Participation in interbank systems outside the EEA
Interbank systems licensed by Norges Bank have legal protection under the Payment Systems Act. From 1 January 2019, this protection was extended also to apply to Norwegian participants in interbank systems that are subject to the legislation of a non-EEA Member State. The reason for this amendment is the UK's potential withdrawal from the EU ("Brexit") without an agreement concluded in accordance with Article 50 of the Treaty on European Union.
Section 4-2 of the Payment Systems Act provides legal protection for interbank systems licensed by Norges Bank and interbank systems established in other EEA Member States that have been notified either to the EFTA Surveillance Authority or the ESMA pursuant to Council Directive 98/26/EC (Settlement Finality Directive). Among other things, this protection entails that agreements on clearing and settlement may be enforced as to their content if insolvency proceedings are opened against a participant in the system concerned.
From 1 January 2019, this protection was extended also to apply to Norwegian participants in interbank systems that are subject to the law of a non-EEA Member State (see Section 4-1, fourth paragraph, second sentence of the Payment Systems Act). Such protection is granted if the Norwegian participant has notified its participation to Norges Bank and information regarding this participation is published on Norges Bank's website.
Participation in interbank systems outside the EEA may be notified to Norges Bank by letter or e-mail including the Norwegian participant's name and LEI /organisation number, information about the system to which the participation pertains, and the name of the system operator.
The following institutions have notified participation in an interbank system that may, following Brexit, be subject to the legislation of a state outside the EEA, and therefore the interbank systems listed below are protected in these circumstances under the Payment Systems Act:
- DNB Bank ASA has notified participation in the CLS foreign exchange settlement system, operated by CLS Bank International.