Disclosure Requirements - Investment Funds - Norway
Disclosure Category: 1
Clearstream Banking S.A. (“CBL”), as an authorised nominee in Norway, is under an obligation, on demand, to disclose the identity and holdings of customers and ultimate beneficial owners in the case of holding Norwegian investment funds. The obligation also applies to unit holders who are liable to meet the obligation to submit statements of earnings to the tax authorities in Norway.
Consent
In order to comply with the applicable legislation, customers holding Norwegian investment funds or entering into transactions in the Norwegian market must consent and are hereby deemed to consent to the required legal disclosure. Such consent includes the appointment of the requestor (for example, the Fund Manager, Transfer Agent, Regulator, Tax authority) as their attorney-in-fact, under power of attorney, to collect from CBL the required information to be disclosed. Customers who do not grant such authority to CBL cannot hold such investment funds or financial instruments in their accounts with CBL.
Disclosure requirements
Customers are advised that local laws and regulations oblige CBL to disclose information on CBL customers and ultimate beneficial owners for securities registered in the nominee account to the party that is entitled by law to receive such information within the stipulated or otherwise deemed suitable time frame by the authority in question.
Norwegian public authorities authorised to receive such information include:
- The Norwegian Tax Administration (Skatteetaten)
- The Financial Supervisory Authority of Norway (Finanstilsynet)
Customers are required to inform CBL if they are the beneficial owner of these Norwegian funds or not. If they are not the ultimate beneficial owner, customers need to ensure that CBL, at all times, is allowed legal and practical access to information regarding the identity of the beneficial owner. Customers subject to provisions of confidentiality in their home country must obtain the necessary legal basis for disclosure through customer agreements (prior consent). In instances where there are multiple levels or intermediaries between CBL and the ultimate beneficial owner, customers need to ensure that a legal basis exists requiring “customers at each level” to submit the identity of their respective customers upon request.
Therefore, if a customer does not provide CBL this legal and practical access to the required beneficial owner information, CBL will take all necessary action required of a nominee in Norway, such as blocking transfers on the undisclosed holdings, until the disclosure request has been complied with and/or refusal of the nominee assignment by the customer.
Background and legal basis
In the case of holding Norwegian investment funds, CBL is obliged under the following legislation to disclose the identity and holdings of customers and/or ultimate beneficial owners.
- Securities Funds Regulations, section 13-4
- Securities Register Act, section 6-3 (4) & section 8-2
- Act relating to measures to combat money laundering and the financing of terrorism, etc. (Money Laundering Act)
- Regulation no. 1360 of 23 November 2016 to the Tax Administration Act section 7-3-4 (as amended, and other applicable Norwegian tax laws)
Sanctions
Failure to comply with the disclosure request from the fund managers, its agents, the regulators and/or tax authority within in the stipulated time frame may result in blocking of undisclosed holdings, freezing of accounts or compulsory redemption of the fund units/shares imposed by the fund managers or regulators. Non-compliance with the disclosure requirements may also result in fines, and/or the withdrawal of authorisation to act as a nominee for CBL.
The customer undertakes to hold CBL harmless and to indemnify CBL from any loss, claim, liability or expense asserted against or imposed upon CBL as a result of the customer failure, whatever the failure, to comply with these disclosure requests.
Disclaimer
The information contained in the Disclosure Requirements is based on the legal opinion obtained by CBL that was issued on 20 August 2018 and the nominee agreements entered into with the fund managers. CBL believes the information to be correct as of that date but disclaims any responsibility as to the accuracy and completeness of the information after that date. In the case of discrepancy between the information provided by CBL and the local laws and regulations, the latter shall prevail. The Disclosure Requirements do not constitute legal advice and customers should seek advice from independent professional counsel.
Customers are responsible for ensuring compliance with the disclosure requirements and agree to indemnify and hold harmless CBL, for any loss, expense, liability, damage or claims, whether direct or indirect, against or incurred by CBL arising out of or resulting from such non-compliance.