About us

GENERAL TERMS AND CONDITIONS FOR TRADING IN FINANCIAL INSTRUMENTS THROUGH KRAFT FINANS AS
(hereinafter referred to as “Kraft Finans” or the “Company”)

Kraft Finans AS
Larsamyrå 18, Trim Towers
P.O. Box 1063
4313 Sandnes
Phone: 51 97 74 40

Introduction

These terms and conditions have been prepared in accordance with the Securities Trading Act (VPHL) and associated regulations. The Terms and Conditions supersede in their entirety previous versions of the Terms and Conditions. Terms defined in the Securities Trading Act have a similar meaning when used in these terms and conditions.

The Investment Firm’s clients are deemed to have accepted these terms and conditions as binding on them when, after receiving the terms and conditions, the client submits orders, enters into agreements or carries out transactions with the Investment Firm.

The company’s general terms and conditions are only available in a Norwegian version.

Customers can communicate with Kraft Finans in Norwegian, Swedish and English, both verbally and in writing. Requests in other languages may be rejected.

1. WHAT SERVICES THE ENTERPRISE IS AUTHORISED TO PROVIDE

Kraft Finans is under the supervision of the Financial Supervisory Authority of Norway, which has its premises at Revierstredet 3, Oslo.

The Investment Firm is authorised to provide the following investment services; Section 2-1, paragraph 1:

• 1: Receiving and transmitting orders
• 2: Order Execution
• 4: Portfolio Management
• 5: Investment Advice
• 7: Placement of financial instruments where the Investment Firm does not provide a full underwriting guarantee

The Investment Firm is authorised to provide the following related services; Section 2-6, subsection 1

• 1: Safekeeping and administration of financial instruments on clients’ behalf, including cash and collateral management, as well as other management services
• 3: Advice on capital structure, strategy, etc.: advice and services in connection with mergers and acquisitions
• 5: Preparation and dissemination of investment recommendations, financial analyses and other forms of general recommendations regarding transactions in financial instruments
• 6: Services associated with underwriting

Kraft Finans operates cross-border operations with the following services to Luxembourg and Sweden:

• Investment services, cf. vphl. Section 2-1, paragraph 1:
  • 1: Receiving and transmitting orders
  • 4: Portfolio Management
  • 5: Investment Advice
• Associated services, cf. vphl. Section 2-6, paragraph 1:
  • 5: Preparation and dissemination of investment recommendations, analyses and general recommendations

The Investment Firm is also authorised to be registered in the Norwegian Securities Register, the Register of Shareholders and/or the Register of Unit Holders instead of the beneficial owner, cf. Section 4-10 of the Public Limited Liability Companies Act, Section 6-3 of the Securities Register Act, Section 13-2 of the Securities Funds Regulations, cf. Section 4-10 of the Securities Funds Act, and Section 6-3 of the Securities Register Act.

Kraft Finans’ advice is supplier-dependent. This applies not only to the active management of various mandates, but also to advice related to other products and services is considered supplier-dependent. Any use of words such as independent, not bank-owned or others in marketing material shall not be understood in any other way than that the Investment Firm is not part of a group or owned by one or more of its product suppliers.

2. WHAT THE TERMS AND CONDITIONS APPLY

These terms and conditions apply to the Investment Firm’s investment services and services relating to transactions in instruments related to financial instruments. The terms and conditions apply to all these services, unless it is stated in the relevant section or part thereof that the condition only applies to specifically specified instruments or investment services.

The services mentioned in section 1 are also regulated by the Securities Trading Act, the Central Securities Depositories Act, the Limited Liability Companies Act, the Sale of Goods Act, the Contracts Act, etc. In addition, the Investment Firm is obliged to comply with the rules of good business practice laid down for the individual markets.

In these terms and conditions, “banking day” means any day banks in Norway are open.
In these terms and conditions, “stock exchange day” means any day that the Norwegian stock exchange is open.

3. AUDIO RECORDINGS AND OTHER DOCUMENTATION

The Investment Firm will make audio recordings of telephone conversations in connection with the provision of investment services. Sound recordings will be kept by the Investment Firm. Sound recordings must be stored for a period of five years in accordance with applicable law calculated from the date of recording, and will normally be deleted after the expiry of the imposed retention period. Audio recordings of the individual customer will be found by searching, including the time of the call, the incoming and outgoing telephone number and the employee of the Investment Firm who made the call. The company may be required to disclose sound recordings to public authorities and others who may require this pursuant to law. In addition, audio recordings may be disclosed to out-of-court complaints bodies, including in connection with the processing of complaints on behalf of the customer; Clause 29 of the Terms and Conditions of Business.

Other companies that cooperate with the Investment Firm on the provision of relevant investment services have a similar obligation to make audio recordings of conversations with the client to the extent that such investment services are provided over the phone. Documentation of communication through communication channels other than telephone in connection with the provision of investment services will be retained by the Investment Firm for a period consistent with applicable law.

4. RELATIONSHIP WITH PROFESSIONAL AND NON-PROFESSIONAL CLIENTS

In accordance with vphl. obligation to classify its clients into customer categories, retail clients, professional clients and eligible counterparties, respectively. Provisions have been laid down in the vphl. and regulations on how the categorisation should take place. The Investment Firm will inform all clients of which category they are classified into.

A qualified counterparty means:

• Investment firms
• Credit institution
• Insurance company
• Mutual funds and mutual fund management companies
• Pension funds and management companies for pension funds
• Commodity Derivatives Traders
• Enterprises that meet two of the three following conditions:
  • balance sheet greater than EUR 20 million
  • net sales greater than EUR 40 million
  • equity greater than EUR 2 million
• Public authorities
• Central banks
• Supranational organisations

Professional clients mean:

• Eligible counterparties
• Institutional investors whose main activity is to invest in financial instruments, including special purpose vehicles for securitisation.

All other customers, including all natural persons, are generally considered non-professional customers. The classification has an impact on the scope of customer protection. However, the firm has decided that clients who are reclassified as professional clients retain client protection in line with the requirements for retail clients.

Customer protection The Investment Firm ensures non-professional and professional clients imposes, among other things, stricter requirements for information and reporting to clients. Furthermore, the Investment Firm has, in accordance with vphl. the obligation to collect information about the client in order to assess whether the service or the financial instrument/product in question is suitable or appropriate for the client, referred to in regulations as the suitability test and the appropriateness test. Customer protection is also important for the scope of these tests as well as for the assessment of what will constitute “best execution” when executing trades for the customer.

The Client may apply to the Investment Firm to change the client classification. Information about such reclassification and the consequences of this can be obtained from the Investment Firm. These terms and conditions apply to eligible counterparties, professional clients and non-professional clients, however, in such a way that eligible counterparties and professional clients are considered to have special prerequisites for assessing the individual markets and investment alternatives or trades, as well as the advice provided by the Investment Firm. Eligible Counterparties may not rely on any terms and conditions set out to protect the retail client.

5. THE CUSTOMER’S RESPONSIBILITY FOR THEIR OWN COMPETENCE, AUTHORISATIONS, ETC.

The customer undertakes to comply with the legislation and the rules, terms and conditions that apply at any given time to the individual market or the individual marketplace on which transactions are made. The same applies to settlement and clearing through the individual settlement or clearing houses. The Client guarantees that its own trading and settlement takes place in accordance with and within the licences, authorisations and expertise of both a public and private law nature that apply to the Client’s trading in financial instruments. The Client shall, at the request of the Investment Firm, document such authorisations, etc.

If the client is a foreign company, the Investment Firm reserves the right, at the client’s expense, to require the submission of a reasoned legal opinion regarding, among other things, the client’s competence to enter into the transaction in question.

The Client shall provide the Investment Firm with an overview of the person(s) who may place orders or accept trades on behalf of the Client. Trade or acceptance by these is binding on the client unless the Investment Firm was not in good faith with regard to the individual person’s authorisations.

The Client is responsible for keeping the Investment Firm updated at all times with regard to who can place orders or accept trades for the Client. The Client is bound by the orders or the acceptances given to them, unless the Investment Firm has not acted in good faith with regard to the individual person’s authorisations. The Investment Firm will not accept authorisations that set limits for the individual client’s trade, unless this has been agreed in writing. The Client undertakes to provide complete and correct information about its own financial position, investment experience and objectives that are relevant to the requested services. In the event of changes in financial situation, assumptions and/or objectives, the client is obliged to notify the company without undue delay.

