Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 4

Each market must have clear rules assuring investor protection by safeguarding participants from the financial risks of failed settlement and ensuring that listed companies are required to follow sound policies on corporate governance, transfer of economic benefits and shareholder rights.

1.	Does the depository or the market have securities lending and borrowing schemes in place, and are these open to all market participants and their settlement agents?	The depository runs an automated pool lending system for settlement purposes. The system is open to brokers in the Norwegian market. Bilateral lending for other purposes is conducted by the custodian banks.
2.	Does the settlement system mark fail trades to market and collect margin from the failing counterparty to protect the innocent counterpart's interest?	No such tradition is established in Norway.
3.	Does the market operate a guarantee fund or have an equivalent procedure to protect against the cost of failed transactions; and which sectors of the market does it cover?	There is no guarantee fund in the Norwegian market. The cost of failed transactions is the sole responsibility of the market participants.
4.	Are the stock transfer agents (share registrars) linked electronically to the depository?	Registrars are linked electronically to the depository. However, they do no longer act as transfer agents.
5.	Is there a legal maximum time period to complete ownership transfers in the books of the issuer? If so, does market practice adhere to the deadline?	There is no legal maximum time period. Complete ownership transfer is a result of a complete T+3 rolling settlement period of the CSD.
6.	Are investors entitled to all benefits arising on a security from the point of purchase; and how are any rules enforced?	Benefits from the point of purchase are limited and separated from the T+3 right and title registration in the CSD. Rules are often related to company by-laws.
7.	Is proxy voting permissible in the market and can such proxies be lodged by post or other remote delivery method?	Proxy voting is rendered as a service through the local custodians. Instructions on how to vote will be conveyed by a SWIFT instruction.
8.	Are there binding rules in the market stating the minimum and maximum lapsed time between the announcement and completion of key events, including registration, the calling of shareholder meetings, the payment of dividends or interest, rights issues, tender offers and other voluntary corporate actions?	Yes.
9.	Are all voluntary corporate actions advised through a central mechanism assuring consistent information to all investors?	Yes and No: Companies are obliged to advertise their corporate action in at least one newspaper. Custody clients are advised by their local custodians.
10.	Is information on corporate actions available electronically, and is the minimum lapsed time for responding to such actions sufficient to enable all domestic and foreign investors to respond in a timely and considered fashion?	All information is not available electronically. The minimum lapsed time for responses is sufficient both for local and foreign owners.