NORWAY Law and Practice Contributed by: Markus Nilssen, Vanessa Kalvenes and Marcus Cordero-Moss, BAHR
4.9 Banks Securitising Financial Assets Under Norwegian law, there are no specific rules applicable to securitisations performed by banks as compared to other financial institutions. Nor - wegian banks will be permitted to securitise their financial assets and also invest in securitisation positions. Accordingly, any such transactions will be subject to the same legal framework as described elsewhere in this chapter, with the overriding legal framework being the Securiti - There are no special rules that apply to the form of SPEs accomplishing securitisations in Nor - way. As noted in 6.2 SPEs , Norwegian corporate or similar law is not very well suited for SPEs in securitisation transactions and it is assumed that Norwegian financial institutions wishing to use securitisation would utilise SPEs registered outside of Norway, for instance in Ireland or Lux - embourg. 4.11 Activities Avoided by SPEs or Other Securitisation Entities There are no specific provisions under Norwe - gian law which relate to activities that should be avoided by SPEs in relation to securitisations. Under the Securitisation Regulation, the SPE may only perform activities appropriate to accomplishing the purpose of carrying out secu - ritisations. 4.12 Participation of Government- Sponsored Entities sation Regulation and the CRR. 4.10 SPEs or Other Entities There is currently no active securitisation market in Norway and thus no government-sponsored entities participate in the Norwegian securitisa - tion market.
significant credit risk shall not be considered to have been transferred from the originator to the SPE (the commensurate risk transfer test). How - ever, where the originator is able to demonstrate that the reduction in capital it needs to hold after the securitisation is justified by a corresponding and true credit risk transfer from the originator to third parties, this test will be passed. 4.7 Use of Derivatives The Norwegian securitisation legislation (not yet in force as of January 2025) does not include any specific provisions relating to the use of deriva - tives in securitisation transactions other than what follows from the Securitisation Regulation. Norway has implemented Regulation (EU) 648/2012 (EMIR) as amended by Regulation (EU) 2019/834 (EMIR Refit) and Regulation 2019/2099 (EMIR 2.2). However, as of January 2025, Regulation (EU) 2024/2987 and Directive (EU) 2024/2994) (collectively, EMIR 3) is not yet The key elements of investor protection consist of asset segregation, bankruptcy remoteness, risk retention and disclosure provisions in the Securitisation Regulation as well as the disclo - sure requirements in the Prospectus Regulation. Further, the Securitisation Regulation requires a minimum standard of due-diligence measures from institutional investors before investing in securitisation positions. This includes a com - prehensive and thorough understanding of the securitisation position and its underlying expo - sures. The investor is also required to monitor the positions on an ongoing basis and imple - ment written policies and procedures for the risk management of the securitisation position. implemented in Norway. 4.8 Investor Protection
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