The Norwegian Parliament adopted a new law on Central Securities Depositories (CSDs) and on Securities Settlement, March15th 2019.
The new law implements CSDR (the European Regulation on improving securities settlement in the European Union and on central securities depositories) into Norwegian law. The new law will replace the current Securities Register Act of 5 July 2002 nr. 64.
A Norwegian version of the new law is available here.
VPS will publish an English version of the law as soon as the translation has been finished. The implementation of CSDR in the EEA-agreement was agreed on 8 February. It is still not clear when the new law will enter into force and VPS may apply for an authorization under the new regulation. This depend on processes in the three EFTA-countries whereby they need to lift their reservations under article 103 of the EEA-Agreement. When the reservations are lifted in all the three EFTA countries VPS will apply for authorization under the new law and CSDR within six months. The Norwegian reservation was lifted 25 June 2019. Until VPS has a new authorization in place, the old law will apply.
As communicated earlier VPS’ work to implement CSDR has been going on for a long time. Many changes are implemented already. VPS introduced a third settlement cycle on 15 March. On 22. March we published a consultation document regarding VPS Rules for registration of financial instruments, adapting the rules to CSDR and the new law. We are now in the process of assessing the feedback from customers and others.
Based on information from the processes in Island and Lichtenstein VPS plan to send our application in Q1 2020. We have seen from the authorization processes in other countries that competent authorities tend to use some time before they consider the application as complete. From the moment the application is complete the FSA has 6 months to decide whether the authorization shall be granted. The deadline for application for EU-CSDs was the autumn of 2017. So far 14 CSDs have received their authorizations.