Reports from the supervised sectors for 2022

Published: 21 March 2023
Last updated: 3 April 2023

The institutions and markets that are supervised by Finanstilsynet play a key role in the financial infrastructure. In the reports from the supervised sectors for 2022, the work carried out by the various areas during the past year is highlighted. The reports address important supervisory matters, relevant regulatory developments and a number of licensing matters from 2022.

Banks and other financing activity

Banks, credit institutions, finance companies, payment institutions and electronic money institutions are key players in the financial system as providers of financing, payment services and savings products. Regulation and supervision shall contribute to well-functioning markets, financial stability and confidence in the financial system.

Insurance and pensions

Regulation and supervision of the insurance and pension sectors are important in safeguarding customers’ rights under insurance and pension contracts, and in instilling public confidence in the insurance market. The supervisory activities should help ensure that the undertakings are financially sound and safeguard customers’ rights and interests.

Infrastructure in the securities area

The infrastructure in the securities area encompasses trading venues, central counterparties, central securities depositories and financial benchmark administrators. These are shared functions for securities market participants and play a key role in ensuring that the market functions as a source of capital for the business sector and as a basis for investment activities and savings. The supervision of the market players aims to help ensure that the institutions and markets act in an appropriate and proper manner in accordance with legislation.

Securities market conduct

The general market conduct rules and compliance monitoring shall promote investor protection and ensure effective allocation and pricing of capital. The rules on unlawful insider dealing, market manipulation and due care in handling inside information are of key importance. Finanstilsynet also oversees compliance with the rules on the preparation of insider lists, the duty to investigate, the prohibition of unreasonable business methods, the notification requirement for primary insiders and rules requiring the disclosure of large shareholdings.

Investment firms

Regulation and supervision of the securities market aims to ensure reliable information provision and secure, orderly and efficient trading in financial instruments, thereby enabling the securities market to function as a source of capital for business and industry and as a basis for investment and saving.

Mutual funds and collective investment schemes

Finanstilsynet supervises fund management companies and managers of alternative investment funds’ compliance with the Securities Funds Act and regulations thereto. Supervision is risk-based and largely geared to ensuring that consumer interests are protected. In the supervision of managers of alternative investment funds (AIF managers), priority is given to managers of funds targeting retail investors.

Approval of prospectuses – transferable securities

A prospectus shall provide relevant information about the company in connection with public offerings or listing on regulated markets. Through its control, Finanstilsynet shall ensure that the prospectuses contain the required information.

Financial reporting enforcement – listed companies

Finanstilsynet oversees financial reporting by Norwegian-registered entities that are listed on a regulated market in Norway or in another EEA member state, as well as certain foreign entities that are listed on a regulated market in Norway. This supervision aims to contribute to confidence in the financial reporting among investors who invest in these companies.

Auditing

Market participants’ confidence in financial reporting is key to a well-functioning market. This is particularly true for reporting by public interest entities. High audit quality contributes to increased confidence. In order to properly perform the function as a representative of the general public, the auditor must be independent of the client and perform the audit in conformity with the requirements of the Auditors Act.

International cooperation

Cross-border supervisory cooperation aims to help identify risk factors in institutions and fluctuations in the international financial market at an early stage. The supervisory cooperation also enables coordinated measures to mitigate risk and handle crises to be put in place.

Money laundering and financing of terrorism

The fight against crime is one of the operational goals in Finanstilsynet’s strategy and is followed up by overseeing that supervised institutions comply with the Anti-Money Laundering (AML) Act and Regulations.

Digital finance and IT risk

The financial sector is characterised by rapid digitalisation, driven by new and advanced digital solutions, new regulations and new market entrants and service providers. Technological developments entail significant gains for users, financial institutions and society as a whole, but may also introduce new and changed vulnerabilities. As a consequence of the digital threat picture and scope of cybercrime, there was increased focus on digital resilience. Finanstilsynet was closely monitoring developments.