Operating licences for investment firms

In order to be allowed to engage in investment services and investment activities, the undertaking must have been granted an operating licence as an investment firm, cf. Chapter I of Section 2 of Act no. 115/2021 on Markets in Financial Instruments.

The Central Bank of Iceland grants undertakings a licence to operate as investment firm pursuant to Article 5 of the Act. Requirements for the establishment and operation of investment firms are laid down in Section 2 of Chapter I of the Act and Article 14(a) of the Act no. 161/2002 on Financial Undertakings. Points 16 and 67 of Paragraph 1 of Article 4 of the Act specify the authorised activities of investment firms and the additional services they are licensed to provide.

The Central Bank of Iceland shall publish on its website a list of the information that must be specified in an application for an operating licence as an investment firm or an investment firm application for an extended operating licence, pursuant to Paragraph 4 of Article 7 of the Act.

The applicant shall submit an application in accordance with the requirements set out in Delegated Regulation (EU) 2017/1943,  cf. Rules no. 982/2023.

The application shall be submitted by completing the template set out in Annex I to Implementing Regulation (EU) 2017/1945, cf. Rules no. 982/2023. The applicant must also provide information by answering a questionnaire in the  service portal about its board members, and changes in board membership, in accordance with Annex II and III of Regulation (EU) 2017/1945. Those who do not have access to the service portal can send an email to sedlabanki@sedlabanki.is.

The contact point, in accordance with Article 1 of Implementing Regulation (EU) 2017/1945, is the Conduct Supervision department of the Central Bank of Iceland, sedlabanki@sedlabanki.is, which oversees all information received from applicants for investment firm licences.

Eligibility assessment of members of the board of directors and managing director of investment firms

In parallel with the processing of an application for an operating licence as an investment firm, the Central Bank shall examine the assessment of the eligibility of the members of the board of directors and managing director of the firm, pursuant to Article 10 of the Act on Markets in Financial Instruments, cf. Articles 52, 52(a) and 52(e) of the Act on Financial Undertakings.

Qualifying holding

In parallel with the processing of an application for an operating licence for an investment firm, the Central Bank may have to assess whether the shareholders are qualified to hold a qualifying holding, pursuant to Articles 11-18 of the Act on Markets in Financial Instruments. Further information on the assessment.

Explanations

• The Central Bank of Iceland is the competent authority pursuant to Point 34 of Paragraph 1 of Article 4 of Act no. 115/2021.
• References to Title II of Directive 2014/65/EU shall be understood as references to Section 2 of Act no. 115/2021.
• References to prudential requirements pursuant to Article 15 of Directive 2014/65/EU shall be understood as references to Article 20 of Act no.115/2021.
  
• References to prudential requirements according to Directives 2002/87/EC and 2013/36/EU shall be construed as references to prudential requirements according to Act no. 61/2017 on Additional Supervision of Financial Conglomerates and Act no. 161/2002 on Financial Undertakings.
  
• References to money laundering or terrorist financing in the meaning of Article 1 of Directive 2005/60/EC shall be construed as referring to money laundering or terrorist financing pursuant to Act no. 140/2018 on Measures against Money Laundering and Terrorist Financing.
  
• Reference to the six month period under Paragraph 3 of Article 7 of Directive 2014/65/EU shall be understood as a reference to Paragraph 2 of Article 7 of Act no.115/2021.