Kredittilsynet warned Terra Securities by letter of 27 November 2007 that its licences to provide investment services could be withdrawn on account of violation of conduct-of-business rules set out in the Securities Trading Act. The above letter is enclosed.
By letter of 28 November 2007 Kredittilsynet communicated its decision to withdraw Terra Securities ASA’s licences granted under the Securities Trading Act. The decision was made as a result of an order of the Oslo Bankruptcy Court dated 28 November 2007 requiring Terra Securities ASA to undergo liquidation proceedings. Terra Securities ASA’s bankruptcy estate stated the following in a press release of 28 November 2007:
“The estate has entered into an agreement with DnB NOR Bank ASA that will ensure that the securities settlements (VPO) to which Terra Securities ASA was a party will be carried out in the normal course and within the usual guarantee provisions and normal settlement cycle (T+3).
The estate has entered into a similar agreement with DnB NOR Bank ASA where Terra Securities ASA has been registrar/account manager for issuers of bonds/certificates.
VPS Clearing ASA has, pursuant to the VPS Clearing rules, assigned to DnB NOR Bank ASA the role of temporary clearing representative.
The estate has accordingly acted to ensure that investors who traded VPS-registered financial instruments prior to the commencement of the liquidation proceedings will be handled in the usual manner.”
Kredittilsynet expects the steps taken and the bankruptcy estate’s further work to ensure a satisfactory securities settlement process for customers of Terra Securities ASA, and that the customers’ interests in general will be attended to in the best possible manner.
Attachments:
Letter to Terra Securities ASA, as of 27 Nov. 2007 (pdf) [Public version] (Norwegian)
Attachment 1 (pdf) (Norwegian)
Attachment 2 (pdf) (English)
Contact persons:
Deputy Director General Eirik Bunæs, tel. (+47) 22 93 98 20
Head of Section Eystein Kleven, tel. (+47) 22 93 98 13
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Senior Communications Adviser Arild Eide Johansen, tel. (+47) 22 93 99 94,
mobile tel. (+47) 971 52 011
