New Norwegian hedge fund regulation will enter into effect on 1 July 2010
The new Norwegian regulations on so-called special funds (non-UCITS funds, a category of funds including hedge funds) will enter into effect on 1 July this year.
The main features of the new regulations are:
There will be a new category of securities funds that can be created pursuant to the Norwegian Securities Fund Act, so-called special funds (non-UCITS funds).
The special fund-category will include hedge funds and similar fund constructions, all of which will be permitted to use a wider specter of investment techniques than those previously permitted by the Securities Fund Act.
It will be legal to:
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create Norwegian special funds (non-UCITS funds); and to
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market and sell foreign special funds (non-UCITS funds)
A permission from the Norwegian FSA will be required in order to market foreign special funds in Norway (marketing of foreign UCITS funds only requires a notification to the Norwegian FSA).
In order to be granted permission to market a foreign non-UCITS fund in Norway, the applicant must document to the Norwegian FSA that the level of investor protection in the home state of the fund, as relates to non-UCITS funds, at least equals that of Norway in relation to non-UCITS funds.
Foreign non-UCITS funds may only be marketed to Norwegian professional investors (the MiFID definition of professional investor applies). As regards what constitutes marketing under Norwegian law, the principle of first-initiative applies.
In case of any questions concerning the new regulations, please contact
Morten W Winther, cell phone +47 99264773, e-mail: mww@simonsenlaw.no