Suspension and temporary halt to trading in quoted financial instruments on grounds of failure to publish periodic financial reports
Published: 29 June 2017
Finanstilsynet (The Financial Supervisory Authority of Norway) will suspend listings of financial instruments and order a temporary halt to trading on Multilateral Trading Facilities (MTFs) if periodic financial reports are not made public.
Suspension will normally be enforced two months after the deadline for the annual report and one month after the deadlines for interim reports. This applies to both quoted equities and non-equity securities. If reports are not forthcoming, the Oslo Stock Exchange/Oslo Axess can follow up suspension with delisting.
The deadline for disclosure of interim reports is as soon as possible after the end of the relevant period, but at the latest two months after. For the annual financial report the deadline is four months after the end of each financial year. Finanstilsynet will normally impose a violation charge on issuers if the deadline is exceeded.
This applies to issuers of securities quoted on Oslo Børs and Oslo Axess, and whose home state is Norway. If the financial reports are not submitted, Finanstilsynet will, in addition to imposing a violation charge, send the issuer an advance notice before suspension is enforced. Finanstilsynet will make a concrete assessment in each case. The Stock Exchange Act, section 25, subsection (3), empowers Finanstilsynet to decide that Oslo Børs and Oslo Axess shall suspend a financial instrument from listing.
If the financial instrument in question is also traded on a Norwegian MTF, Finanstilsynet will order a temporary halt to trading in this financial instrument at the same time as suspension is enforced, cf. the Securities Trading Act (STA), section 15, subsection (7). Furthermore, Finanstilsynet will notify the supervisory authorities of other EEA countries to enable them to follow up the suspension on regulated markets and MTFs that operate under their authority. Suspensions will be lifted once the financial reports have been published.
Pursuant to STA section 15-1, subsection (3), Finanstilsynet oversees the periodic financial reporting of issuers of quoted transferable securities. This responsibility includes overseeing that financial reports are made public within the deadlines. The reason why Finanstilsynet has now decided to enforce suspension in response to non-publication is that of late a number of issuers have published their reports unacceptably long after the deadline. Finanstilsynet wishes to strengthen confidence in the market as an efficient trading arena and at the same time contribute to information symmetry.