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NO - Circular in Norway on the marketing of AIFs to non-professional investors

On 30 May 2016, the Financial Supervisory Authority of Norway (Finanstilsynet) issued a circular about the marketing of alternative investment funds (AIF) to non-professional investors and the legal ramifications of such conduct.

On 30 May 2016, the Financial Supervisory Authority of Norway (Finanstilsynet) issued a circular about the marketing of alternative investment funds (AIF) to non-professional investors and the legal ramifications of such conduct. 

Finanstilsynet emphasises the fact that registered alternative investment fund managers (AIFM) are prohibited from marketing their funds to non-professional investors. In the newly published circular Finanstilsynet outlines the distinction between professional and non-professional investors and also provides a more detailed explanation as to what constitutes marketing. As per the Norwegian Act on the Management of Alternative Investment Funds, marketing is defined as “a direct or indirect offering or placement of units or shares at the initiative of the AIFM or on behalf of the AIFM”. The circular specifies that basically all actions are considered as marketing with the notable exception of reverse solicitation, which it defines as “passive sales” or “first approach”.