International cooperation

The financial markets are international, and principles for regulations and supervision are prepared at the global level and in the EU. Finanstilsynet therefore collaborates with other authorities both globally and within the EEA on the supervision of the financial markets and financial institutions.  

Global cooperation 

There is global cooperation between states and authorities to develop principles for regulations and supervision of financial institutions and financial markets. Finanstilsynet participates in a number of international organisations and working groups. Several of these are described in further detail on Finanstilsynet’s website.  

European cooperation  

About the European Supervisory Authorities 

In 2021, Finanstilsynet continued to give priority to cooperation within the EEA in lieu of other global cooperation, especially the cooperation with the European Supervisory Authorities: 

• European Banking Authority (EBA)
• European Securities and Markets Authority (ESMA) 
• European Insurance and Occupational Pensions Authority (EIOPA) 
• European System Risk Board (ESRB) 

Finanstilsynet is a member of the European Supervisory Authorities along with the other national financial supervisory authorities in the EEA countries. This is stipulated in the EEA Agreement. The EEA EFTA states are not entitled to vote as members of the bodies that make decisions, and the European Supervisory Authorities cannot make decisions directly aimed at the EEA EFTA states.  

In 2021, Finanstilsynet was represented at all meetings of the Boards of Supervisors of EBA, ESMA and EIOPA. Due to the Covid-19 pandemic, most of the meetings took place on digital platforms. Finanstilsynet also attended meetings of a number of sub-committees that prepare matters for the Boards of Supervisors.   

Finanstilsynet participated in all of the meetings of the ESRB's General Board in 2021, as well as in key sub-committees. The meetings were held digitally. During the year, the ESRB worked on recommendations on dividend restrictions in financial institutions and the scope of government support measures to mitigate the impact of the Covid-19 pandemic.  

Owing to high risk in the housing market in a number of countries, the ESRB issued warnings and recommendations to several member states in 2021 on the use of macroprudential measures. 

The European Supervisory Authorities’ legislative work 

The overarching pan-European legislation is prepared and adopted in the EU by the European Commission, the European Council and the European Parliament. The European Supervisory Authorities are often asked to provide feedback on this work. In 2021, this included initiatives related to digital finance, rules to prevent money laundering and terrorist financing, and the adaptation of rules in consequence of the Covid-19 pandemic.  

Another important task for the European Supervisory Authorities is to draft proposals for regulations supplementing the overarching regulations. Finanstilsynet participated in this process in 2021. When draft supplementary rules are published for consultation, Finanstilsynet shares information on the consultation on its website. 

More information about the regulatory work of the European Supervisory Authorities can be found on their respective websites.  

Throughout 2021, Finanstilsynet provided guidance for Norwegian institutions on pan-European legislation. 

The European Supervisory Authorities’ work on supervisory practices 

The European supervisory cooperation monitors and manages financial market risk at the European level. The financial supervisory authorities in all EEA countries report financial market figures to the European Supervisory Authorities, which form the basis for overarching analyses and the assessment of possible measures. Finanstilsynet provided such regular reporting from the Norwegian financial market in 2021. 

Finanstilsynet takes part in so-called supervisory colleges for large cross-border groups. This is a cooperative effort with financial supervisory authorities from other countries where the financial group is established. Read more about reporting and supervisory colleges in the reports from the various supervised sectors. 

The European Supervisory Authorities assess what are good supervisory practices. In 2021, several guidelines were established on such practices at the European level. Finanstilsynet considered which guidelines should be followed in Norway and published the guidelines on its website.  

The national financial supervisory authorities in the EEA conduct peer reviews. The supervisory practices of the various countries are examined, and the supervisory authorities provide advice on adaptations and best practices. Finanstilsynet participated in a number of such peer reviews in 2021. The reports issued after the reviews are published on the websites of the European Supervisory Authorities. As the national financial supervisory authorities in the EEA have different approaches to risk-based supervision and priorities, this type of review can be challenging in terms of both resource use and conclusions about recommended methodologies, particularly for small supervisory authorities such as Finanstilsynet. 

In recent years, ESMA has conducted a number of Common Supervisory Actions (CSAs). This implies that all countries should conduct supervisory activities in the same way, at the same time and based on a common methodology. ESMA determines both the design, scope, implementation and reporting of such supervision. Participation is in accordance with Norway’s EEA obligations but is resource-demanding. Finanstilsynet’s flexibility and scope of action with respect to supervisory priorities and methods are thus reduced. In 2021, Finanstilsynet participated in one CSA on costs in UCITS funds and in one CSA on compliance with the MiFID II rules on product governance.  

European supervisory cooperation is described in the reports from the various supervised sectors where relevant.  

Collaboration on audit oversight 

In 2021, Finanstilsynet was an observer in the European collaboration between audit regulators, the Committee of European Auditing Oversight Bodies (CEAOB). In addition to cooperation on supervisory methods and harmonised practices, the committee registers supervisory reports concerning auditors in a common European database, which is a useful basis for the supervision of the largest auditing firms and for communication with the standard setters for audit oversight. 