The Client understands that the Investment Firm will use the information provided by the Client as a basis for its assessment of whether the service or financial instrument/product is suitable or appropriate for the Client, and will generally not conduct its own investigations. Furthermore, the client understands that if the Investment Firm is not provided with sufficient information, the Investment Firm will not be able to determine whether the service or financial instrument/product is appropriate or suitable for the client.

In the case of investment advice or active management, the client will then be informed that the service or instrument in question cannot be provided. In relation to the other investment services, the client will in such cases be informed that the information provided to the Investment Firm is insufficient and that the service or product is then to be regarded as inappropriate. If, despite such a warning, the customer still wants the service or product, it will still be able to be carried out.

The Investment Firm is obliged to define so-called target groups for the various products distributed by the Investment Firm. This means that the Investment Firm must decide whether a client should receive marketing and be able to invest in specific products or not. In relation to marketing, customers who are defined within the various groups basic, informed and advanced will receive marketing according to the assessed level they are as an investor.

The assessment is based on the investments the customer has previously made or accumulated, as well as the number of years in which a broker or advisor has been used. Even if a client is considered in a category for receiving marketing of certain products, it shall not be considered that the product is automatically suitable if the Investment Firm has sent such marketing. The company will assess suitability in each case based not only on knowledge and experience, but also the client’s goals and financial position. In the case of marketing, it may also be considered that certain groups should not receive information about certain products, so-called negative selection. Customers who are defined in the basic category will therefore not receive marketing material that is assessed to only apply to the categories informed and advanced.

The different categories are divided according to the following criteria:

Basic: the investor possesses basic knowledge of relevant products that are regulated and has standardized documentation in accordance with the regulation of the products and who can thus make an informed decision related to investing in such products. For example, mutual funds.

Informed: the investor possesses average knowledge of relevant products that are relevant, and can make an informed decision based on available prepared documentation about the product and familiarized themselves with relevant risk factors. An informed investor also has some experience with financial advice or brokerage.

Advanced: the investor has good knowledge of relevant products and transactions that are relevant, An advanced investor also has experience with financial advice, brokerage or discretionary management.

The client also undertakes to ensure that the funds and financial instruments covered by the individual assignment are free of encumbrances, such as collateral, security rights (liens), attachments, etc. The same applies to cases where the customer acts as an agent for a third party.

6. RISK

The Client understands that investing in and trading in Financial Instruments and other related instruments is associated with a risk of loss. The invested capital can increase or decrease in value. The value of the financial instruments depends on fluctuations in the financial markets that the Investment Firm cannot control.

Historical value development and return cannot be used as an indicator of future performance and return on financial instruments. For more detailed information on the characteristics of the various financial instruments as well as on the risk associated with trading in various financial instruments, reference is made to the product information for each product (prospectus, fact sheets, brochures or other information). The Client must evaluate the risk involved in the instrument and market in question.

The Client should refrain from making investments in and trading in Financial Instruments and other related instruments if the Client is not aware of the risks associated with such investment or trading. The Client is encouraged to seek advice from the Investment Firm and other relevant advisers and, if necessary, seek supplementary information in the market before the Client makes his/her decision. All trades carried out by the Client after advice has been obtained from the Investment Firm are at the Client’s own risk and at the Client’s own discretion and decision. In any event, the Investment Firm assumes no responsibility for the advice provided if the client wholly or partially deviates from the advice given by the Investment Firm. The Investment Firm does not guarantee any specific outcome of a client’s trade.

7. WHICH MARKETPLACES THE TRADE WILL TAKE PLACE ON

Clients’ orders will be executed both inside and outside regulated markets. It should be noted that the Investment Firm’s activities will occasionally be related to unlisted financial instruments that must be traded outside a regulated market. Orders relating to listed financial instruments will be forwarded to investment firms that are members of the stock exchange and will be executed by the investment firm in question.

8. NOMINEE REGISTRATION (NOMINEE ACCOUNT)

The company is authorised by the Financial Supervisory Authority of Norway to be listed as a nominee in the mutual fund’s register of unit holders. This means that Kraft Finans may be listed as the owner of the mutual fund units subscribed for by the customer in the relevant unitholder registers. Furthermore, this means that Kraft Finans can open a client account on behalf of the customers.

Kraft Finans is obliged to keep the client’s funds separate from the Investment Firm’s own funds and other clients’ funds at all times by separate registration with the Investment Firm.

By entering into the customer agreement, the customer accepts that Kraft Finans may be listed as the manager of the customer’s holdings of units in mutual funds in the various mutual funds’ unit owner registers, including client accounts. The customer will at all times have full access to its holdings of units in mutual funds and cash in a client account registered with Kraft Finans.

9. ORDERS AND ASSIGNMENTS – CONCLUSION OF AGREEMENT

a. Submission and acceptance of orders or assignments

Orders or assignments from the customer can be submitted orally by telephone, in writing or electronically. The Investment Firm is deemed to have accepted the order or assignment when it or this has reached the Investment Firm, unless otherwise agreed. Audio recordings are made of all the company’s phone calls.

The Investment Firm is obliged to store all communication from the client, such as letters, e-mails, audio recordings, etc., which contain orders or indications of orders. These documents will be catalogued and stored for a period of time in accordance with applicable legal requirements on a storage-secure medium without access to anyone other than those who, in order to safeguard the functioning of the scheme, have a legitimate need for access to such material.

Audio recordings must be stored so that it is possible to search for the time of the call, the incoming and outgoing telephone number and the name of the employee who received the order/indication.

The Investment Firm will not be obliged to execute orders or assignments that the Investment Firm assumes may result in a breach of public law laws or rules laid down for the marketplace(s) in question.

b. Assignment period

The customer’s order regarding subscription, sale or redemption is forwarded electronically or via other media directly to the relevant trading platform or manager/issuer. The customer does not have the opportunity to withdraw the order after it has been conveyed and registered by the recipient unless otherwise agreed.

For orders/assignments related to trading in negotiable securities and derivative contracts with negotiable securities as the underlying instrument, the order/assignment applies on 1 trading day (i.e. until the end of the assignment day) and lapses thereafter, unless otherwise agreed or stated for the relevant order type or order specification. For other assignments, the duration of the assignment is agreed separately. The assignment date is the date on which the client’s assignment/order to the Investment Firm to buy or sell financial instruments through or to/from another Investment Firm has been received by the Investment Firm. In cases where the Investment Firm initiates a trade, the assignment date is considered to be the day the Investment Firm contacts the client and receives acceptance for the assignment regarding the purchase or sale of the financial instruments in question.

There may be other deadlines for certain products/product suppliers, such deadlines will be stated in the relevant product information/agreement with the product supplier.

The assignment/order may be revoked to the extent that it has not been executed by the Investment Firm, cf. nevertheless the first paragraph with regard to the transmission of orders relating to fund units.

c. Processing of orders and assignments

The Investment Firm will seek to ensure the best possible conditions for the execution of the assignments received within the duration of the engagement period. The Investment Firm will forward orders to other brokers and fund management companies who will execute the order and carry out the settlement.

The Investment Firm shall not enter into an agreement as a counterparty to a customer and shall exclusively pass on all order assignments to other undertakings. The Investment Firm reserves the right to combine the client’s orders with orders from other clients, persons or companies that are or are not affiliated with the Investment Firm.
Aggregation with customer orders will not occur unless it is unlikely that the aggregation will generally be to the disadvantage of the customer. However, it should be noted that aggregation can be detrimental to a single customer order on an isolated basis. Aggregation of customer orders with trading on Kraft Finans’ own account shall not take place unless this is for the benefit of the customer. Orders from customers who normally act on behalf of third parties, i.e. for their employer or other natural or legal person, will be rejected if the customer does not clearly state who the order is being made on behalf of when submitting the order. If the client submits an order both on his own account and on behalf of his employer or other natural or legal person, the Investment Firm will give priority to the person represented by the client.

d. Detailed trade rules

The firm is not a member of the Oslo Stock Exchange, but may pass on any orders in listed financial instruments to other investment firms with stock exchange membership. The terms and conditions for the execution of such transactions will be set out in the terms and conditions of the investment firm with which Kraft Finans places the order. However, Kraft Finans will be responsible for the dissemination itself.

10. SETTLEMENT OF FINANCIAL INSTRUMENTS IN NORWAY

The firm will not be responsible for settlement itself, but will forward orders that will then be submitted to other investment firms for execution.

