AMWatch

Norwegian FSA needs clear definition of "value-adding", Morningstar analyst argues

As part of MiFID II, Norwegian fund managers, like the rest of Europa, must have value-adding services to receive commissions from others than the customers. The Norwegian FSA, however, has yet to give a clear definition of what "value-adding" means.

Thomas Furuseth, Analyst and Editor of Morningstar.no | Photo: PR: Morningstar

The Financial Supervisory Authority of Norway (FSA) has stated that the Norwegian investment firms must add value to receive compensations from others than their customers. This is also known as kickbacks. This is a consequence of MiFID II.

However, the FSA has no clear definition of what "value-adding" means, according Thomas Furuseth, analyst at research firm Morningstar:

"In my opinion it's difficult to interpret "investment firms must add value". Most firms have defined themselves as value-adding, but offer the same level of service, similar product offerings and use a platform that offer mutual funds. Should that be considered sufficient as value adding? I'm a bit uncertain," he says.

Read the whole article

Get 14 days free access.

No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from AMWatch

Oil fund 2021 returns almost reach 15 percent

The three last years have been the best in the sovereign wealth fund's history, in NOK terms. CEO Nicolai Tangen and Deputy CEO Trond Grande don't expect the same good times going forward, however.

Further reading

Latest news

Jobs

Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch