Norges Bank

Supplementary provisions relating to impartiality etc. for members of Norges Bank’s Executive Board and of the Monetary Policy and Financial Stability Committee  (Impartiality Rules)

Legal basis: Laid down by the Ministry of Finance on 20 December 2019 pursuant to Section 2-3, fifth paragraph, and Section 2-6, fourth paragraph, of Act no 31 of 21 June 2019 relating to Norges Bank and the monetary system etc. (the Central Bank Act).

Chapter 1. Objects clause

Section 1. Purpose

The purpose of these rules is to safeguard Norges Bank’s reputation and maintain public trust in the Bank by avoiding conflicts of interest relating to the impartiality of members of Norges Bank’s Executive Board or of the Monetary Policy and Financial Stability Committee or other conflicts of interest, and avoiding any doubt with regard to members' integrity and independence in the performance of their duties.

Section 2. Definitions

(1) “Financial institution” means an institution as defined in Section 1-3 of the Financial Institutions Act.

(2) The definition of “close associate” is the same as in Section 2-5, Nos. 1, 2 and 4 of the Securities Trading Act.

Chapter 2. Governor and deputy governors of Norges Bank

Section 3. Limitation on activities

(1) The governor and deputy governors of Norges Bank may not engage in business activity. The Ministry of Finance may give its consent to participation in such activity in special cases.

(2) The governor and deputy governors of Norges Bank may not be remunerated by, or have remunerated engagements for, or hold a position on, the boards of directors or supervisory bodies of enterprises engaged in business activity. This limitation does not, however, apply to the International Monetary Fund or the Bank for International Settlements.

Section 4. Limitation on interests

The governor and deputy governors of Norges Bank may not as shareholders, unit holders or through an extensive ongoing customer relationship have a prominent interest in financial institutions, securities firms, securities fund management companies, alternative investment fund managers or other enterprises engaged in business activity.

Section 5. Personal trading

(1) The governor and deputy governors of Norges Bank may not acquire Norwegian or foreign financial instruments on their own account.

(2) The prohibition in the first paragraph does not preclude the governor and deputy governors of Norges Bank from acquiring financial instruments through inheritance or division of an estate.

(3) The prohibition in the first paragraph does not preclude the Ministry of Finance from giving its prior written approval in each case in the event of acquisition of such instruments. Financial instruments acquired in accordance with this section may not be disposed of until twelve months have passed since the acquisition date.

(4) The provisions of this section apply correspondingly to trading undertaken by the governor and deputy governors of Norges Bank on the account of close associates.

Section 6. Supplementary provisions to the provisions of the Securities Trading Act relating to insider trading

(1) The governor and deputy governors of Norges Bank may not purchase or dispose of fixed income or foreign exchange products when they have information regarding circumstances that may influence the price, unless this information is publicly available. This rule applies correspondingly to establishing and redeeming fixed income products such as deposits and loans.

(2) The first paragraph applies correspondingly to trading undertaken by the governor or deputy governors on the account of close associates.

Section 7. Duty of disclosure

The governor and deputy governors of Norges Bank shall notify the Ministry of Finance in writing if they have equity holdings or ownership positions in financial institutions, securities firms, securities fund management companies, alternative investment fund managers or other enterprises engaged in business activity, and they shall at the same time disclose any significant guarantee with or loans from private financial institutions. The same applies to any changes in such relationships.

Chapter 3. Other members of the Executive Board

Section 8. Limitation on activities etc.

(1) The external members of the Executive Board may not hold a position or have financial interests that could raise doubts as to members' integrity and independence in the performance of their duties or that could impair trust in Norges Bank, cf. Section 1.

(2) The Ministry of Finance must approve any new positions and professional connections during the appointment period, including changes of a financial nature that could be of importance in a compatibility assessment pursuant to the first paragraph, cf. Section 1.

Section 9. Supplementary provisions to the provisions of the Securities Trading Act relating to insider trading

(1) The other members of the Executive Board may not purchase or dispose of fixed income or foreign exchange products when they have information regarding circumstances that may influence the price, unless this information is publicly available. The first sentence applies correspondingly to establishing and redeeming fixed income products such as deposits and loans.

(2) The first paragraph applies correspondingly to trading undertaken by an Executive Board member on the account of close associates.
 

Chapter 4. The external members of the Monetary Policy and Financial Stability Committee

Section 10. Limitation on activities

(1) The external members of the Monetary Policy and Financial Stability Committee may not be remunerated by, or have remunerated engagements for, or hold a position on the boards of directors or supervisory bodies of financial institutions, securities firms, securities fund management companies or alternative investment fund managers, or hold other positions or have financial interests that could raise doubts as to members' integrity and independence in the performance of their duties or that could impair trust in Norges Bank, cf. Section 1.

(2) The external members of the Monetary Policy and Financial Stability Committee may not be remunerated by, or have remunerated engagements for, or hold positions in enterprises that through ownership or an extensive ongoing customer relationship have a prominent interest in enterprises referred to in the first paragraph.

Section 11. Limitation on interests

The external members of the Monetary Policy and Financial Stability Committee may not as shareholders, unit holders or through an extensive ongoing customer relationship have a prominent interest in financial institutions, securities firms, securities fund management companies or alternative investment fund managers.

Section 12. Supplementary provisions to the provisions of the Securities Trading Act relating to insider trading

(1) The external members of the Committee may not purchase or dispose of fixed income or foreign exchange products when they have information regarding circumstances that may influence the price, unless this information is publicly available. The same applies to establishing and redeeming fixed income products such as deposits and loans.

(2) The first paragraph applies correspondingly to trading undertaken by an external member of the Committee on the account of close associates.

Chapter 5. Other provisions

Section 13. Exemptions

The Ministry of Finance may, when it finds it unobjectionable to do so, make exemptions from Sections 3 to 7 and Sections 9 to 12. In an assessment of whether exemptions should be made, the purpose of the supplementary provisions should be particularly borne in mind, cf. Section 1.

Section 14. Entry into force and repeal of previous regulation

These rules enter into force on 1 January 2020. On the same date, Regulation No. 809 of 7 August 2000 relating to the relationship of members of Norges Bank’s Executive Board with other credit institutions and enterprises is repealed.

Edited 1 April 2020 17:00