11. NOTIFICATION OF AGREEMENTS AND COMPLETED ASSIGNMENTS – CONTRACT NOTE AND NOTICE OF AMENDMENT (VPS)

The Investment Firm shall, by means of a contract note or in some other manner, inform the client of an agreement entered into on behalf of the client and the terms on which the transaction has been concluded. The notification shall be given no later than the first working day after the Investment Firm received the information from the investment firm or fund management company that executed the transaction, and will be communicated orally by telephone or sent to the client’s specified e-mail or postal address. This does not apply if the information is sent directly to the customer from the executing company. The fund management company’s subscription and redemption of units is not the responsibility of Kraft Finans.

The Investment Firm reserves the right to correct obvious errors in the contract note, confirmation, etc. Such correction must be made as soon as the error is discovered. Delivery of financial instruments registered with VPS is also confirmed by a change notification from VPS. At the client’s request, the Investment Firm will inform the client of the status of orders placed by the client.

12. COMPLAINTS BETWEEN THE FIRM AND A CLIENT WHO IS NOT AN INVESTMENT FIRM

If the client has not received a contract note or other confirmation within three stock exchange days and within seven stock exchange days for clients with a foreign address after the agreement has been entered into or after the end of the assignment period, the client must notify the Investment Firm no later than the end of the fourth and eighth stock exchange days after the agreement has been entered into or after the end of the assignment period.

The client shall, immediately upon receipt of the contract note or other confirmation, check it and shall, on the same day as receipt or no later than the end of the next stock exchange day – if a complaint could not be submitted within normal office hours on the day of receipt – notify the relevant unit of the Investment Firm if he wishes to claim that any of the provisions of the contract note/confirmation are in conflict with the order, the assignment or the contract entered into. If delivery to the client of transferable securities registered with VPS has not taken place on the settlement date and the client has made the necessary funds available to the Investment Firm, the client must immediately declare cancellation to the Investment Firm if the client wishes to invoke the delay as a basis for terminating the agreement. However, this is so that the declaration of cancellation will not have any effect if the customer receives fulfilment within two trading days after such declaration of cancellation has been received. During this period, the Client is not entitled to enter into a coverage agreement at the expense and risk of the Investment Firm.

“Immediately” in the preceding paragraph means the same day or, if a complaint or objection could not be submitted within normal office hours, no later than the end of the next trading day. The deadline is calculated from the earliest:

• the time when the customer became or should have become aware that the delivery has not taken place by means of access to the VPS account, by means of an electronic confirmation system, by notification from the nominee or in any other way,
• the time at which the notification of change from VPS arrived at, or in accordance with the time of ordinary posting, should have arrived at the address provided by the customer.

If payment to the client has not been made within the time stipulated in the agreement and the client has delivered the relevant transferable securities or made them available to the Investment Firm, the client must, as soon as he has ascertained or should have established that settlement has not been received, declare cancellation to the Investment Firm if the client wishes to invoke the delay as a basis for terminating the agreement. The customer can only cancel the agreement if the delay is significant. In the case of the purchase or sale of financial instruments through the Investment Firm, the general rules on the invalidity of agreements apply correspondingly to the relationship between the buyer and the seller. If the customer wants to claim that an agreement is not binding due to invalidity, the customer must object to this immediately after the customer became aware of or should have become aware of the circumstances invoked as a basis for the invalidity. (In all cases, the objection must be submitted within six months of the conclusion of the agreement.) Such an objection will have such effect in relation to the Investment Firm as follows from the general rules on the invalidity of agreements. Verbal complaints or objections must be immediately confirmed in writing. Partial delivery to the customer does not entitle him to cancel the agreement unless the customer has made an express reservation about full delivery. For agreements on trading in foreign exchange (currency spot), the complaint deadlines must be calculated on the basis of banking days and not stock exchange days. If the customer has not complained within the time stated above, the right of complaint is considered to have lapsed.

13. RIGHT OF WITHDRAWAL

All sales of financial instruments, including fund units, take place either from a fixed place of business or by distance selling. In the case of sales from a fixed place of business, the customer does not have the right of withdrawal. The Client also does not have the right of withdrawal for distance selling of Financial Instruments. This is because the value of the financial instruments, including fund units, depends on fluctuations in the financial markets over which Kraft Finans has no influence, and which may occur during the withdrawal period.

14. COMPLAINTS BETWEEN INVESTMENT FIRMS

If delivery of transferable securities registered with the VPS has not taken place on the settlement date and the Investment Firm has made the necessary funds available to the other investment firm, the Investment Firm is entitled to enter into a coverage agreement if the Investment Firm immediately notifies the other investment firm that the Investment Firm will invoke the delay as a basis for entering into a coverage agreement. “Immediately” means as soon as possible and before the end of the first trading day after the settlement date.

The coverage agreement shall be made as soon as possible after the notification, however, so that the other enterprise has the right to make subsequent delivery within three – 3 – hours after the Investment Undertaking’s notification has reached the other undertaking. Coverage agreements must be made at market prices.

Any capital loss under this coverage agreement will be borne by the other investment firm, which will not be entitled to any gain. If the Investment Firm’s buying client has declared a cancellation, the Investment Firm shall immediately notify the other investment firm if the Investment Firm wishes to invoke the delay as a basis for terminating the agreement with the other investment firm.

If a declaration of termination from the Investment Firm’s buying client subsequently takes effect in accordance with the rules in section 11, the Investment Firm may terminate the agreement with the other investment firm if the Investment Firm immediately declares the termination to the other investment firm after this has been clarified. If the client’s cancellation entails an obligation for the Investment Firm to compensate the client’s losses, the Investment Firm may claim a corresponding amount of compensation from the other investment firm.

15. TRADE ABROAD, INCLUDING SAFEKEEPING OF CUSTOMERS’ ASSETS

For trading in and settlement of foreign financial instruments, reference is made to the trading rules and settlement or delivery terms laid down in the country or by the marketplace where the financial instruments are bought or sold. The Client understands that settlement and provision of collateral in foreign markets may entail that the Client’s assets that have been submitted for settlement or as collateral are not kept separate from the foreign investment firm(s) used by the Investment Firm and/or its settlement representatives’ own funds.

It is the responsibility of the Investment Firm to provide relevant information to the client about, including the legal regulation of, how clients’ assets are treated in the relevant markets. The Client understands that, after receiving such information, he/she bears the risk of his/her own assets that have been transferred to foreign banks, investment firms, settlement agents, clearing houses, etc., in the form of settlement or collateral, and that the Investment Firm’s liability to the Client for such assets is limited in accordance with the relevant country’s or market rules. In any case, the company does not assume any liability beyond what will follow under Norwegian law.

16. BREACH

The customer is deemed to have breached its obligations under these terms and conditions when, among other things:

1. financial instruments or money has not been delivered/made available within the settlement deadline or the client does not fulfil any other material obligation under the terms and conditions of business,
2. the customer enters into a special agreement with its creditors for payment deferral, becomes insolvent, initiates debt negotiations of any kind, suspends its payments or is placed under bankruptcy proceedings or public administration, or
3. The customer winds up its business or significant parts thereof.

In the event of default, the Investment Firm has the right to:

1. Declare all unsettled trades as defaulted and unexecuted assignments as cancelled and terminated,
2. Use to offset all of the Investment Firm’s receivables against the client from other transactions, including claims for commission, disbursements for taxes and duties, claims for interest, etc., and expenses or losses as a result of the client’s breach of one or more obligations to the Investment Firm, in respect of any receivables the client has against the Investment Firm at the time of default – regardless of whether the claims are in the same or different currencies. Claims in foreign currency must be converted to NOK according to the market rate at the time of default.
3. Carry out, at the expense and risk of the client, what the Investment Firm deems necessary to cover or reduce losses or liability as a result of agreements entered into for or on behalf of the client, including reversal of transactions.
4. Claim reimbursement of the costs incurred by the Investment Firm as a result of the client’s default, including expenses incurred in connection with loans of financial instruments, interest and other late payment fines. In addition, the provisions of the Sale of Goods Act on expected (anticipated) breach, including cancellation in the event of such breach, apply.

In the event of default as mentioned in section 12, the Investment Firm’s remedies for breach of contract are exhaustively regulated in section 12. In the event of other default by an investment firm, which is a counterparty to the Investment Firm, the Investment Firm may apply the above-mentioned remedies for default. Particular attention is drawn to the fact that default in respect of the investment firm or management company that receives orders for execution will be governed by the guidelines that apply to them.

