Published: 21 February 2024
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 2023, 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 2023.
Regulation and supervision shall contribute to well-functioning markets, financial stability and confidence in the financial system. In 2023, the supervision of banks and other financing activity focused on management and control, capital requirements, credit risk with emphasis on the loss allowance rules, anti-money laundering (AML), ICT risk and crisis preparedness.
Regulation and supervision shall help ensure that the undertakings are financially sound, that they properly manage and control operations, and that they safeguard customers’ rights and interests. Supervisory activity in 2023 focused on market risk, insurance risk, consumer protection and the undertakings' use of artificial intelligence.
In 2023, Finanstilsynet carried out an inspection of how Oslo Børs follows up equal treatment of shareholders in connection with issuers' use of private placements. In Finanstilsynet’s opinion, the Norwegian central securities depository (Euronext Securities Oslo) breached the provisions on oversight of account operators and the duty of disclosure to Finanstilsynet, and thus received an administrative fine of NOK 1 million. Outsourcing of data storage to external cloud service providers was the topic of a pan-European thematic inspection at the Euronext Group in 2023.
For the first time, Finanstilsynet has used its authority to impose administrative fines for market manipulation and uncovered short sales. In 2023, three judgments were passed and one fine imposed by Økokrim (the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime) based on Finanstilsynet's reports of suspected insider trading.
In 2023, Finanstilsynet carried out four thematic inspections encompassing a total of 34 investment firms. The inspections focused on the following topics: advice and information to issuers on equal treatment of shareholders and the handling of inside information, placing of unlisted securities, market surveillance and capital adequacy. During the year, Finanstilsynet also registered that seven firms failed to meet the capital requirements and revoked the authorisation of one investment firm.
Supervision of fund managers in 2023 focused on the following topics: good information and transparency, management in accordance with mandates, cost management, good corporate governance, risk and liquidity management in the funds, and valuation. Anti-money laundering and the work on sustainability were other important topics.
Read more about Mutual funds and collective investment schemes
Finanstilsynet controls that prospectuses contain the required information. In 2023, Finanstilsynet approved a total of 91 prospectuses, which was somewhat lower than in 2022. Two companies were fined for breaching the obligation to prepare an EEA prospectus. One company was criticised for breaching prospectus rules.
Read more about Approval of prospectuses – transferable securities
In 2023, Finanstilsynet gave priority to following up how companies report on the consequences of climate-related matters, Russia's invasion of Ukraine and macroeconomic challenges. Finanstilsynet's financial reporting enforcement revealed a number of material weaknesses in companies' financial reporting.
Market participants’ confidence in financial reporting by the business sector is key to a well-functioning market. High audit quality contributes to increased confidence. In 2023, Finanstilsynet carried out inspections at three audit firms that audit public interest entities and 21 other audit firms. Regulatory violations have resulted in administrative fines or, in some cases, the revocation of authorisations.
