Entitlement Compensation Rules - Norway

06.10.2014

Bonds

Market compensation basis:Settlement Date
Automatic Compensation Managed by Local CSD:No
Restriction on custody events/transaction types:Not applicable
Service offered by CBL:Not applicable

Equities

Market compensation basis:Settled position on the Record Date: refer to Additional information below
Automatic Compensation Managed by Local CSD:Yes
Restriction on custody events/transaction types:No restriction
Additional information:
If the trade has Settlement Date on/before the last cum-date, the shares will settle with the full entitlement to the dividend.
The dividend payment is made through the VPS system but, in order to calculate the dividend entitlement, it is assumed that all trades settle on time (that is, on a T+2 basis).
It is on this basis that the VPS system makes the disbursement of the dividend payment and any deviation from this will require manual amendment.
If a T+2 trade has not settled on time, manual adjustments to the entitlement are possible in the VPS system. Manual adjustments done within the three days after the Record Date are based on the Trade Date. Cum-trades will be adjusted if settled within the relevant three days.
Ex-trades with a shorter settlement cycle than T+2 will, as a general rule, not be adjusted except upon request. However, this is only possible if the trade settles within the next three days after the Record Date (the so-called "entitlement correction days"); any corrections after these three days must be processed as a market claim.
Service offered by CBL:Adjustment is performed based on information received from the depository.