17. INTEREST IN THE EVENT OF DEFAULT

In the event of the Investment Firm’s or the client’s default, interest is payable corresponding to the default interest rate in force at any given time, cf. Act No. 100 on Interest on Late Payment, etc. of 17 December 1976, unless otherwise specifically agreed.

18. FEES

When entering into a customer agreement with Kraft Finans, the customer accepts the Investment Firm’s current price list. Updated prices are available upon request and will also appear in the investment documents relating to the relevant investments. When using Kraft Finans’ investment services, subscription fees, advisory fees and custody fees may apply.

The size of the fees will vary depending on the amount invested by the client at any given time. The more detailed calculation basis for the fees is set out in the investment documents associated with the individual investment.

The Investment Firm may charge the client for advisory fees and custody fees in the following order of priority:

• Deduct the cash portion in the customer’s account for liquid investments (does not apply to accounts under the active management service, which have separate terms and conditions).
• If the cash portion does not cover the fee, the Investment Firm may take one or more of the following actions:
• Redemption of financial instruments to cover fees exceeding NOK 100. This is done through an equal percentage divestment of all financial instruments in the portfolio, so that the portfolio composition is maintained.
• Sending an invoice to the customer for outstanding fees.

Kraft Finans assumes that all fees are exempt from VAT in accordance with the current interpretation of the VAT Act. Should the Investment Firm be required to invoice VAT – in whole or in part – as a result of existing or new rules, the VAT will be in addition to the annual fee.

19. INDEMNIFICATION

The company’s remuneration will be subject to individual agreement depending on the size of the investment and engagement. The remuneration comes either through subscription and establishment costs/commissions or via annual margins on ongoing investments as well as so-called profit splits. The Investment Firm may also calculate special remuneration for consultancy assignments.

Brokerage or set-up cost is a remuneration that is added to the value of the financial instruments that the client buys or sells. Brokerage is normally stated as a percentage. Alternatively, remuneration can be calculated as an exchange rate difference, i.e. a mark-up on the buyer’s price or a deduction from the selling price. Receipt of subscription/portfolio commission means that the Investment Firm may receive a distribution fee from the supplier or manager in the form of a percentage of the consideration the client must pay to the product supplier, or a percentage of the ongoing management fee the product provider restricts from the client.

Kraft Finans may receive portfolio income in the form of so-called return commission, typically on mutual funds. In these product groups, the Investment Firm’s fee will be paid by the supplier as a return commission of what the supplier charges the customer in any case. In other products, the Investment Firm’s annual advisory fee will be in addition.

Common to all products within the Investment Firm’s product range is that any return commission that the Investment Firm receives is refunded to the customer. For other product groups, Kraft Finans will be able to receive between 0 per cent and 100 per cent of the start-up costs, which are normally between 1 per cent and 5 per cent for the customer. More specific information about the costs associated with the specific products will appear in the prospectus or other product information that is prepared and presented in connection with the products. The Investment Firm reserves the right to make deductions from the customer’s receivables for costs as mentioned in the first paragraph, as well as for any taxes, sales taxes, etc. In cases where a transaction is not concluded, the Investment Firm will not require remuneration unless otherwise specifically agreed.

20. AGENTS (INTERMEDIARIES), TRUSTEES AND SETTLEMENT AGENTS

If the customer submits orders or assignments as an agent, nominee, settlement agent or for a third party, the customer and the person he acts on behalf of or for are bound by these terms and conditions. The Client is jointly and severally liable to the Investment Firm for the obligations of this third party to the extent that the obligations are the result of the Client’s orders or assignments. If the customer uses a nominee, settlement bank or other intermediaries, this is required to be regulated in a separate agreement. The use of such intermediaries does not relieve the end customer of its liability under these terms and conditions.

21. LIABILITY AND EXEMPTION FROM LIABILITY

The Investment Firm is liable to the client for the fulfilment of purchases or sales it has concluded on behalf of or with the client. However, this does not apply if the customer has approved the other party in advance. The Investment Firm assumes no responsibility for settlement if the client does not make the necessary funds and financial instruments available to the Investment Firm on or before the settlement date.

Nor does the Investment Firm accept any liability for indirect damage or loss incurred by the client as a result of the client’s agreement(s) with a third party wholly or partially lapsing or not being properly performed. The Investment Firm or its employees are otherwise not liable for the client’s losses as long as the Investment Firm or its employees have complied with general due diligence requirements in the provision of advice or execution of orders or assignments.

In cases where the Investment Firm has used credit institutions, investment firms, clearing houses, nominees or other equivalent Norwegian or foreign assistants, the Investment Firm or its employees will only be liable for the acts or omissions of these assistants if the Investment Firm has not complied with general requirements for due diligence in the selection of its assistants. If assistants as mentioned in the previous sentence have been used on the orders or requirements of the client, the Investment Firm assumes no responsibility for errors or breaches of contract by them. In any event, the Investment Firm is not liable for damage or loss caused by obstruction or other circumstances beyond the Investment Firm’s control, including power failures, faults or breaks in electronic data processing systems or telecommunications networks, etc., fire, water damage, strikes, legislative amendments, government orders or similar circumstances. Where trading has been executed on a Norwegian or foreign stock exchange on the orders or requirements of the client, the Investment Firm will not be liable for any errors or defaults committed by that stock exchange or any associated clearing house, and the client hereby acknowledges that each stock exchange/clearing house may have laid down its own rules for regulating its liability towards stock exchange members; customers etc. with a greater or lesser degree of disclaimers.

Nor is the Investment Firm liable for cases where delay or non-appearance is due to the suspension or discontinuation of monetary or securities settlement as a result of circumstances beyond the Investment Firm’s control.

22. TERMINATION OF THE BUSINESS RELATIONSHIP

Trades or transactions that are pending settlement at the end of the business relationship shall be closed and completed as soon as possible. Upon termination of the business relationship, the Investment Firm shall carry out a final settlement in which the Investment Firm is entitled to set off against the client’s receivables for the Investment Firm’s receivables, including brokerage, taxes, duties, interest, etc.

23. INFORMATION BLOCKS AND CONFLICTS OF INTEREST

The Investment Firm will seek to avoid conflicts of interest arising and has guidelines and rules to ensure that the areas of activity in the Investment Firm operate independently of each other in order to avoid conflicts of interest arising. The Investment Firm has a special duty to ensure that the interests of the client take precedence over the interests of the Investment Firm’s employees and other associated persons, and that certain clients are not unduly favoured at the expense of other clients. If conflicts of interest cannot be avoided, the Investment Firm will as far as possible ensure that the client is treated fairly and correctly. If the Investment Firm has a special interest in addition to ordinary earnings, e.g. as a result of its own positions of a certain extent in the financial instruments to which the advice relates, it will be informed of this interest. This, as well as the special confidentiality provisions that apply, may mean that the Investment Firm’s employees who are in contact with the client may be prevented from using or are unaware of information that is available in the Investment Firm and that may be relevant to the client’s investment decisions.

In some cases, the client’s contact person(s) in the Investment Firm will not be able to provide advice with regard to specific investments. In such cases, the company cannot justify why it cannot give advice or execute a specific order. The Investment Firm and its employees may have their own interests in relation to the transactions or investments the Client will make. This may result from, among other things:

1. advisory assignments for the investment object in question,
2. the provision of guarantees or participation in subscription consortia;
3. consulting assignments for other customers,
4. employees’ own positions.

At the request of the client, the Investment Firm will provide a more detailed, written explanation of the Investment Firm’s guidelines for handling conflicts of interest.

24. MEMBERSHIP OF THE INVESTMENT FIRMS’ GUARANTEE FUND

The firm is a member of the Investment Firms’ Guarantee Fund; cf. Section 9-38 and associated regulations. The Guarantee Fund covers claims arising from the Investment Firm’s inability to provide coverage for claims arising from the Investment Firm’s treatment of clients’ funds and financial instruments and which are held, administered or managed by the Investment Firm on behalf of clients in connection with investment and ancillary services.

25. ANTI-MONEY LAUNDERING MEASURES

When establishing a business relationship, the client shall, through identity checks, etc., document his or her identity and specify and document any powers of attorney or representation, so that the Investment Firm can at all times fulfil its obligations in accordance with rules and guidelines as a result of anti-money laundering measures, as these apply at any given time.

For corporate clients, the client is obliged to inform the Investment Firm of any changes in the ownership structure that result in a change in who is considered to be beneficial owners under applicable law. After establishing the customer relationship, the customer will be subject to ongoing money laundering control in line with applicable legal requirements. The Client is aware that the Investment Firm is or may be obliged to provide public authorities with all relevant information relating to the client relationship or individual transactions. This can be done without the customer being informed that such information has been provided.

