The Prime Minister, Minister of Finance, Minister of Economic Affairs, governor of the Central Bank and director of the Financial Services Authority signed an agreement establishing the committee on financial stability. This agreement is based on a previous agreement between the ministries and institutions from 2006 which addresses cooperation in the field of financial stability and financial crisis prevention.

A co-operation agreement on cross-border financial stability, crisis management and resolution between the finance ministries and other relevant ministries, central banks and financial supervisory authorities of Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden has been signed. The agreement enhances preparedness to handle cross-border financial stability concerns in the financially integrated Nordic-Baltic region. It also establishes the first European cross-border stability group.

A new Act on insurance activities, No. 56/2010 (Lög um vátryggingastarfsemi), was recently enacted in Iceland to replace the earlier Act No. 60/1994. The Act covers direct insurance activities involving non-life insurance and personal insurance in addition to reinsurance of any kind; as before, supervision of insurance activities is entrusted to the Financial Supervisory Authority (FME).

The Financial Supervisory Authority in Iceland (FME) now has a new phone number: 520 3700. The fax number of FME has also changed and is 520 3727.

The Financial Supervisory Authority and the Central Bank of Iceland have decided to issue guidelines to financial institutions due to non-binding clauses linking loans to the exchange rate. The guidelines are as follows:

The FME Annual Report 2009 is now available in English. The report discusses the fall of the Icelandic commercial banks in October 2008, government measures taken as a result of the bank crisis and the significant changes that occurred in the Icelandic financial market in the wake of the economic collapse.

The Financial Supervisory Authority of Iceland (FME) has published tables containing the annual accounts of insurance companies with a licence in Iceland and the result of insurance classes in 2009.

The boards of directors of Byr Savings Bank and Keflavik Savings Bank have submitted a request for the Financial Supervisory Authority (FME) to take over the operations of the two savings banks after negotiations with creditors proved unsuccessful. The decisions posted by the FME on the disposal of the assets and liabilities of the savings banks reveal that Byr Savings Bank's deposits have been transferred to a new commercial bank, Byr hf., and the deposits held by Keflavik Savings Bank have been transferred to a new savings bank, Spkef Savings Bank. Both these financial undertakings have already been formally established and are wholly owned by the State.

The Financial Supervisory Authority (FME) has authorised Landskil ehf. to acquire a qualifying holding in NBI hf. on behalf of Landsbanki Islands hf. The authorisation is granted on the basis of a 15 December 2009 agreement between Landsbanki Islands hf. and the Icelandic Ministry of Finance stipulating, inter alia, that Landsbanki Íslands hf. could acquire an 18.7% holding in NBI hf., upon meeting specified conditions.

The Financial Supervisory Authority (FME) has granted ISB Holding ehf. permission to acquire a qualifying holding in Íslandsbanki on behalf of Glitnir Bank hf. The permission is granted on the basis of a 13 September 2009 agreement between Glitnir and the Icelandic Ministry of Finance, authorising Glitnir to acquire a 95% holding in Íslandsbanki upon meeting specified conditions.

The Financial Supervisory Authority (FME) has authorised Kaupskil ehf. to acquire a qualifying holding in Arion Bank hf. (Arion) on behalf of Kaupthing Bank hf. (Kaupthing). The permission is granted on the basis of a 3 September 2009 agreement between Kaupthing and the Icelandic Ministry of Finance, authorising Kaupthing to acquire an 87% holding in Arion upon meeting specified conditions.