One of the tasks of the Central Bank of Iceland is to grant legal entities and, in some instances, individuals – licences to operate in the financial market. A financial undertaking may be granted a licence to operate as:
- A commercial bank
- Savings bank
- Credit undertaking/investment bank
These undertakings are hereinafter referred to as credit institutions. A financial undertaking may also be granted a licence to operate as an Investment firm.
The Central Bank also grants operating licences to the following parties:
- Insurance companies
- Central securities depositories
- Stock exchanges
- Electronic money institutions
- Payment institutions
- UCITS management companies
- Managers of alternative investment funds
- Debt collection agencies
- Insurance brokers (both individuals and legal entities)
Some parties are not obliged to hold an operating licence from the Central Bank but are required to register. These parties are:
- Managers of alternative investment funds below benchmark amounts
- Creditors and credit intermediaries
- Crypto-asset service providers
- Currency exchange services
Applications for operating licences and laws governing the activities
| Activities | Laws governing the activities |
|---|---|
Commercial banks, savings banks and credit undertakings | Act no. 161/2002 on Financial Undertakings. |
Investment firms | Act No. 115/2021 on the Market for Financial Instruments. |
UCITS Management Companies | Act No. 116/2021 on UCITS. |
Insurance brokers and other distributors | Act No. 62/2019 on Insurance Distributors |
Insurance companies | Act No. 100/2016 on Insurance Activities |
Stock exchanges and other regulated markets | Act No. 115/2021 on Markets for Financial Instruments |
Pension funds | Act No. 129/1997 on the Mandatory Insurance of Pension Rights and the Activities of Pension Funds |
Debt collection agencies | Debt Collection Act No. 95/2008. |
Payment institutions | Act No. 114/2021 on Payment Services. |
Electronic money institutions | Act No. 17/2013 on the Issuance and Handling of Electronic Money. |
Managers of alternative investment funds | Act No. 45/2020 on Alternative Investment Fund Management. |
Central securities depositories | Act No. 7/2020 on Central Securities Depositories and Settlement and Electronic Registrations of Financial Instruments. |
Registration applications and laws governing the activity
| Activities | Laws governing the activities |
|---|---|
Currency exchange services and crypto-asset services providers | Act no. 140/2018 on Measures against Money laundering and Terrorist Financing. |
Creditors and credit intermediaries | Act no. 118/2016 on Mortgage Lending to Consumers. |
Managers of alternative investment funds below benchmark amounts | Act no. 45/2020 on Alternative Investment Fund Management. |