26. DUTY OF DISCLOSURE TO AUTHORITIES – DUTY OF CONFIDENTIALITY

Notwithstanding the statutory duty of confidentiality, the Investment Firm will disclose information about the client, the client’s transactions, deposits in client accounts and other matters to the authorities that may require this pursuant to laws or regulations. The Investment Firm will also be able to provide information about the customer to the marketplaces, clearing houses, etc. that may require this pursuant to laws, regulations or other rules laid down for these bodies.

27. AMENDMENTS AND AMENDMENTS

The Investment Firm reserves the right to supplement or amend these terms and conditions. Additions or changes take effect from the time they are notified to the customer in writing. The notification will be sent by e-mail to the customer’s e-mail address, or sent to the customer by post if the customer does not use e-mail. Amendments or amendments will not have effect on orders, trades, transactions, etc. submitted or executed prior to the date of notification of the additions or amendments.

28. NOTICES AND POWERS OF ATTORNEY

The customer’s written communications must be sent by letter, e-mail or other electronic communication. Notices sent by e-mail shall be confirmed by sending the original letter, unless otherwise stated in these terms and conditions. When establishing the business relationship, the Client shall provide the Investment Firm with his/her address, telephone number and any electronic addresses, and shall subsequently keep the Investment Firm informed at all times of any changes in the said addresses and telephone number. The same applies to cash accounts in banks and securities accounts in VPS or other equivalent rights registers.

The customer’s address, telephone number and e-mail address, as well as the persons at the customer’s premises who are authorised to act on behalf of the customer, are set out in a separate appendix to these terms and conditions. Any changes must be notified to the Investment Firm immediately in writing.

29. INTERPRETATION

The terms and conditions apply to the above-mentioned services and in the event of any conflict with legislation that may be deviated from by agreement, the terms and conditions shall prevail.

Where reference is made to legislation, other rules or these terms and conditions, this shall be understood as these laws, rules and conditions apply from time to time.

30. CUSTOMER COMPLAINTS

The Client may lodge a complaint with the Investment Firm. It should be clear that this is a complaint. The firm’s procedure for handling customer complaints is available on kraftfinans.no.

Foreign clients, including Norwegians resident abroad, who can invoke laws or regulations that provide protection against prosecution by the Investment Firm in relation to their obligations to the Investment Firm, waive this right to the extent that this is not in direct conflict with the relevant laws or regulations.

31. JURISDICTION – APPLICABLE LAW – DISPUTE RESOLUTION

Any disputes in connection with the relationship between the client and the Investment Firm or these terms and conditions shall be resolved in accordance with Norwegian law with Sør-Rogaland District Court as the (non-exclusive) venue.

Customers with foreign jurisdiction waive any right to oppose the submission of lawsuits related to these terms and conditions before Oslo District Court.

Clients with a place of jurisdiction abroad may, regardless of the above, be sued by the Investment Firm in the event of such a place of jurisdiction if the Investment Firm so wishes.

32. THE PERSONAL DATA ACT

The company, represented by the manager, is the data controller pursuant to the Personal Data Act. Personal data will be processed in accordance with applicable legislation.

See more information about the processing of personal data in Kraft Finans’ privacy policy.

Information on managing conflicts of interest

Kraft Finans is an investment firm that offers a wide range of products and services to a large and diverse clientele. When providing investment services, Kraft Finans shall always act in the best interests of the client. However, it may arise from time to time that Kraft Finans will find itself in situations where a customer’s interests conflict with (i) Kraft Finans’ interests (including employees of Kraft Finans) or (ii) another customer’s interest. In such situations, Kraft Finans will take the necessary precautions to prevent conflicts of interest, as well as to minimize potential harm to customers.

Kraft Finans has prepared instructions on how to identify potential conflicts of interest, and furthermore how to handle conflicts of interest so that customers do not suffer. These instructions are implemented in the company.

The instructions for the identification and management of conflicts of interest primarily seek to ensure that employees who provide investment services with conflicting interests provide these services with the necessary independence. This is to protect the interests of customers. Kraft Finans has implemented general measures to achieve this, including:

• Instructions for the proper exchange of information between different parts of the enterprise, including a general duty of confidentiality related to what the employee learns about the affairs of others.
• The company’s incentive structure contains discretionary assessment criteria, and is not based solely on sales volume or profitability.
• Instructions for ensuring that investment advice provided to the investor is appropriate for the recipient of the advice.
• Code of Conduct to prevent Kraft Finans’ employees from obtaining benefits at the expense of Kraft Finans’ operations.
• Information about potential conflicts of interest in both being an active manager and distributor of the Kraft Funds, including how this is taken care of in the fee model.
• Information that all return commission paid from the product supplier to Kraft Finans will be passed on to customers in full.

If Kraft Finans’ instructions for identifying and managing conflicts of interest are not sufficient to safeguard the customers’ interests in a satisfactory manner, Kraft Finans will inform customers in writing of possible conflicts of interest. Kraft Finans will not forward orders on behalf of the customer until such information has been provided.

Further details regarding Kraft Finans’ instructions for identifying and managing conflicts of interest are available upon request.

This Cookie Policy was last updated on July 31, 2023 and applies to citizens and residents with lawful permanent residence in the European Economic Area and Switzerland.

1. Introduction

Our website, https://kraftfinans.no (hereinafter: “Website”) uses cookies and other related technologies (for simplicity, related technologies are also referred to as “cookies”). Cookies are also placed by third parties we have engaged. In the document below, we inform about the use of cookies on our website.

2. What are cookies?

A cookie is a simple small file that is sent along with pages of this website and is stored by your browser on your computer’s hard drive or other device. The data stored there may be returned to our servers, or to the servers of the relevant third parties, during a subsequent visit.

3. What are scripts?

A script is a piece of code that is used to ensure that our website works correctly and interactively. This code is executed on our server or on your device.

4. What is a web beacon?

A web beacon (or pixel tag) is a small, invisible piece of text or image on a web page that is used to monitor traffic on a web page. To achieve this, some data about you is stored using a web beacon.

5. Cookies

5.1 Technical or functional cookies

Some cookies ensure that certain parts of the website work properly and that your user preferences remain known. By placing functional cookies, we make it easier for you to visit our website. This way, you do not have to repeatedly enter the same information when you visit our website and, for example, the items remain in your shopping cart until you have paid. We may place these cookies without your consent.

5.2 Cookies for statistics

We use statistics cookies to optimize the website experience for our users. With these statistics cookies, we gain insight into the use of our website. We ask for your permission to place cookies for statistical purposes.

5.3 Advertising cookies

On this website, we use cookies for advertising so that we can gain insight into campaign performance. This happens based on a profile we create based on your behavior on https://kraftfinans.no. With these cookies, you, as a visitor to the website, are associated with a unique ID, but these cookies will not create a profile based on your behavior and interests in order to display personalized ads.

5.4 Marketing/tracking cookies

Marketing/tracking cookies are cookies or any other form of local storage, which are used to create user profiles to display advertising or to track the user on this website or across multiple websites for similar marketing purposes.

Because these cookies are marked as tracking cookies, we will ask for your permission to place them.

5.5 Social media

On our website, we have included content from Facebook and LinkedIn to promote pages (e.g. “like” or “pin”) or share (e.g. “tweet”) in social media such as Facebook and LinkedIn. The content is embedded with code from Facebook and LinkedIn and also uses cookies. This content may store and process some information for personalized marketing purposes.

Please read the privacy policies of the various social networks (which may be updated regularly) to read what they do with your (personal) data that they process using these cookies. The data that is retrieved is anonymized as much as possible. Facebook and LinkedIn are located in the United States.

6. Placed cookies

7. Consent

When you visit our website for the first time, we will show you a pop-up with an explanation about cookies. As soon as you click “Save”, you consent to our use of all cookies and plug-ins as described in the pop-up and cookie statement. You can disable the use of cookies through your browser, but please note that our website may no longer function properly.

7.1 Manage your consent settings

8. Enabling/disabling and deleting cookies

You can use your browser to automatically or manually delete cookies. You can also specify that certain cookies cannot be placed. Another option is to change your browser settings so that you receive a notification each time a cookie is placed. For more information about these options, see the instructions in the Help section of your browser.

Please note that our website may not function properly if all cookies are disabled. If you delete all cookies in your browser, they will come back again if you consent to it when you visit our website again.

