VPS has developed VPS Own Account Trading to assist companies in their compliance with the duties imposed by Section 8 of the Securities Trading Act in respect of own account trading by employees.

The service  is available to undertakings that fall within the scope of Section 8-1 of the Securities Trading Act and are authorised as account operators for VPS. Only undertakings that satisfy both criteria are permitted to enter into a contract to use the service in respect of trading carried out by their employees, elected officers and their related parties.

The service helps its users to efficiently comply with the surveillance and reporting rules stipulated in the Securities Trading Act in respect of own account trading by employees.

As part of these duties, the undertaking is required to record and retain information on trading carried out by any person that is subject to the requirements for three years. The undertaking must also carry out a routine assessment of whether any trades have been carried out in breach of the requirements of Section 8 of the Securities Trading Act, and to report any suspicion of such a breach to the Financial Supervisor Authority of Norway (Finanstilsynet).

Undertakings that use the service can use a web-based application to maintain an up-to-date register of the private individuals and other entities to which the service applies. The undertaking can also use the application to record trades in financial instruments that have not been registered in the VPS system.

The service delivered by VPS provides functionality for monitoring and compliance. Users of the service remain fully responsible for ensuring that they comply with the reporting requirements and other requirements stipulated in the Securities Trading Act.

This service does not in any way replace the personal duty of employees, elected officers and their related parties to report transactions in accordance with Sections 8-5 and 8-6 of the Securities Trading Act.

Functions offered by the service

• Users can establish and maintain their own list of employees, elected officers and departments, as well as lists of any relevant securities that are not registered with VPS.
• Users can automatically capture and register transactions in VPS-registered securities that are carried out by persons registered on their list.
• The service can be used to produce reports for submission to Finanstilsynet, and the user can also set up regular customised reports at the business unit and employee level within defined ranges.
• The service is available to its users throughout the normal business hours for the VPS electronic systems as advertised at any time, save for any unavoidable interruptions required for actions such as backup procedures.

Benefits

• Saves time and reduces costs.
• Ensures high-quality and accurate reporting.
• Simplifies the undertaking’s procedures for monitoring the reporting by employees, elected officers and their related parties of their trading in VPS-registered securities.
• Offers simplified procedures for dealing with transactions in securities that are not registered with VPS since the service has specific functionality for this purpose.
• Provides a sound basis for monitoring and compliance.