The Financial Supervisory Authority, Iceland (FME)
The Financial Supervisory Authority (FME) is an independent state authority. The FME regulates and supervises the credit and insurance market in Iceland, as well as the securities and pension market and is funded entirely by a fee levied on the entities it regulates.
The objective of FME is to have a positive impact on the development of the Icelandic financial market and contribute towards stable financial services. The core values of the FME are professionalism, results, efficiency and credibility.
The FME operates in four core divisions with approximately 45 employees: Credit market, Pension funds and UCITS, Insurance market and Securities market.
FME’s work is based on enforcement of requirements for compliance with the regulatory framework and on a constructive relationship with the parties subject to supervision. The FME also promotes corporate governance as well as sound and proper business practices.
Example of the FME activities:
- Monitoring risk, e.g. by performing stress-tests
- On-site and off-site inspections
- Collection and processing of information
- Guidelines for parties subject to supervision
- Market surveillance on the securities market
- Investigation of potential infringements
- Anti Money laundering and terrorism financing supervision
- Assessment of eligibility of managing directors and board members
- Publishing of discussion papers and relevant information material
- Formation of legislation and regulation in the financial market
- Consumer information
With increased international activities of the Icelandic financial sector, international co-operation has increasingly become more important in the daily work of the FME. The FME co-operates with other supervisory authorities, especially Nordic, as well as taking part in European collaboration of authorities and expert groups.
The FME’s website
, contains news, guidelines, discussion papers, reports and other publications issued by the Authority. The website provides access to English translation, where available, of main laws, regulations and rules that apply in the Icelandic financial sector.
Go to the FME website, click here