PRIIPs

Act No. 55/2021 on Key Information Documents for Certain Investment Products for Retail Investors entered into force on 1 July 2021.

The Act implements provisions of the PRIIPs Regulation in to Icelandic law. Furthermore, the Central Bank Rules No. 510/2023 on the preparation and distribution of Key Information Documents incorporates PRIIPs level 2 measures into Icelandic law.

According to Art. 1(2) of Act No. 55/2021, the Act applies to manufacturers of packaged and insurance-based investment products for retail investors, and entities providing advice on or selling such products.

Key information documents shall be in Icelandic or another accepted language according to Art. 7 of PRIIPs.

If a PRIIP is promoted in Iceland with marketing documents in Icelandic, the Key Information Document (KID) must at least be written in Icelandic in accordance with Art. 7(2) of the PRIIPs Regulation.

The Financial Supervisory Authority acknowledged, through Circular No. 19/2025, that Key Information Documents for packaged investment products (PRIPs) may be in English under certain conditions. These conditions are:

• The distributor of the investment product ensures that the buyer understands the key aspects of the investment and the associated risks.
• The distributor ensures that other laws and regulations are complied with, e.g. regarding the definition of the target group.
• If an investment product is marketed in Iceland or in Icelandic and the investor is provided with a Key Information Document in English, a Key Information Document in Icelandic must also be provided.

It should be emphasised that the circular does not apply to insurance-based investment products as defined in point (b) of Article 4(3) of the PRIIPs Regulation.

Circular no. 33/2023 regarding rules no. 510/2023.