Securities market and funds

The scope of MiFID II is broader than the MiFID I Regulation and includes, for example, structured deposits. A new kind of trading platform, an Organised Trading Facility, is introduced. More requirements are also placed on the granting of authorisation, organisational requirements, investor protection and the business practices of investment firms.

A prospectus is a synonym for a document or documents that must be issued due to a public offering of securities or the admission of securities to trading on a regulated securities market.

Act (no. 15/2018 ) on Derivatives, Central Counterparties, and Trade Repositories entered into force in autumn 2018. This brought Regulation (EU) No. 648/2012 of the European Union of 4 July 2012 (Markets Infrastructure Regulation, or EMIR) into legal force in Iceland.

The regulation requires holders of net short positions to make notifications once certain criteria have been met. Short selling options are restricted and competent authorities (The Central Bank of Iceland) are given powers to suspend or restrict short selling of such transactions under certain circumstances.

On 1 September 2021, Act No. 60/2021 entered into force, whereby Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2024 on market abuse (MAR) was incorporated into national law in Iceland. The term market abuse refers to unlawful behaviour in financial markets and, within the meaning of MAR, includes insider dealing, unlawful disclosure of inside information, and market manipulation.

An issuer, according to Article 2(2) of Act No. 87/1998 on Official Supervision of Financial Activities, shall, as soon as possible and on equal ground, make public within the European Economic Area the information referred to in Act No. 20/2021 on the Disclosure Obligations of Issuers and Notification Requirements.