NORWAY Law and Practice Contributed by: Daniel Nygaard Nyberg, Karoline Ulleland Hoel, Ole Andenæs and Jens Fredrik Bøen, Wikborg Rein Advokatfirma AS
(European long-term investment funds) and money market funds (MMFs). • UCITS: Largely mirroring the UCITS Directive, these funds cater to both professional and retail investors. • National funds: Alternative securities funds diverg - ing from standard UCITS guidelines, especially concerning investment and diversification. • Special funds: A national funds subset, having more latitude concerning investment strategies and redemptions, albeit with marketing rules for non- professional investors. Post the implementation of the AIFMD in Norway, these are less prevalent than unregulated AIF structures due to their compara - tive inflexibility. • EuVECAs, EuSEFs and ELTIFs: Norway has incor - porated the three EU regulations governing these AIF sub-categories. For these regulated funds, at least 70% of their capital should be channelled into designated qualifying assets, in line with each fund’s objective. This stipulation stands in contrast to “unregulated” AIFs, which do not have such binding investment limits. • MMFs: Norway has incorporated the EU regulation governing money market funds established, man - aged or marketed in the EEA, including such funds taking the form of UCITS or AIFs. 2.3 Disclosure/Reporting Requirements AIFMs are subject to several disclosure and reporting requirements, which introduce transparency require - ments, such as requirements regarding pre-contrac - tual information, annual reports and reporting obliga - tions. Fully licensed managers are subject to statutory dis - closure requirements to both investors and competent authorities, including with respect to pre-investment disclosures and ongoing disclosures. The AIFM Act imposes certain requirements with respect to ongoing reporting to investors, and requires periodic reporting to the competent authorities. While there exists a legislative backbone for disclo - sures, market factors also dictate the nature and extent of these communications. Institutional enti - ties, especially insurers and pension funds, frequently
demand more rigorous ESG and financial disclosures, surpassing mere legal prerequisites. SFDR and Taxonomy Regulation In addition, all managers marketing funds in Norway, irrespective of their licensing status, are subject to the rules implementing the SFDR and the Taxonomy Regulation, which came into force on 1 January 2023. While these rules do not impose specific investment constraints as such, the industry’s evolving preference for ESG and sustainability-driven products suggests managers will embed ESG more comprehensively in their investment and risk management processes, in addition to the specific reporting requirements under the SFDR. In February 2024, the European Commission pro - posed the “Omnibus I” package to postpone dead - lines and simplify sustainability reporting requirements under the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Direc - tive (CSDDD), the EU Taxonomy, and the Accounting Directive. The deadlines for the CSDDD have been postponed to July 2027/2028. In Norway, only the “Stop-the-Clock” Directive has been implemented, delaying sustainability reporting for certain companies by two years (to fiscal years 2027 or 2028, depending on company size/type). Securities Financing Transactions Regulation (SFTR) Additionally, the Securities Financing Transactions Regulation (SFTR) came into force in Norway on 1 August 2024. The SFTR requires AIFMs to report fund securities financing transactions to a transaction reg - Norwegian alternative fund structures are generally taxed under the ordinary Norwegian corporate income tax regime. AIF – Limited Company AIFs established as limited companies (corporate funds) in Norway are ordinarily subject to 22% tax on net income. However, they are largely tax exempt on dividends and gains from qualifying share invest - ments (including shares in companies established in ister as from 1 November 2025. 2.4 Tax Regime for Funds
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