for payment institutions does not require a license, but the activities must be based on an agreement with the payment institution and the payment institution must notify Finanstilsynet.
Contact Selmer or IKT-Norge for assistanceIssue 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.
The license you need:
According to the Financial Institutions Act section 2-4, electronic money may only be issued by banks (link) mortgage companies (link) and electronic money institutions, as well as by financing companies (link) licensed to engage in such activity in Norway under the Financial Institutions Act. Electronic money may also be issued by foreign credit institutions and electronic money institutions entitled to carry on such business in Norway. There are two types of licenses available for electronic money institutions: Ordinary license as an electronic money institution According to the Financial Institutions Act section 2-11, a license to operate as an electronic money institution confers the right to issue electronic money and carry out payment services, and to receive means of payment from customers to use for the execution of such services. The license may be limited to cover one or several of the payment services in the Financial Contract Act section 11[link til avsnitt om payment services]. An electronic money institution may also be granted a license engage in activities a financing company (link) on certain conditions. Limited license According to the Financial Institutions Regulations section 2-9, it is possible to apply for a limited license to issue electronic money, with exemption from several of the requirements in the Financial Institutions Act and the Financial Institutions Regulations. It is i.a. conditions that
- the maximum value that may be electronically stored is an amount in NOK corresponding to EUR 150
- the total outstanding debt related to electronic money shall in average not exceed an amount in NOK corresponding to EUR 5 million
Agent for electronic money institutions Acting as agent for electronic money institutions does not require a license, but the activities must be based on an agreement with the electronic money institution and the electronic money institution must notify Finanstilsynet.
Contact Selmer or IKT-Norge for assistanceForeign 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 license you need:
According to the Financial Institutions Act section 2-5, foreign exchange business may only be carried out by banks (link) and by payment institutions (link), electronic money institutions (link) and financing companies (link) which is licensed to engage in such activities under the Financial Institutions Act. Foreign exchange business may also be carried on by foreign credit institutions, payment institutions and electronic money institutions that are entitled to carry on such business in Norway.
Contact Selmer or IKT-Norge for assistanceThe following are deemed to be insurance business:
- life insurance: insurance against death and disability risk and insurance in the form of provision of a guaranteed return
- 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
- credit insurance: insurance against the risks of incorrect settlement of claims, customer credit insurance and suretyship insurance
- 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
The license you need:
According to the Financial Institutions Act section 2-6, insurance activities may only be carried on by insurance undertakings and pension funds licensed to engage in such activities under the Financial Institutions Act and by foreign insurance undertakings and pension undertakings that are entitled to carry on insurance business in Norway. According to the Financial Institutions Act section 2-12, an insurance undertaking may be granted a license to engage in activities as one of the following:
- Life-insurance undertaking
- Non-life insurance undertaking
- Credit insurance undertaking
- Reinsurance undertaking
The license may cover one or more of the insurance classes or part of an insurance class. The relevant insurance classes appear from the Financial Institution Regulations chapter 2, part III. Ad 1) According to the Financial Institutions Act section 2-13, a license to carry on activities as a life insurance undertaking confers the right to underwrite life insurances and other personal insurances specified in the license. A life insurance undertaking may as a limited part of its business, underwrite reinsurance within the classes covered by its license. Ad 2) According to the Financial Institutions Act section 2-14, a license to carry on activities as a life non-insurance undertaking confers the right to underwrite non-life insurances. Undertakings licensed to underwrite personal insurances which is not life insurance, may unless otherwise prescribed in the license, also underwrite life insurances in the form of pure risk insurance which under the agreement has a maximum duration of one year and confers the right to compensation of a lump sum, or which fulfils other product requirements laid down in regulations. A non-life insurance undertaking may as a limited part of its business, underwrite reinsurance within the classes covered by its license. Ad 3) According to the Financial Institutions Act section 2-15, a license to carry on activities as a credit insurance undertaking confers the right to underwrite credit insurance and reinsurance in the credit insurance area.
Contact Selmer or IKT-Norge for assistanceInvestment services:
The following are considered as investment services pursuant to the Securities Trading Act section 2-1:
- reception and transmission, on behalf of clients, of orders in relation to financial instruments
- 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
- dealing in financial instruments on own account
- active management, i.e. discretionary management of investors’ portfolios of financial instruments on a client-by-client basis and in accordance with investors’ mandates
- 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
- underwriting of issues of financial instruments or placing of financial instruments on a firm commitment basis
- placing of Financial instruments without a firm commitment basis
- operation of a multilateral trading facility (MTF)
- 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:
- Providing investment services in an incidental manner in the course of other professional activity regulated by law or by the profession itself
- Providing investment services only to companies within the same group
- Providing investment services which only involve administration of employee-participation schemes
- Providing investment services only as mentioned in nos. 2 and 3
- Providing investment advice only in the course of providing another professional activity, provided that the provision of such advice is not specifically remunerated
- 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
-
- is a market maker,
- 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,
- applies a high-frequency algorithmic trading technique, or
- deals on own account when executing client orders.
-
- 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
- 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,
- those persons do not apply a high-frequency algorithmic trading technique, and
- 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.
- 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.
- 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.
- 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.
