Norwegian Financial Institutions Warned: Loans through Platforms Must Not Exceed NOK 1 Million per Year
New Regulation Aims to Ensure Financial Stability and Consumer Protection
Oslo, Norway - The Norwegian government has announced a new rule requiring loans provided through platforms not to exceed NOK 1 million (approximately EUR 110,000) per year. This move is aimed at regulating the financial sector and ensuring that financial institutions comply with strict regulations.
Requirements for Financial Institutions
- Only managers of key functions require approval from the Ministry of Finance
- Financial institutions must notify Finanstilsynet of any changes to their management structure or if a person no longer meets the fitness and propriety requirements
- Payment institutions, electronic money institutions, and account information service providers must provide additional documentation when applying for a licence, including:
- Procedures for monitoring and handling security incidents
- Business continuity plans
- Policies on data collection and storage
Regulations for Insurance and Pension Undertakings
- Insurance undertakings and pension undertakings operating in Norway or other EEA member states must notify Finanstilsynet of any changes to their operations or management structure
Commitment to Financial Stability and Consumer Protection
“We are committed to ensuring that financial institutions operate in a safe and secure environment,” said [Name], Director General at Finanstilsynet. “These regulations will help prevent financial instability and protect consumers.”
Background
The Financial Institutions Act is a set of regulations aimed at ensuring that financial institutions operate in a safe and secure environment. The act applies to all financial institutions operating in Norway, including banks, insurance companies, pension funds, and payment service providers.
Finanstilsynet is responsible for supervising and regulating the financial sector in Norway, with the aim of preventing financial instability and protecting consumers.
Conclusion
The Norwegian government’s decision to limit loans provided through platforms to NOK 1 million per year is a significant step towards ensuring financial stability and consumer protection. Financial institutions operating in Norway must comply with these regulations by providing detailed information on their operations and management structure. The new rule comes into effect immediately, and institutions are advised to take immediate action to ensure compliance.