• EFTASA noted Norway is in breach of EEA rules for restricting shareholding in insurance undertakings and credit institutions thus sent 2 reasoned opinions on the matter.

Key Aspects

• Incorrect implementation and application by Norway of relevant EEA acts regarding prudential assessment of acquisition, increase of qualifying shareholdings in financial sector.
• EEA rules on that have been fully harmonized, this ensures that proposed acquisitions of qualifying shareholdings treated in same way throughout internal market, across sectors.
• EEA States cannot have in place requirements that go beyond those set by EEA law.
• EFTASA concluded Norwegian legislation on financial institutions and financial groups allows for assessment of additional criteria to those set out in the applicable EEA acts.
• In the other case, concluded Norway incorrectly applied relevant EEA acts by imposing requirements, via administrative practice, more stringent than those set by EEA law.
• Entailing additional notification requirements, as main rule, that no single shareholder is allowed to acquire 25% of voting rights/capital in insurance company, credit entity.

Other Aspects

• A reasoned opinion is the second step in formal infringement proceedings against an EEA EFTA State; Norway has 2 months to take necessary measures and notify them.
• Otherwise, EFTASA may decide to bring one or both cases to the EFTA Court.