9. Your rights with respect to your personal data

You have the following rights with respect to your personal data:

• You have the right to know why your personal data is needed, what will happen to it, and how long it will be stored.
• Right of access: You have the right to access your personal data that is known to us.
• Right to rectification: You have the right to add, correct, and have your personal data deleted or blocked whenever you wish.
• If you give us your consent to process your data, you have the right to revoke your consent and to have your personal data deleted.
• Right to portability of your data: you have the right to request all your personal data from the controller and transfer it in its entirety to another controller.
• Right to object: You may object to the processing of your data. We comply with this unless there are legitimate reasons for processing.

To exercise these rights, please contact us. Please see the contact details at the bottom of this Cookie Notice. If you have a complaint about how we handle your data, we would like to hear from you, but you also have the right to lodge a complaint with the supervisory authority (the Data Protection Authority).

10. Contact Details

For questions and/or comments about our Cookie Policy and this Statement, please contact us using the following contact information:

Kraft Finans AS
Trim Towers
Larsamyrå 18
4313 SANDNES
Norway
Nettted: https://kraftfinans.no
E-mail: resepsjon@kraftfinans.no
Phone: 51 97 74 40

This Cookie Notice was synced with cookiedatabase.org on 26. August 2024.

1. Background

Kraft Finans strives to promote transparency, integrity, rights and responsibility in all parts of our business, including where we operate, with our employees, investors, stakeholders and partners.

At Kraft Finans, we create long-term value for our customers. In this context, we take into account, among others, the UN Principles for Sustainable Investment (UNPRI) and the Norwegian Corporate Governance Committee (NUES).

2. Purpose

The purpose of this policy is to describe Kraft Finans’ approach to sustainable investments, including environmental, social and governance issues (so-called ESG issues).

Kraft Finans believes that a good focus on sustainable investments contributes to a higher long-term risk-adjusted return on investors’ funds by identifying undesirable risk factors as well as finding profitable opportunities.

Kraft Finans recognizes that the financial industry is an important part of the solution for achieving the Paris Agreement’s climate goals and the global work to reduce carbon emissions, among other things.

We will therefore seek to promote the work on ESG among other players in the industry as well.

3. Ownership and responsibility

The CEO is ultimately responsible for ensuring that the policy is complied with.

The policy is also anchored in the board of directors of Kraft Finans, which will review the policy at least on an annual basis.

The policy has been made known to all employees of Kraft Finans and will be published on the company’s website.

Together with the fund managers, the Chief Investment Officer is responsible for ensuring that the policy is integrated into all investment analyses, decision-making processes and active ownership (where relevant).

4. How is ESG integrated into our product range and investment activities?

4.1. Investment decision

Kraft Finans advises our clients and invests itself through the Kraft Funds in various funds, equities and bonds from unlisted and listed issuers.

ESG is an integral part of Kraft Finans’ investment process, where we map how the companies’ operations are in accordance with general environmental, ethical and social norms. In particular, UNPRI’s principles will be used as a guideline.

ESG factors are an integral part of the investment decision in all asset classes, but the access to information and analysis varies depending on the type of investment.

4.2. Exclusion/exclusion

It is of fundamental importance that companies in which the Kraft Funds invest comply with international laws, norms and conventions.

The Kraft Funds will therefore not invest in:

• Companies that contribute to serious and systematic violations of human rights and international law.

• Companies that produce or sell controversial weapons, including nuclear weapons, landmines, cluster munitions, biological and chemical weapons.

• Companies involved in serious environmental destruction.

• Companies involved in systematic corruption and financial crime.

• Companies that are excluded by Norges Bank from the investment universe of the Government Pension Fund Global or are on the Bank’s observation list.

The Chief Investment Officer is responsible for keeping a list of the companies that have been excluded. This list can be made available to investors in the funds upon request. Should it turn out that a company that is part of the customers’ investment portfolio and/or Kraft Finans is invested in violates any of the above, an attempt will be made to either rectify the situation and/or sell out within reason.

4.3. Active ownership

Through its indirect ownership, Kraft Finans seeks to improve relevant ESG conditions in the companies in which it is invested, where this is possible given its ownership position. Kraft Finans will therefore seek to enter into dialogue with the companies and focus on the management of significant ESG risks and opportunities.

5. Conflict of interest

Each of the funds of the Kraft Funds has its own mandate and is managed independently of each other. Nevertheless, there may be cases where the fund managers choose to invest in it

same company. This may mean that several funds have interests and voting rights in the same company. Each fund is free to vote in accordance with what the manager believes is in the best interests of the unitholders. Therefore, there should be no conflict of interest between the funds with regard to the exercise of voting rights. The fund managers in Kraft Finans are subject to strict proprietary trading rules, and no conflicts of interest shall arise between the fund and the portfolio manager with regard to the exercise of voting rights.

Kraft Finans AS is committed to keeping this website up to date and with correct information. Should you still experience something that is not correct or outdated, we will be grateful if you notify us of this. Please state where on the site you found this. We will then deal with this as soon as possible. Please send your response by e-mail to: resepsjon@kraftfinans.no.

We are not liable for losses resulting from inaccuracies or incompleteness, nor for losses resulting from problems caused by or connected with the dissemination of information over the Internet, such as disruptions or interruptions. When using web forms, we strive to limit the number of mandatory fields to a minimum. For losses resulting from the use of any data, advice or ideas provided by or on behalf of Kraft Finans AS via this website, Kraft Finans AS accepts no liability.

Use of this website and all its components (including forums) is subject to the following terms of use. Even modest use of the website implies that you have knowledge of and accept these terms.

Responses and privacy inquiries sent by email or using an online form will be treated in the same way as letters. This means that you can expect a response from us within 1 month at the latest. In case of complex requests, we will let you know within 1 month if we need a maximum of 3 months.

Any personal data that you provide to us in connection with your feedback or request will only be used in accordance with our Privacy Policy.

Kraft Finans AS shall do everything possible to protect the systems against any form of illegal use. Kraft Finans AS shall implement appropriate technical and organisational measures for this purpose, taking into account, among other things, the latest technology. However, it shall not be held liable for any loss, direct and/or indirect, suffered by a user of the Website, arising as a result of the unlawful use of the systems by a third party.

Kraft Finans AS does not take responsibility for the content of websites where a hyperlink or other reference is made. The terms and conditions of Products and services offered by third parties are the sole responsibility of the relevant third party.

All intellectual property rights to content on this website have been obtained by Kraft Finans AS.

Copying, distributing or any other use of material is not permitted without the written permission of Kraft Finans AS, except and only to the extent otherwise stipulated by provisions of law and regulations (such as the right to quote), unless the content in question provides otherwise.

If you have any questions or problems with the accessibility of this website, please contact us.

INSTRUCTIONS FOR ACHIEVING THE BEST RESULTS IN FUND MANAGEMENT

1. Purpose and legal basis

Instructions for achieving the best result are based on sections 2-28 and 2-29 of the VPH Regulations, Section 10-7 of the VPH Regulations.

The company manages the Kraft Funds. This means, among other things, that the Investment Firm makes investment decisions, and implements them, on behalf of the mutual funds. The Investment Firm shall act in the best interests of the mutual funds, including assessing how the individual trade can be executed in the best possible way to achieve the best possible result for the clients.

The requirement for the best result can be divided into two elements: 1) how the trade is to be executed and 2) where the trade is to be executed. The firm will normally place execution orders on behalf of the mutual funds with other brokerage firms pursuant to Section 2-29 of the VPF Regulations.

2. Assessment of the best outcome when executing investment decisions

The company shall act in the best interests of the mutual funds managed by the company when decisions are made to act on behalf of the mutual funds. The Investment Firm shall seek to achieve the best possible result for the mutual funds with regard to the mutual fund’s objectives, investment policy, characteristics of the financial instruments included in the order, price, costs, speed, probability of execution and settlement, size, nature and other relevant factors.

The above assessment will be complex and situational. In general, Kraft Finans AS will place the most emphasis on the following:

•Price
•Costs
• Characteristics of the financial instrument in question
• Ability to complete the transaction within a reasonable time
• Characteristics of the relevant trading systems/trading venues

2.1 Price

All Kraft Funds aim to generate the highest possible relative return. The price that can be achieved when trading in financial instruments on behalf of the mutual funds is therefore of importance. The company will normally attach importance to the price that can be achieved by assessing the best result.

2.2 Costs

Transaction costs will have an impact on mutual funds’ returns. The Investment Firm will normally attach importance to the costs of the transaction when assessing the best result.

