Finanstilsynet withdraws Terra Markets' licences to provide investment services
Finanstilsynet withdrew Terra Markets' licences to provide investment services on 12 April 2012. This action was taken after Finanstilsynet conducted an on-site inspection of the company.
Finanstilsynet has brought to light serious and systematic breaches of the Securities Trading Act's conduct-of-business provisions. Terra Markets has in many instances and over a long period provided investment advice to non-professional investors. The advice has resulted in frequent trading, with no account being taken of costs to the client. Finanstilsynet considers this advice to have run counter to client interests.
After an on-site inspection by Finanstilsynet, Terra Markets took steps to rectify rule breaches to which attention had been drawn and to reduce the likelihood of new rule breaches. However, Finanstilsynet does not consider that the steps taken by Terra Markets warrant continued operation of the company's licences under the Securities Trading Act. In Finanstilsynet's assessment the offences brought to light are of such gravity that the company's licences should be withdrawn in the interest of confidence in the securities market and investment firms. In this assessment Finanstilsynet has given particular emphasis to the fact that the breaches of the conduct-of-business rules represent a serious impairment of the confidence that consumers are entitled to place in providers of financial services.
The licence withdrawal affects no other companies in the Terra group or the Terra alliance.
Finanstilsynet's decision is in the public domain, and is available at Finanstilsynet's website
Tilbakekall av tillatelser til å yte investeringstjenester (pdf)
Deputy Director General Eirik Bunæs, tel. +47 22 93 98 20 / mobile +47 911 65 817
Head of Section Geir Holen, tel. +47 22 93 99 83 / mobile + 47 957 82 469
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Communications Director Kjetil Karsrud, tel. +47 22 93 99 34, mobile + 47 906 57 621