§ 1-3. What is a financial agreement (finansavtale), a financial service (finansiell tjeneste) and financial intermediation (finansoppdrag)
Machine-translated from Norwegian. The Norwegian text is the one that applies. Read the original in Norwegian.Norsk English العربية Polski Українська
In brief
- A financial agreement can concern a financial service, financial intermediation, payment settlement or the transfer of monetary claims.
- Financial service covers banking, credit, payments, investment and individual pensions.
- Financial intermediation is acting as an intermediary, including advice and preparatory work, and online comparison services through which you can enter into an agreement.
The text of the law (unofficial translation)
§ 1-3. Financial agreement, financial service and financial intermediation
- giving advice on or carrying out preparatory work in connection with the conclusion of agreements on financial services
- concluding agreements on behalf of a service provider or assisting in the service provider's administration or performance of agreements on financial services
- providing information on one or more financial services in accordance with the criteria selected by the customer via a website or other media, including the preparation of a ranked list of agreements comprising price and product comparisons or price discounts on a financial service, if the customer is able to conclude an agreement directly or indirectly by using a website or other media.
What does this mean?
This section explains three basic concepts that the rest of the Act builds on. A financial agreement is an agreement on a financial service, financial intermediation, a payment settlement or the transfer of a monetary claim. A financial service is everything from banking, credit and payments to investment and individual pensions. Financial intermediation is intermediary work between a customer and a service provider (the party that offers such services as a business), carried out for remuneration.
The definition of financial intermediation is broad. Intermediation covers more than getting an agreement concluded: anyone who gives advice or does preparatory work before a financial agreement is entered into is also included. The same applies to anyone who concludes agreements on behalf of a service provider, or who helps to administer and perform them. Online comparison services are covered when you as a user can yourself enter into an agreement through the service, either directly or indirectly. The text of the law expressly mentions lists that rank offers by price and product, or that show price discounts. Example: a customer uses a website that compares offers, and can go on to enter into an agreement via the site. The service may then be regarded as financial intermediation.
The concepts are used further in Chapter 1. § 1-1 sets out the general scope of the Act and refers back here. § 1-2 uses the concepts to state which chapters apply to which services, beginning with Chapter 2 applying to payment settlements and monetary claims. § 1-4 explains who is a consumer (forbruker), customer and service provider. Separate definitions exist for payment services in § 1-5, for authorisation services in § 1-6, and for credit agreements (kredittavtaler) and personal guarantee (kausjon) agreements in § 1-7. § 1-8 defines off-premises agreements, and § 1-9 establishes that the Act cannot be departed from to the detriment of a consumer. The order shows the structure: first what the Act applies to, then the concepts, then that the rules are mandatory in the consumer's favour.
- § 1-1Which agreements the Financial Contracts Act applies to
- § 1-2Which chapters of the Financial Contracts Act apply to your agreement
- § 1-4Who is a consumer, customer and service provider?
- § 1-5Payment service, payment account (betalingskonto) and other terms for accounts and payments
- § 1-6Authorisation services: payment initiation and account information