About the Norwegian Mutual Fund Association
The Norwegian Mutual Fund Association works to promote a healthy development of the Norwegian Fund Management industry. Key activities include
- Developing industrywide standards for market practise and advicing members on fund management and regulatory issues.
- Monitoring adherence to industrywide standards and administering sanctions on actions not compliant with these standards and/or the best interest of the industry
- Representing the industry in relations with the authorities, media and other external stakeholders
- Promoting knowledge of and interest in mutual fund investments in the Norwegian savings and pensions market
- Facilitating and promoting the exchange of knowledge and best practise between members through cooperation (within the boundaries of Norwegian competition legislation)
- Monitoring practise and development of the international fund management industry, principally through regular contact with sister associations abroad
Our vision is to make mutual funds the most widely used, effective and efficient savings vehicle in the Norwegian market.
Membership benefits
It is a goal explicitly stated in the constitution of the association that membership is regarded as a mark of quality and reliability both within and outside the industry. 21 from a total of 23 Norwegian fund management companies are currently members of the association. Only management companies of mutual funds (domestic or foreign) can be members of the association, whereas distributors and custodian banks may be associated members,
Members are allowed to participate and vote in the general assembly, and to represent the industry on the association's board of directors.
Members can also participate in the various committees and working groups under the board of directors.
The administration also publishes an electronic newsletter exclusively for members. The newsletter provides members with updated information on relevant issues, such as regulatory changes, updated statistics and invitations to all events organized by the association.
Members can also request bilateral services from the administration (e.g. advice and considerations on regulation, tailored presentations etc.)
The association will administer classification of all funds under management according to the industrywide standard of fund classification. The precondition to such classification is daily reporting of net asset value to the association's database operator (Oslo Stock Exchange) according to the industrywide standard for fund information and classification.
Membership and thus classification of funds under management will enable broad distribution of fund data on the fund management companies' funds in the Norwegian market. Oslo Stock Exchange reports these data daily to the media and the government's central financial information portal and all other subscribers of daily fund information in the Norwegian market.
Membership requirements
Foreign members are only required to comply with the industry standards that are relevant to their activities in Norway, and do not conflict with the fund management company's domestic regulation.
All members are required to abide by the constitution of the association and its industrywide standards. Members are also required to report statistics on sales, redemptions and assets under management (towards Norwegian investors) in accordance with requirements specified by the board of directors.
Membership preconditions
Foreign fund management companies are welcome to join the Norwegian Mutual Fund Association. Preconditions for membership are as follows:
- Assets under management in the fund management company's mutual funds must exceed the equivalent of 100 million NOK.
- The fund management company must have conducted regular operations for a minimum of 12 months
- Acceptable results from recent on-site inspection by the fund management company's domestic regulator
Associated membership
Companies that are not able to comply with the preconditions for full membership are welcome to become associated members. There are no conditions for associate membership. Associated members have no voting rights in the general assembly, and cannot represent the industry on the association's board of directors.
If and when the preconditions for full membership are met, an associated member must apply for full membership or terminate membership of the association.
Annual fee
Foreign fund management companies pay an annual fee to the association of 55.000 NOK (2009 figures, subject to annual adjustment) if assets under management for Norwegian shareholders are less than 2 billion NOK. The fee increases by 55.000 NOK for each 2 billion NOK in assets under management for Norwegian shareholders, upwardly limited to 300.000 NOK per annum.
Foreign members have no additional liability for the operational expenses of the association. They are however required to give notification at least four months prior to years end if membership is to be terminated the following year. Otherwise the fund management company is obligated to pay the annual membership fee for the following year.
