Supervision

The supervision of AIFMs aims to ensure that the institutions operate in an appropriate and proper manner in accordance with legislation.

Banks are key actors in the financial system. Supervision of the banking and financial sector promotes solid financial institutions with good risk awareness, management and control. Finanstilsynet conducts both on-site inspections and off-site supervision (document analyses).

Finanstilsynet supervises that annual financial statements (at both group and company level), management reports, half-yearly reports and other financial reporting by issuers whose financial instruments are listed, or for which admission to listing has been requested on a regulated market in the EEA, are in compliance with laws or regulations.

The overarching aim of regulation and supervision of the securities market is to ensure 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 saving and investment.

Regulation and supervision of life insurers and pension undertakings are important in safeguarding customers’ rights under insurance and pension contracts, and in instilling public confidence in the market. The supervisory regime aims to foster financially solid, risk-aware undertakings with sound governance and control. Supervisory activity comprises on-site and off-site inspections.

There are a number of prohibitions and obligations concerning how securities market players should act. Such provisions are called conduct rules. The purpose of the conduct rules is to facilitate safe, orderly and effective trading in financial instruments. Failure to comply with the conduct rules is likely to undermine the trust in the securities market, which in turn may jeopardise the securities market's ability to function as an effective source of capital raising.

Finanstilsynet’s tasks in relation to auditors comprise approval of individuals and firms in accordance with the legal requirements applying to profession as well as registration and supervision.

Supervision of debt collection agencies encompasses their financial position, treatment of client funds and debt collection performed on the basis of a personal licence.

Supervision of estate agents encompasses the activities of firms licensed to practise estate agency and lawyers whose estate agency is ancillary to their law business, as well as housing cooperatives that are licensed to provide estate agency services and ordinary housing cooperatives’ brokerage of cooperative flats.

Supervision of the insurance and pensions area aims to ensure satisfactory financial strength, risk awareness, management and control at institutions.

Finanstilsynet’s supervision of institutions in the securities market comprises on-site inspections and off-site supervision. Finanstilsynet is also assigned administrative and legislative tasks.