2.3 Characteristics of the Financial Instrument in question

When trading in some fixed-income securities, it can be difficult to find a well-functioning market of buyers and sellers. Good relations and mutual trust between broker and manager can therefore be important in order to ensure the best overall result for the mutual fund.

2.4 Opportunity to have the trade executed within reasonable

Regardless of the characteristics of the financial instrument in question, the manager may face challenges in connection with the trading of larger items. In special cases, it may be in the unitholders’ interest to accept a lower price or higher costs in order to complete the transaction within a reasonable time. Such cases must be documented.

2.5 Characteristics

at the relevant trading systems/trading venues For trading of shares, the Investment Firm is connected to an electronic trading platform, where the cost is significantly lower than for direct trading with other brokers. When deemed appropriate, the nominee will engage in electronic trading. Trading in fixed-income securities normally takes place through direct contact with a broker or on a trading platform. Compliance and the General Manager shall regularly check the guidelines and measures established in accordance with the sections above, Section 2-28 (4) of the VPF Regulations. In addition, the Investment Firm must document that the orders have been placed in accordance with section 2-28 (5) of the guidelines.

3. Assessment of the best result when placing orders with other companies

Kraft Finans AS shall act in the best interests of the mutual funds it manages when, on behalf of the mutual funds, it places orders for execution with other brokerage firms

Kraft Finans AS shall be conscious in its choice of broker connections to ensure correct securities settlement and the best results. Management must only use brokerage connections that have been approved by the CEO and investment manager. When choosing a broker connection, the manager shall take into account the probability of execution, the size of the order and the nature of the order.

When approving new broker connections, the following must be considered:
•History
•Solidity
• Orderly and ethical conduct
• Market position
• Cost of trading

Approved broker connections will be assessed on the following basis:
• Order execution
•Follow up
• Operational matters aimed at fund management

If a manager believes that a brokerage connection does not satisfy Kraft Finans AS’s expectations for the best result, the manager may request that the brokerage connection in question be removed from the list of approved brokerage connections. Such requests are sent to the CEO and the Chief Investment Officer, who make a decision on whether to remove them from the list of approved brokerage connections. The Head of Compliance, Control and Risk Management shall be informed of such requests, as well as the decision that has been made.

The Investment Firm shall document and regularly monitor the policies and measures established in accordance with the sections above, including the quality of order execution at the specified brokerage compounds. Any defects must be rectified.

These guidelines shall be reviewed at least once a year and shall remain in force until they are replaced by revised guidelines.

The company’s report under the Transparency Act for 2024

Introduction Kraft Finans AS shall each year carry out due diligence assessments in accordance with the Transparency Act and publish an account of the assessments.

The purpose of the Transparency Act is to promote companies’ respect for fundamental human rights and decent working conditions.

This report includes the company’s duty to account for the due diligence assessments the company has carried out in 2024. In the report, the company also describes the measures that have been assessed and implemented to reduce the risk of negative consequences the company’s activities and business contacts may have on fundamental human rights and decent working conditions.

Contact

Inquiries about this report can be directed to:

Kraft Finans AS
Ann Dorte Vormestrand Head and Legal Compliance
adv@kraftfinans.no

Reporting obligation The company is headquartered in Sandnes, Rogaland and is domiciled in Norway.

The company is a private limited company and is therefore subject to the reporting obligation.

About the company’s activities
The company’s organization and area of operation

Kraft Finans AS was founded in 2001 and is a Norwegian investment firm that offers financial advice to wealthy private individuals, companies and foundations. The company’s largest owner is Bjørn Maaseide through his wholly-owned company BFBK Finans AS.

Kraft Finans AS offers the services of investment advice, receiving/brokering of orders, order execution, active management and facilitation. In 2018, the company established the Kraft Funds. The first fund out was Kraft Global, and in 2019 and 2022, the fixed income funds Kraft Høyrente and Kraft Nordic Bonds were also launched. Kraft Global was discontinued in 2023. In 2024, the Kraft Investment Grade fixed income fund was launched.

We have offices in Tromsø, Trondheim, Ålesund, Oslo, Bergen, Sandnes and Kristiansand.

Kraft Finans AS manages and advises approximately 2500 customers who have invested a total of about NOK 8 billion in asset management.

An organisation chart for the company is attached to this report.

Internal guidelines

The company has its own procedures for how we anchor our work on human rights and decent working conditions. The procedure covers the company’s work to meet the requirements set out in the Transparency Act. The company’s routines were anchored and adopted by the company’s board of directors on 22 February 2023. The procedure has been communicated to the company’s employees and is available on the company’s website. The procedure is part of the company’s collection of instructions, which was last discussed by the company’s board of directors on 15 May 2024.

The procedure describes how the company conducts its due diligence assessment and assessment of measures. The procedures also contain information about the company’s whistleblowing channels that are intended to help uncover negative consequences for fundamental human rights and decent working conditions related to the company’s activities, and how such information is followed up.

Goal and progress

Overall on goals and progress

We are constantly working to assess the risks associated with the company’s activities and the use of our business partners (suppliers and business partners 1 ). Furthermore, the company works continuously to implement measures to achieve the goals set by the company. See sections 3 and 4 of the report for guidance on the work carried out during the reporting year.

Goals for the coming year

We have set ourselves several concrete goals for the future.

The due diligence assessment

General information about the company’s focus for the due diligence assessment – methodology

Kraft Finans AS conducts ongoing assessments of the risk of negative consequences for fundamental human rights and decent working conditions related to the company’s activities and business relationships. The company continuously surveys human rights violations and violations of decent working conditions related to the company’s activities.

In the mapping work, Kraft Finans AS uses a digital platform developed by Ignite Procurement AS. The platform simplifies the implementation of due diligence assessments in line with the requirements of the Transparency Act. Through the platform, Kraft Finans AS has gained a systematized overview of first-tier suppliers, business partners and other well-known subcontractors. Based on this overview, the platform has made initial assessments of the risk of negative impacts on fundamental human rights and decent working conditions. The steps in this assessment are described below:

1. Based on supplier data obtained from accounting data, order confirmations and ERP systems, a complete overview of the company’s first-tier suppliers is created. In the platform, the company has manually created business partners and other well-known subcontractors. Through the platform, the overview of the company’s first-tier suppliers is updated continuously.

2. In the platform, supplier information is enriched through third-party cooperation with ENIN and Infobel. Through the platform, information and financial information is collected about the company’s suppliers such as industry codes (NACE) and company structure.

3. Through steps 1 and 2, the company gets an overview of first-tier suppliers, business partners and other known subcontractors, with associated supplier information.

4. The classification tool in the platform has made an initial risk classification of the company’s first-tier suppliers, business partners and other known subcontractors based on classification rules created in the platform. The company has established the following 1 Suppliers and business partners defined terms in the Transparency Act, cf. section 3 first paragraph (d) and (e). The term business contacts is used as a collective term for these two classification rules relevant to the company’s supply chain: Geography, industry, and type of product and service. Through the classification tool, suppliers who meet defined risk parameters have been classified according to high, medium and low risk of negative impact on fundamental human rights and decent working conditions.

5. As part of the risk mapping, the Company has, through the Platform, sent out custom questionnaires to defined business contacts to obtain additional information. The company has also used the platform to request documentation and certifications from first-tier suppliers, business partners and other well-known subcontractors.

6. Based on the findings in items 4 and 5, Kraft Finans AS shall assess what measures to implement to investigate potential negative consequences for fundamental human rights and decent working conditions.

In the analysis tool in the platform (interactive Dashboard), analyses of the supply chain have been prepared based on supplier data, the outcome of the risk classification and information obtained from the supply chain. Section 3.2 below shows the following information generated by the analysis tool in the platform:

a. Number of first-tier suppliers, business partners and other known subcontractors, with associated supplier information

b. An overview of the company’s first-tier suppliers, business partners and other known subcontractors who have been submitted to and have responded to questionnaires relevant to the company’s due diligence assessment

c. An overview of the Company’s first-tier suppliers, business partners and other known subcontractors who have disclosed:

a. That their activities are covered by the Transparency Act
b. That the due diligence assessment of the enterprise has been carried out in accordance with the requirements of the Transparency Act
c. That the result of the due diligence assessment is set out in a report in line with the requirements of the Transparency Act

d. A more detailed classification of the company’s first-tier suppliers, business partners and other known subcontractors based on the risk profiles high, medium and low.

e. An overview of first-tier suppliers, business partners and other known subcontractors where measures have been implemented, cf. step 6 above

Relevant conditions for due diligence related to the company’s activity and business conditions include:

• The company’s operational context
• The company’s business model
• Position in the supply chain
• Type of product and services

In the following, we will account for the significant risk of negative consequences for human rights and decent working conditions that have been uncovered through the company’s due diligence assessments. The report also includes any established violations of human rights and decent working conditions.

