The European Systemic Risk Board (ESRB) sent warnings to five European countries and recommendations to six European countries in connection with its assessment of medium-term residential real estate (RRE) sector vulnerabilities. Iceland is one of the countries receiving such a warning, along with France, Norway, the Czech Republic and Germany.
The Slovakian insurance undertaking NOVIS has sold its life insurance product Wealth Insuring to a number of Icelandic policyholders from early 2018. Therefore, the Financial Supervisory Authority (FME) finds it appropriate to draw attention to a notification on the undertaking’s homepage where it states that NOVIS has stopped selling the Wealth Insuring product in Iceland.
The Financial Supervisory Authority (FME) Annual Report 2019 is now available in English. The substantial discussion in the Annual Report of the FME for 2019 primarily covers the period from 1 May 2018 until 30 April 2019.
On 28 June 2019, FME announced that the countercyclical capital buffer would remain unchanged in accordance with the recommendations of the Financial Stability Council on 24 June 2019.
On 20 June this year, Althingi passed a new Central Bank Act to merge the Central Bank of Iceland and the Financial Supervisory Authority into one institution as of the beginning of next year.
Today, it was announced that work has commenced on a review of the statutory framework for monetary policy, macroprudential policy, and financial market supervision, including a merger of the Central Bank of Iceland and the Financial Supervisory Authority.
On 29 June 2018, FME announced that the countercyclical capital buffer would remain unchanged in accordance with the recommendations of the Financial Stability Council on 26 June 2018.
The Financial Supervisory Authority published an interpretation on 5 July 2018 on the marketing, distribution or sale of CFDs and binary options covered by ESMA‘s measures dated 27 March 2018. The measures are based on Article 40 of Regulation (EU) No 600/2014 (MiFIR) in light of the inherent risk and complexity of CFDs and binary options causing significant financial losses for retail investors. As of August 24 2018 ESMA has agreed to renew the prohibition and exclude a limited number of products from the scope of its measure. Further information on ESMA‘s measure is available on its website.
The Financial Supervisory Authority (FME) Annual Report 2018 is now available in English. The substantial discussion in the Annual Report of the FME for 2018 primarily covers the period from 1 May 2017 until 30 April 2018. The report describes the main tasks of FME and, in particular, tasks of the supervisory divisions: Banking, Insurance and pension, Markets and business conduct and Compliance and inspections. Furthermore, it discusses the situation and developments in the financial market in 2017.
The Financial Supervisory Authority considers the marketing, distribution or sale of CFDs and binary options covered by ESMA‘s measures dated 27 March 2018 to be contrary to proper and sound business procedures and practices in securities trading according to Article 5 of Act No. 108/2007 on Securities Transactions. The measures are based on Article 40 of Regulation (EU) No 600/2014 (MiFIR) in light of the inherent risk and complexity of CFDs and binary options causing significant financial losses for retail investors.
The Financial Supervisory Authority decided on 15 May to increase the countercyclical capital buffer in accordance with recommendations from the Financial Stability Council dated 13 April 2018.
The Financial Supervisory Authority announced on 15 May an unchanged capital buffer for systemic risk and an on-going capital buffer for other systemically important financial institutions pursuant to the recommendations of the Financial Stability Council from 13 April 2018.
On
5 January 2018, FME announced that the countercyclical capital buffer would
remain unchanged in accordance with the recommendations of the Financial
Stability Council on 22 December 2017.
Further information on capital buffers.
On 17 October 2017, FME announced that the countercyclical capital buffer would remain unchanged in accordance with the recommendations of the Financial Stability Council on 9 October 2017.
The Financial Supervisory Authority has today concluded that Taconic Capital Advisors LP and its associated entities are eligible to acquire a qualifying holding in Arion banki hf. up to 33% of the banks shares and its subsidiaries Stefnir hf., Valitor hf., Vörður tryggingar hf. and Vörður líftryggingar hf., with reference to Chapter VI of the Act No. 161/2002 on Financial Undertakings and Chapter X of the Act No. 100/2016 on Insurance Activities.
Today, the Financial Supervisory Authority has concluded that Kaupþing ehf. is eligible to acquire a qualifying holding in Arion banki hf. up to 33% of the banks shares and its subsidiaries Stefnir hf., Valitor hf., Vörður tryggingar hf. and Vörður líftryggingar hf., with reference to Chapter VI of the Act No. 161/2002 on Financial Undertakings and Chapter X of the Act No. 100/2016 on Insurance Activities.
On 14 September 2017, the Financial Supervisory Authority concluded that Attestor Capital LLP and its associated entities are eligible to acquire a qualifying holding in Arion banki hf. up to 20% of the banks shares and its subsidiaries Stefnir hf., Valitor hf., Vörður tryggingar hf. and Vörður líftryggingar hf., with reference to Chapter VI of the Act No. 161/2002 on Financial Undertakings and Chapter X of the Act No. 100/2016 on Insurance Activities.
The Financial Supervisory Authority (FME) has issued rules limiting the loan-to-value ratio of new residential mortgages in accordance with Article 25(1) of Act No. 118/2016 on Consumer Mortgages. In accordance with the Rules entering into force, the maximum loan-to-value ratio will be 85% of a property's market price. However, first-time home buyers may be granted loans of up to 90% of the market price in accordance with Article 25(2) of the Consumer Mortgage Act. The purpose of the rules is to maintain financial stability in light of growing imbalances in the housing market and to strengthen the resilience of lenders and borrowers with respect to the possibility of falling property prices.
The Financial Supervisory Authority (FME) Annual Report 2017 is now available in English. The substantial discussion in the Annual Report of the FME for 2017 primarily covers the period from 1 May 2016 until 30 April 2017. The report describes the main tasks of FME and, in particular, tasks of the supervisory divisions: On-site Inspections and Securities, Off-site Supervision, and Oversight. Furthermore, it discusses the situation and developments in the financial market in 2016.
On 28 June 2017, FME announced that the countercyclical capital buffer would remain unchanged in accordance with the recommendations of the Financial Stability Council on 20 June 2017.