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New securitisation legislation in Norway

News | 04.12.18

Banking and finance
On 3 December 2018, the Norwegian Ministry of Finance asked the Norwgian FSA to establish a working group to consider the transposition of the new EU-regulation (Regulation (EU) 2017/2402) on securitisation into Norwegian law. The working group has been asked to submit a report to the Norwegian FSA by the end of May 2019. The working group will include members from the Norwegian FSA, the Norwegian Central Bank and the Ministry of Finance.

The previous Norwegian Financial Institutions Act included provisions on securitisation. These provisions were not continued in the current Financial Institutions Act, which came into effect on 1 January, 2016. The current Financial Institutions Act does not prohibit securitisation. However, without an exemption from the capital requirements and other regulatory requirements, it is currently not a viable proposition to carry out securitisations in Norway.

The objective of the EU Regulation on securitisation is to harmonise the securitisation legislation within the EU.