Operating licence and registration
One of the tasks of the Central Bank of Iceland is to grant legal entities and, in some instances, individuals – licences to operate in the financial market. A financial undertaking may be granted a licence to operate as:
- A commercial bank
- Savings bank
- Credit undertaking/investment bank
These undertakings are hereinafter referred to as credit institutions. A financial undertaking may also be granted a licence to operate as an Investment firm. The Central Bank also grants operating licences to the following parties:
- Insurance companies
- Electronic money institutions
- Payment institutions
- UCITS management companies
- Managers of alternative investment funds
- Debt collection agencies
- Insurance brokers (both individuals and legal entities)
Some parties are not obliged to hold an operating licence from the Central Bank but are required to register. These parties are:
- Managers of alternative investment funds below benchmark amounts
- Creditors and credit intermediaries
- Crypto-asset service providers
- Currency exchange offices
Applications for operating licences and laws governing the activities
| Activities | Laws governing the activities |
|---|---|
| Commercial banks, savings banks and credit undertakings | Chapter II of Act no. 161/2002 on Financial Undertakings. |
| Investment firms | Chapter I of Section 2 of Act No. 115/2021 on the Market for Financial Instruments. |
| UCITS Management Companies | Chapter II of Act no. 116/2021 on UCITS. |
| Insurance brokers and other distributors | Act No. 62/2019 on Insurance Distributors |
| Insurance companies | Act No. 100/2016 on Insurance Activities |
| Stock exchanges and other regulated markets | Act no. 115/2021 on Markets for Financial Instruments. |
| Pension funds | Act no. 129/1997 on the Mandatory Insurance of Pension Rights and the Activities of Pension Funds |
| Debt collection agencies | Debt Collection Act no. 95/2008. |
| Payment institutions | Act no. 114/2021 on Payment Services. |
| Electronic money institutions | Act no. 17/2013 on the Issuance and Handling of Electronic Money. |
| Managers of alternative investment funds | Act no. 45/2020 on Alternative Investment Fund Management. |
| Central securities depositories | Act no. 7/2020 on Central Securities Depositories and Settlement and Electronic Registration of Financial Instruments. |
Registration applications and laws governing the activity
| Activity | Laws governing the activities |
|---|---|
| Currency exchange centres and crypto-asset service providers | Act no. 140/2018 on Measures against Money Laundering and Terrorist Financing. |
| Creditors and credit intermediaries | Act no. 118/2016 on Mortgage Lending to Consumers. |
| Managers of alternative investment funds below benchmark amounts | Act no. 45/2020 on Alternative Investment Fund Management. |