What is a VPS account?
Large companies with many shareholders choose to be registered with VPS, which operates the Norwegian central securities depository. Shares issued by all the companies listed on Oslo Børs (the Oslo stock exchange) are registered with VPS, as well as shares in other companies that are not listed. In addition, most other securities and funds that are listed on the stock exchange are registered with VPS.
You must have a VPS account if you intend to purchase VPS-registered securities. You will need to open a VPS account with what is known as a VPS account operator, normally a bank, investment firm or a fund management company. What is an account operator?
Guarantee of proper registration of your securities
As an investor, your ownership of the securities you purchase will be registered directly on a VPS account in your name. A VPS account works for securities in much the same way as a bank account works for money.
You are not restricted to using a single account operator, and if you use VPS accounts with different account operators you will be able to see information on all of your holdings in one place using VPS Client Services .
Registration with VPS is normally the most practical arrangement for both companies and investors. The electronic applications VPS has developed in relation to securities registration deliver benefits for both companies and investors. We guarantee that you will be properly registered as the owner of your securities, and registration ensures that companies and investment funds have accurate information on their shareholders and unit holders.
VPS is authorised by the Norwegian authorities as a securities register, and is subject to strict rules for the security of its activities as a securities register.
The benefits of a VPS account:
- Registers you as the owner of your securities
- Direct access to your account over the internet
- Notifications of every movement on the account, either by post or through VPS Client Services
- Annual statement to provide information on all the holdings on your account
- Direct contact by companies when changes are to take place that will affect you as a shareholder
- Notices of general meetings
- Dividends paid directly into your bank account
- VPS reports directly to the Norwegian tax authorities to provide information that forms the basis for partial pre-completion of your annual tax return
- A VPS account can be pledged as collateral, for example as collateral for a loan