News / 26.01.2018

Crowdfunding – P2P lending in Norway

Author(s) Peter L. Brechan

P2P lending may require that the platform operating the lending have a license or be registered, depending on the involvement of the platform.

If lenders and borrowers are matched through the platform, the platform must be registered as a credit broker with Finanstilsynet, as the Norwegian financial regulator. The role of credit broker must be strictly adhered to in order for the platform not to be regarded as providing payment services. Payment services requires license from Finanstilsynet or a similar license passported from an EEA-country, and full AML/KYC routines.

If the platform hold funds on behalf of lenders, this is regarded as deposits and requires a banking license from Finanstilsynet or a similar license passported from an EEA-country.

If a lender is frequently active as lender, the lending may constitute license-requiring financing for such lender as bank or financial company (i.e. financial institution) from Finanstilsynet or a similar license passported from an EEA-country.

Assistance in settlement (drawdown or repayment) whereby funds go through the platform over a client (banking) account of the platform, constitutes payment services and is thus a license-requiring activity.

If you or your client are considering operating a crowdfunding platform in Norway, there are ways of setting up the operation and avoid license requirements. Please take contact with Peter Brechan for further details.