About the funding
The Board at FinKN has adopted a funding arrangement which, as of the fiscal year 2016, will apply for financial institutions within the areas of insurance, banking, finance and investment funds.
A separate means of funding has been adopted for debt collection agencies (see below).
Funding for the operation of FinKN is due in advance, and is intended to cover the expected workload of cases in the coming year. The projected workload is calculated based on historical data. The financial institutions are billed by FinKN directly.
For insurance, banking, finance and investment funds, the funding consists of the following components:
1. Case fee.
The fee shall reflect the costs of use of the complaints settlement procedure. This entails that those companies that receive the highest number of complaints must pay proportionately more. Cases that are registered with FinKN and are concluded at the complaints board level in year 00, are used as a basis for funding the operating year 02. This means that the billing of case fees for 2019 is based on the amount of cases registered per company in 2017, and the amount of concluded cases at the complaints board level the same year.
The number of cases per financial institution is stated in the FinKN annual report for 2017. FinKN does not distribute the basis for calculation of billing. This means that cases which are included in the basis are not identified with either the name of the complainant or the case number.
For all cases that are included in the basis for calculation, an amount is set, called the case fee. This set amount will be same for all cases. For cases that are reviewed at both secretariat and complaints board level, the amount will be doubled. The amount is set in conjunction with the annual budgetary procedure. As of 2019 the case fee is set at NOK 9.350.
2. Base amount.
All financial institutions affiliated with FinKN must pay an annual base amount, provided they conduct business that could lead to complaints being filed with FinKN.
The base amount is incurred even if no complaints are filed. The base amount is determined by the Board in conjunction with the annual budgetary process. As of 2019 the base amount is set at NOK 8.800.
The reason for the base amount is that every year means are invested in infrastructure etc., which help make FinKN a well-functioning complaints body. All affiliated companies must contribute to this through funding.
3. Affiliation fee.
Financial institutions that wish to be affiliated with FinKN, but are not a member of one of the contracting parties, pay a one-time affiliation fee. The amount is determined by the Board. As of 2019 the fee is NOK 40 000 (ex. VAT) per financial institution.
For debt collection agencies, the funding consists of the following components:
The Board at FinKN has adopted a distinct funding arrangement, which, as of fiscal year 2016, will apply for affiliated debt collection agencies.
The main points are as follows:
Invoicing is to be split in two.
The first invoicing will normally take place in January, and accounts for 75 % of the budget. Billing is separated into categories determined by the agency’s number of employees (FTE) as of December 31 the previous year. Agencies reporting 0 FTEs are automatically placed in category 1. All agencies that have obtained a license, even there at this time are no actual FTEs associated with the operation, will be billed.
The categories are as follows:
Category 1: 1 – 2 employees
Category 2: 3 – 5 employees
Category 3: 6 – 10 employees
Category 4: 11 – 20 employees
Category 5: 21 – 50 employees
Category 6: 51 – 100 employees
Category 7: More than 100 employees
Category 8: Public institutions
The second invoicing will normally take place in the second quarter, and accounts for the remaining 25 % of the budget. This billing is determined by the number of cases registered per agency. A case reviewed at both the secretariat and complaints board level will be counted as two cases.
When registering with FinKN, the agency will be a charged a one-time affiliation fee. All agencies that obtain a license from the Financial Supervisory Authority of Norway, with permission to engage in debt collection, are required to join FinKN. The size of the affiliation fee is determined by the number of FTEs in the agency (see the categories above).