Norway's Department of Finance proposes allowing fund managers to use individually negotiated revenue sharing agreements with large clients

Norway's Department of Finance has put forward proposed amendments to the Securities Funds Act that would allow managers of securities funds to enter revenue-sharing agreements with larger clients, subject to conditions. The proposal would create a new way to tailor pricing for clients with particular bargaining power beyond the unit class structure that currently governs differentiated pricing under Norwegian law. Under the proposal, revenue-sharing agreements would have to be individually negotiated, with terms set and adapted case by case. They would also need to comply with existing requirements, including European Economic Area rules implemented in Norwegian law and standards on good business practice set out in law and regulation. The department presents the change as part of its work on the operating conditions for Norway's fund sector, and says the proposition follows a consultation on such agreements prepared by Finanstilsynet at its request.