On Apr. 9, NOR GVT issued capital requirements regulation updates.
NOR GVT published capital requirements regulation (CRR): amending provisions.
Follows Europalov Feb. 2021, updated bank, investment firms solvency, see #97501.
Background
Regulation (EU) 2019/876 amends regulation (EU) No 575/2013 regarding unweighted core capital ratio, and regulation (EU) No. 648/2012, under bank reform package.
Norway Implementation
Capital requirements regulated under Financial Undertakings Act/capital regulations.
Prop. 147 LS (2020–2021) incorporate (EU) 2019/876, 2020/873 into EEA agreement.
Proposes implementing EU banking package (CRR2, CRD5 and BRRD2) into the Act.
Ministry of finance recommendations admitted to government on Apr. 9, 2021.
Mainly applies to capital requirement changes/bank crisis management rules already implemented in Norwegian law, so mainly involves adjustments to existing regulations.
Apr. 9, 2021, Covid Amendments
On Apr. 9, 2021, Europalov updated on CRR regulation amendments in light of Covid.
Regulation (EU) 2020/873, Jun. 24, 2020, amends provisions in regulations (EU) 575/2013 and (EU) 2019/876 and are included in prop. 147 LS (2020–2021).
(EU) 2020/873 relaxes certain requirements, including speeding up implementation of agreed facilitations in CRR2, including exemption provision to all central bank reserves.
NOR GVT proposes participation in committee decision for package additions to EEA agreement; separate consent bill submitted for directives CRD5/BRRD2 at a later date.
Law 100 amended Act 1 of Dec. 1956 on supervision of financial undertakings, etc. (Financial Supervision Act); Act 75 of Jun. 2007 the Securities Trading Act.
Also act 17 of Apr. 2015 on financial undertakings, financial groups (Financial Undertakings Act); together they implement the EU rules on capital requirements.
The act applies from the time the King decides, may enforce individual provisions at different times whereas the Ministry may issue further transitional rules as sees fit.
Oct. 2021 EEA Committee Decision
On Oct. 29, 2021, Europalov announced decision 301/2021 of EEA Joint Committee.
Point 14a (CRR) Annex IX to EEA Agreement changed, adaptations (e)-(m) replaced.
Point 14ab (Implementing reg 680/2014) of Annex IX to the EEA Agreement replaced.
Point 14azv re reg 2021/453 added to Annex IX; pt 31bc (reg 648/2012) amended.
Dec in force on Oct. 30, 2021 if all notifications in art 103(1) EEA Agreement made.
Decision published in EEA Section of, in EEA Supplement to, the EU Official Journal.
Dec. 2021 EEA Joint Committee Decision
On Dec. 11, 2021, Europalov announced EEA decision 383 on CRD5 in EEA Agreement.
Amended Annex IX (Financial services) to EEA Agreement to amend point 14 on CRD.
The changes include several adaptations of the directive to the EEA framework.
Decision enters into force on Dec. 11, 2021, provided all notifications under art 103(1) of EEA Agreement have been made, or on day of the entry into force of Decision of the EEA Joint Committee 301/2021 of Oct. 29, 2021, whichever is the later.
Prop. 52 S (2021–2022) requests the consent of the Storting to approve the EEA Committee's decision on the incorporation of CRD5 into the EEA Agreement.
EEA Committee decision and legal act in unofficial NOR translation appended to bill.
Draft EEA Committee decision for said incorporation was not sufficiently clear at time of the presentation of Prop 147 LS i.e. that Storting's consent could be requested in it.
Prop 147 LS section 1.3 stated the Ministry will return to the Storting with another proposition, request consent for approval of EEA Committee's dec (that Prop 52 does).
Mar. 2022 EEA Draft Decision
On Mar. 15, 2022, Europalov announced draft EEA decision re BRRD2 was sent to EU.
Apr. 2022 EEA Decision Ratification and Decision
On Apr. 29, 2022, Europalov announced the EEA Committee decision was ratified by Liechtenstein; thus, the decision will enter into force on Jun. 1, 2022.
On the same day Europalov announced EEA Committee decision 145/2022 of Apr. 29 amending Annex IX (Financial services) to EEA Agreement to include reg 2019/879.
Decision in force on Apr. 30 if all notifications under art 103(1) EEA Agreement made.
To be published in the EEA Section of, and EEA Supplement to, the EU Official Journal.
May 9, 2022 Entry into Force
On May 9, 2022, Europalov announced issuance of RD 807 setting entry into force of Act 100 of Jun. 18, 2021 on amendments to the Financial Undertakings Act, etc.
Act on capital requirements and crisis management rules for financial undertakings, etc. will enter into force on Jun. 1, 2022, as set by Royal Decree 807 of May 6, 2022.
May 13, 2022 Ratification by Iceland
On May 13, 2022, Europalov announced the EEA Committee decision on related acts was ratified by Iceland and as a result the decision will enter into force on Jul. 1, 2022.
EEA Agreement Annex IX, re Directives 2019/878, 2019/879, Regulation 2017/2188.
Regs 2018/405, 2019/876, 2020/873, 2021/424, 2020/2176, 2021/541, 2021/453, 2021/923, 2021/539; the entry into force of the extensive regs is Jun. 1, 2022.
The new regulations amend heavily the CRR/CRD IV Regulations 1097 of 2014.
The consent bill is focused on the approval of EEA Committee's decision 145/2022 of Apr. 29, 2022 on the incorporation of BRRD2 into the EEA Agreement.
Recommendation from Ministry of Foreign Affairs of Aug. 12, 2022 was approved by the Cabinet on the same day; proposal sent to Storting (for parliamentary resolution).
Sep. 2022 Official Publication
On Sep. 22, 2022, EU CMSN published decision 145/2022 changing EEA Agreement.
On Mar. 14, 2024, EEA JC issued Dec 383/2021 of Dec. 10, 2021 in Official Journal.
Text states dec shall enter into force on Dec. 11, 2021 if notifications under Art. 103(1) of EEA Agreement made, or upon entry into force of Dec 301/2021 of Oct. 29, 2021, whichever is later; EEA Dec 301/2021 entered into force Jun. 1, 2022 (#120280).
