Norwegian Government To Loosen Controls On Ownership Of Banks And Insurers

European Economic Area (EEA) membership rules have obliged the Norwegian Government to introduce to Parliament laws revising the 10 per cent limit on ownership of a Norwegian financial institution (although, by way of derogation, a financial institution may already hold

By None

European Economic Area (EEA) membership rules have obliged the Norwegian Government to introduce to Parliament laws revising the 10 per cent limit on ownership of a Norwegian financial institution (although, by way of derogation, a financial institution may already hold another 100 per cent of another financial institution).

It is now proposed that these provisions be abolished. Instead, buyers will have to notify the competent authorities in order to obtain prior authorisation for a “qualified holding” of 10 per cent or more of the capital or voting stock. Fresh authorisation will have to be sought as shareholdings climb above 20, 25, 33 or 50 per cent of the capital or votes in the institution as well.

The law proposes that the authorities take no more than three months to reach a decision, and that holdings in excess of 25 per cent be subject to a more thorough assessment.

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