Ownership restrictions in the field of securities

Reference is made to letter from EFTA Surveillance Authority 11 April 2007, requesting information regarding the appointment of a Working Group which shall look into and consider the issues of ownership and voting restrictions in the field of securities in Norwegian legislation, as envisaged by the Ministry of Finance in its White paper, Ot.prp. nr. 34 (2006-2007). Further, reference is made to e-mail from the Authority 10 May 2007, giving the Ministry time until 5 June to respond to the Authority’s request.

As stated by the Authority in its letter, the Ministry of Finance presented a White paper to the Norwegian Parliament on 23 March this year, with a proposal for a new Securities Trading Act and a new Regulated Markets Act. As stated under point 9.3.5, the Ministry envisages that a Working Group shall be appointed in order to look into issues relating to ownership and voting restrictions in certain institutions operating the Norwegian financial infrastructure (including stock exchanges).

The Norwegian Parliament's Financial Committee presented its report on the White paper on 24 May 2007. The Parliament debated and voted on the matter on 29 May, and acceded to the proposal of appointing a Working Group to look into the said issues.

The Ministry intends to appoint the Working Group within the end of June this year. The Ministry will inform the Authority further on the time frame and the mandate of the Working Group, after the group is appointed.

In its letter, the Authority states that it is aware of an application for an exemption under section 4-1 of Act 17 November 2000 No 80 on stock exchanges, that is to be assessed by the Norwegian authorities. The Authority would like to be informed about the outcome of this case.

The Ministry is currently assessing two separate applications for exemptions under section 4-1 of the Act on stock exchanges, and under a similar provision in Act 5 July 2002 No 64 on Securities Register, cf. section 5-2. The Financial Supervisory Authority has sent its recommendation on the two applications to the Ministry in letters dated 2 May 2007 (please find copies enclosed). The Ministry will make a final decision on the applications within the end of June, and will subsequently inform the Authority about the outcome.

Yours sincerely,

Jan Bjørland
Director General

Tore Mydske
Deputy Director General