EU legislation becomes EEA obligations and Norwegian legislation  

EU legislation in the financial area is normally incorporated into the EEA Agreement and implemented in Norwegian laws or regulations. Finanstilsynet is involved in the preparations, inter alia through its participation in the EFTA cooperation, where the EEA EFTA states consider whether the regulations are EEA-relevant and whether there is a need for adjustments. In Norway, the Ministry of Finance is responsible for this process. 

When supplementary regulations, so-called level 2 legislation adopted by the European Commission, are included in the EEA Agreement, Finanstilsynet is often responsible for preparing for and implementing these as Norwegian regulations. This is in keeping with the authority delegated to Finanstilsynet by the Ministry of Finance. During 2021, Finanstilsynet adopted a number of regulations implementing these EEA obligations. 

The incorporation of EU legislation in the financial area into the EEA Agreement has been delayed for a long time. In 2021, some 50 EU directives and regulations concerning the financial market were incorporated into the EEA Agreement. At the end of 2021, 122 legislative acts in the financial area had been adopted in the EU but had yet to be incorporated into the EEA Agreement. 

One purpose of the Instructions for Official Studies and Reports is to make sure that Norway's participation in the cooperation within the EEA is managed in a comprehensive and effective manner. In light of the scandal where NAV (Norwegian Labour and Welfare Administration) had misinterpreted EEA rules, a working group appointed by the government presented a report in 2020 on measures to improve the quality of regulations and the availability of Norwegian regulations implementing EEA regulations. In 2021, Finanstilsynet provided feedback on the consultation on amendments to the Instructions for Official Studies and Reports, generally supporting the working group’s proposals.  

Nordic and Nordic-Baltic cooperation 

A number of financial institutions offer services in other Nordic countries through subsidiaries and branches and through cross-border operations. In such an integrated Nordic financial market, close cooperation between supervisory authorities is important. The financial supervisory authorities in the Nordic countries have annual meetings both at top management level, for the various supervisory areas, for legal and administrative matters and for a number of other special areas. 

Regular cooperation meetings have also been established with other Nordic supervisory authorities in the field of auditing. In most other countries, the national financial supervisory authority is not responsible for audit oversight.  

Finanstilsynet participates in the Nordic-Baltic Stability Group. This group has representatives from the finance ministries, central banks and financial supervisors in the Nordic and Baltic countries. The group has drawn up a framework for coordination of measures in the various countries in the event of a crisis situation at systemically important cross-border financial institutions. 

Finanstilsynet participates in the Nordic-Baltic Macroprudential Forum (NBMF) and NBMF sub-groups. The forum brings together the top management at central banks and financial supervisors and discusses macroprudential surveillance and other supervisory activity in the Nordic-Baltic area.   

Along with the other supervisory authorities in the region, Finanstilsynet participates in a Nordic-Baltic anti-money laundering working group and in a Nordic-Baltic working group on PSD 2 and fintech. 

International organisations and committees in which Finanstilsynet participated in 2021 

Cross-sectoral

• European Systemic Risk Board (ESRB)  
• The Joint Committees of the EBA, ESMA and EIOPA  
• EFTA Working Group on Financial Services 
• Nordic-Baltic Macroprudential Forum 
• Nordic-Baltic Stability Group
• Nordic-Baltic Anti-Money Laundering Working Group 
• Nordic-Baltic Working Group on PSD 2 and Fintech 
• Financial Stability Board (FSB), Regional Consultative Group for Europe 
• Financial Action Task Force (FATF) – the international forum for measures for combating money laundering and terrorist financing, with its secretariat in the OECD 
• LEI ROC, Regulatory Oversight Committee, Global Legal Entity Identifier (LEI) System
• Integrated Financial Supervisors Conference (IFSC) – annual conference 
• Network for Greening the Financial System (NGFS) 
• European Forum for Innovation Facilitators (EFIF) 

Banking and finance 

• European Banking Authority (EBA)
• Basel Consultative Group (Basel Committee) 
• Policy and Standards Group – Basel Committee (Finanstilsynet did not participate in 2021 but will follow up the group’s work in 2022) 

Insurance and pensions 

• European Insurance and Occupational Pensions Authority (EIOPA)  
• International Association of Insurance Supervisors (IAIS)
• International Forum of Insurance Guarantee Schemes (IFIGS)  

The securities area 

• European Securities and Markets Authority (ESMA) 
• International Organization of Securities Commissions (IOSCO)  
• Enlarged Contact Group on Supervision of Collective Investment Funds (ECG) 

Auditing 

• Committee of European Auditing Oversight Bodies (CEAOB)  
• International Forum of Independent Audit Regulators (IFIAR)   

ICT supervision 

• Information Technology Supervision Group (ITSG)
• Financial Information Sharing and Analysis Center (FI-ISAC) – forum where the banking sector, prosecuting authorities and computer emergency response teams (CERTs) share information on cybercrime in the financial sector