A regulated entity is a company or institution, and sometimes even an[GK1] individual, that has been issued with an operating licence by the Central Bank of Iceland and, where applicable, other public authorities to conduct activities in the financial market or which the Financial Supervisory Authority has been instructed to supervise by law. Examples of regulated entities include:
- Credit institutions (commercial banks, savings banks and credit undertakings.
- Investment firms
- Asset management companies of UCITS
- Alternative investment fund managers
- Stock exchanges and other regulated securities markets
- Central securities depositories
- Insurance companies
- Insurance brokers
- Payment institutions
- Electronic money institutions
- Debt collection agencies
- Currency exchange providers
- Virtual asset service providers
Can anyone own or control a regulated entity?
Laws and regulations require individuals who sit on the board of directors or work as managing directors of regulated entities to have adequate knowledge and experience to perform the job. The Financial Supervisory Authority assesses whether individuals fulfil the conditions and proper criteria.
The Financial Supervisory Authority also assesses whether individuals or companies that intend to acquire a qualifying holding in specified regulated entities, such as financial undertakings and insurance companies, are qualified to have such a holding. A qualifying holding is considered to be 10% or more of the share capital, or a holding that guarantees the owner over 20%, 30% or 50% of the voting rights. When assessing a qualifying holding, the following factors are considered: whether the owner of the qualifying holding intends to change the financial undertaking's operations, how the holding is financed, what business relationships the party has with other companies or individuals, and whether the party has a good reputation, e.g. whether the party has been punished for violating the law or is under investigation for possible violations of the law.