EFTA Court Rules Norwegian Ownership Restrictions Violate EEA Law

The EFTA Court has ruled that Norway's administrative practices requiring approval for acquisitions of 25% or more in banks and insurance companies, along with a presumption against such approvals, are incompatible with the EEA Agreement. The Court found that these practices impose additional criteria beyond those set out in the CRD IV and Solvency II directives, undermining legal certainty.

This judgment is expected to have significant implications for the Norwegian financial sector, potentially facilitating increased ownership in Norwegian insurance companies and credit institutions. The Norwegian Financial Supervisory Authority is anticipated to adjust its administrative practices in line with this ruling.

The decision underscores the importance of aligning national administrative practices with EEA law to ensure consistency and legal certainty within the financial sector.