The license you need:
License to provide investment services
According to the Securities Trading Act section 9-1, investment services may only be provided on a professional basis by investment firms and by banks licensed to provide such services. Investment services may also be provided by foreign investment firms and credit institutions licensed to engage in such activities in Norway. The license may cover one or more of the investment services as well as one or more of the following ancillary services:
- Safekeeping and administration of financial instruments for the account of clients, including custodianship and related services, such as cash/collateral management, excluding maintaining securities accounts under section A No.2) of annex to Regulation (EU) 909/2014
- Granting credits or loans to an investor who carry out a transaction in one or more financial instruments, where the firm granting the credit or loan is involved in the transaction
- Advice to institutions on capital structure, industrial strategy and related matters and advice and services relating to mergers and the purchase of institutions
- Foreign exchange services when these are connected to the provision of investment services
- Preparation and provision of investment recommendations, financial analyses or other forms of general recommendation relating to transactions in financial instruments
- Services related to underwriting
- Services related to the underlying of commodity derivatives and derivatives where these services are connected to the provision of investment or ancillary services
Registration as tied agent
According to the Securities trading Act section 10-22, an investment firm may appoint tied agents for the purpose of promoting its services, soliciting business or receiving orders from clients and transmitting them, placing financial instruments and providing advice in respect of such financial instruments and services offered by that investment firm, provided the investment firm is itself authorised to provide such services. The activity of tied agents does not require authorisation under section 9-1. A tied agent may act on behalf of only one investment firm. The investment firm is responsible for all actions of a tied agent acting on behalf of the firm and shall when it appoints a tied agent ensure that it remains in compliance with its obligations under the Securities Trading Act.
Contact Selmer or IKT-Norge for assistanceFund 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)
The license you need:
If you are managing securities funds
Securities fund management may be provided by securities funds management companies with a license pursuant to the Securities Funds Act section 2-1. Securities Fund Management may also be provided by foreign management companies that are entitled to carry on such business in Norway. The license may also cover the investment service active management as well as the following additional services:
- investment advice
- safekeeping and management of fund units
If you are managing alternative investment funds
Management of AIFs is regulated by the Act on the Management of Alternative Investment Funds and management on a commercial basis requires a license pursuant to section 2-2 or registration pursuant to section 1-4. Alternative investment fund management may also be provided by foreign management companies that are entitled to carry on such business in Norway. Registration requirement There is a requirement of registration with Finanstilsynet for managers that manages AIFs whose assets under management in total do not exceed an amount equivalent in Norwegian kroner to:
- EUR 500 million when the portfolios consist of AIFs that are unleveraged and have no redemption rights exercisable during a period of 5 years following the date of initial investment in each AIF, or
- EUR 100 million for other types of AIF
Licensing requirement For managers of other AIFs, a license is required. AIFs shall be managed by an external manager designated by the AIF or on behalf of the AIF, or be managed internally. The license shall cover both portfolio management and risk management. An external manager may also engage in activities of administration and marketing of an AIF that it manages, as well as services related to assets of the AIF. An external manager with a license pursuant to the Securities Funds Act may also engage in management of securities funds. The license of an external manager may also cover the investment service active management, as well as the following additional services:
- reception and transmission of orders on behalf of clients in relation to one or more financial instruments
- investment advice
- safe-keeping and administration in relation to shares or units
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
The license you need:
If you are engaged in insurance brokerage
Insurance brokering requires a license from Finanstilsynet pursuant to the Insurance Mediation Act section 2-1.
If you are an insurance agent
Acting as an insurance agent does not require a license. Insurance agents shall be registered with either the insurance undertaking to which the agent has entered into a contract or with Finanstilsynet. Agents for Norwegian insurance undertakings shall be registered in the agent register of the insurance undertaking, while agents representing foreign insurance undertakings shall be registered with Finanstilsynet.
Contact Selmer or IKT-Norge for assistanceIntermediation 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
According to the Financial Institutions Act section 2-18, undertakings engaged in the intermediation of loans or guarantees for loans on a commercial basis, may engage in such activities after notification to Finanstilsynet. The loan intermediary shall protect borrowers’ and lenders’ interests in a satisfactory manner and provide certain information to the parties as further described in the Financial Institutions Act section 2-18. Furthermore, intermediation of loans, is comprised by finance broker assignments in the Financial Contracts Act chapter 5. A loan intermediary may not be involved in the settlement without a license as a payment institution (link).
Contact Selmer or IKT-Norge for assistancePeer-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].
Intermediation of loans requires registrationas a loan intermediary with Finanstilsynet (link). If you are engaged in financing activities, you need a license as a financing company (link).
Contact Selmer or IKT-Norge for assistanceActivities 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.
Activities as finance agent do not require a license or registration with Finanstilsynet. A finance agent acts on behalf of the institution to which the agent has entered into an agreement with. The activities as finance agent are regulated by the Financial Contracts Act chapter 6.
Contact Selmer or IKT-Norge for assistanceFinancial 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).
Activities as financial adviser related to deposits, loans and/or guarantees do not require a licence or registration with Finanstilsynet. Providing investment advice related to financial instruments requires a license as an investment firm. (link)
Contact Selmer or IKT-Norge for assistanceThere 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
The license you need: If you are marketing securities funds In addition to management companies, the sale of units in securities funds may be undertaken by credit institutions (i.e. banks and mortgage companies), insurance undertakings and investment firms with a license to execute orders on behalf of clients. The marketing of securities funds in Norway also requires either a notification to or a license from Finanstilsynet, depending on whether the fund is a UCITS or not, and where the fund is established. The Act and the Regulations on Securities Funds contain further details of the notification/application process and requirements to the information that shall be provided to the investors. If you are marketing alternative investment funds The marketing of alternative investment funds require either a notification to or a license from Finanstilsynet, depending on where the fund is established, where the manager is established, and whether the fund is marketed to professional and non-professional investors. This duty lies on the manager of the AIF. Marketing of AIF will normally require a license to receive and transmit orders in financial instrument and possibly also a license to execute orders such order on behalf of client, which require a license to provide investment services (link ). The Act and the Regulations on the Management of Alternative Investment Funds contain further details of the notification/application process and requirements to the information that shall be provided to the investors.
Contact Selmer or IKT-Norge for assistance