The company’s supply chain2 and business partners

The company has commercial relationships with 517 first-tier suppliers in the reporting year. The company’s suppliers are located in the following countries/geographical area3 :

The result of the due diligence assessment

In the 2024 due diligence assessment, we have chosen to base the selection on all suppliers with low, medium and high risk companies, in contrast to 2023 where low-risk suppliers were not included. In 2023, 7 suppliers responded to the survey. Now in 2024, 29 suppliers have responded. This shows that more suppliers this year have better knowledge of the Transparency Act and see the value of answering. Measures for 2025 will be to reach more people in the supply chain, and preferably those with the highest ranked risk.

The company has not uncovered or identified any findings in the reporting year:

Measures to Stop, Prevent or Limit Negative Consequences

In the following, the company will give an account of the measures the company has implemented to prevent, limit or stop the identified consequences and risks identified in the section above.

We will implement the following measures based on the survey:

Monitoring of measures – implementation and results

Introduction

We work continuously to monitor potential violations of human rights and violations of decent working conditions based on the OECD model.

Routines for monitoring

The CEO of Kraft Finans AS has the overall responsibility for monitoring potential breaches and implemented measures. Kraft Finans AS has the following routines for monitoring:

• We monitor the implementation and impact of the company’s internal commitments, activities and due diligence objectives.

• We review reports that are published about the financial industry and also follow industry surveys.

• We include experience and feedback the company has acquired in the due diligence assessments. This is to improve the process and results in the future

Based on these measures, we have a progress plan for the recovery work that we keep updated. The progress plan follows the system in point 3.

Communication with affected stakeholders and rights holders

The company has not uncovered violations of human rights or decent working conditions in the reporting year. Nor has the company uncovered a significant risk of breaches/negative consequences as mentioned.

Recovery and replacement

The company has not uncovered any cases that require recovery in the reporting year.

1.1 Legal basis and purpose
Legal basis: Section 9-16 (4) of the Norwegian Securities Trading Act; cf. Chapter 15 of the Financial Institutions Regulation.

Purpose: Kraft Finans shall have a remuneration scheme that promotes good and efficient management and control of the Investment Firm’s risk, counteracts excessive risk-taking and helps to avoid conflicts of interest. Furthermore, it is important to have competent and motivated employees. It is important to retain expertise and develop a correct culture related to quality in the Company in the future.

1.2 Allowances covered

Remuneration includes salary and other remuneration in the form of: (i) payments in kind, (ii) bonuses, (iii) allotment of shares, subscription rights, options and other forms of remuneration that are linked to shares or the development of the share price in the Investment Firm, (iv) pension schemes, (v) severance pay schemes, and (vi) all forms of variable elements of the remuneration or special benefits that are in addition to basic salary.

1.3 Remuneration Committee

The company has appointed a special remuneration committee. The committee consists of two board members and an employee representative, who have sufficient knowledge and experience of risk analyses to be able to assess whether the remuneration policy is appropriate.

The Remuneration Committee will be presented with proposals for changes to the Investment Firm’s remuneration scheme, they will be involved in the assessment related to the determination of the pot for variable remuneration and they will consider the practice report before it is presented to the board.

1.4 Key risk factors of importance for the remuneration scheme

Identification of risk associated with the Investment Firm’s activities is of importance for the design of the remuneration scheme, including the assessment of the scope of persons, the process for awarding annual variable remuneration and the assessment of any reduction or loss of variable remuneration.

In line with the Investment Firm’s ICAAP report, the Investment Firm is exposed to the following types of risk in its operations:

(i) Credit risk: The Investment Firm has a conservative risk profile related to credit risk, cf. also the discussion in the Investment Firm’s ICAAP.
(ii) Settlement risk: The Investment Firm is exposed to ordinary settlement risk when trading in company units or financial instruments.
(iii) Operational risk: This is the most significant risk to which the enterprise is exposed. Risk-reducing measures are primarily related to the development of compliance and the internal control function.

The CEO shall annually assess whether changes in the Investment Firm’s risk exposure as specified in the ICAAP should entail adjustments to the remuneration scheme, and if so, propose this to the Board of Directors.

1.5 Basis for variable remuneration

Kraft Finans will share the profits created with the employees. We include the entire value chain in the Investment Firm and are based on the Investment Firm’s overall bottom line. The variable remuneration shall be discretionary.

1.6 Criteria for variable remuneration

1.6.1 Quality index
It is the customers we live off and for. Therefore, for example, a significant improvement in the quality index for individual employees and offices will count positively in the allocation of bonuses, and vice versa.

1.6.2 Quality
The quality of the work the firm does is one of the areas where an investment firm is very vulnerable. Over time, a lack of quality can lead to time, customer complaints and direct violations of laws and regulations. Reports from Compliance will count towards the assessment and allocation of variable remuneration.

1.6.3 Profitability
The enterprise’s total profitability provides the basis for what can be paid in variable remuneration. It will be important to have efficient operations throughout Kraft Finans, including each individual department.

1.6.4 Cooperation and efforts
Collaboration to create good results should pay off, we have many opportunities and tasks every day and one of our most important tasks as an investment firm is to serve our clients in an efficient and good way. The company will emphasize collaboration and total value creation. The customer must always be served where it is most appropriate for the customer, and it is important that subjective factors and considerations for one’s own department’s results do not determine this. The management of Kraft Finans will consult with all managers in the Investment Firm in the assessment of this criterion.

1.7 Allocation of annual variable remuneration to individual employees

1.7.1 Time
Settlement of the total bonus limit will take place annually in connection with the processing of the annual accounts.

1.7.2 Process for awards
The CEO assesses the individual employee in relation to the criteria set out below and proposes the year’s variable remuneration for each employee. The Chairman of the Board proposes variable remuneration to the CEO.

The board makes the final decision on the above-mentioned matters. The final decision is communicated to the employee through the award letter.

1.7.3 Criteria for granting variable remuneration
Variable remuneration shall be assessed on the basis of an overall assessment, in which financial and non-financial matters relating to the person in question, the relevant business unit and the enterprise as a whole shall be assessed.

With regard to the individual’s efforts, the following must be considered, among other things:

(i) Client acquisition,
(ii) external or internal activities of particular value to the Investment Firm,
(iii) extraordinary work effort, great client/employee responsibility or similar, (iv) the employee’s ability and willingness to contribute to the competence enhancement of his or her employees,
(v) the number of customer complaints relating to the individual or employee’s business unit;
(vi) proven breaches of internal guidelines or other relevant regulations shall result in reduced variable remuneration,
(vii) When assessing the individual’s variable remuneration, financial conditions and changes in sustainability- and risk-adjusted performance related to the business unit in question and the enterprise as a whole shall also be taken into account, including the enterprise’s costs related to liquidity and capital needs. The enterprise’s results in the previous year shall be taken into account in this assessment.

The final variable remuneration will be determined on the basis of a discretionary overall assessment of the above-mentioned factors.

Variable remuneration for employees with control tasks shall be independent of the result in the business area they control.

The board shall establish criteria for each of those covered by the scheme based on function-specific objectives.

The assessment on which the annual determination of variable remuneration is based shall be documented in writing.

1.7.4 Balance between fixed and variable remuneration
When assessing variable remuneration for individual employees, the board shall ensure that a balanced ratio is achieved between fixed remuneration for work and variable remuneration. The fixed part of the remuneration shall be sufficiently high to enable the Investment Firm to refrain from paying the variable part of the remuneration.

In the more detailed assessment of the balance requirement, the board will take into account, among other things, the following factors:
(i) That variable remuneration shall not encourage excessive risk-taking in light of the Investment Firm’s risk exposure. However, it must be taken into account that the risk exposure in the Investment Firm is primarily related to operational risk that the employees have little influence on or will have an incentive to influence, cf. above.
(ii) That the Investment Firm must be able to maintain a flexible cost structure in the Investment Firm, i.e. that it must be taken into account that fixed remuneration for work must also be paid in years with low earnings.

1.8 Annual Practice Report

The implementation of the scheme shall be reviewed by Compliance at least once a year, with reporting to the Board of Directors of the Investment Firm.