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 | |
| Investment firms | |
| UCITS Management Companies | |
| Insurance brokers and other distributors | |
| Insurance companies | |
| Stock exchanges and other regulated markets | |
| Pension funds | Act No. 129/1997 on the Mandatory Insurance of Pension Rights and the Activities of Pension Funds |
| Debt collection agencies | |
| Payment institutions | |
| Electronic money institutions | Act No. 17/2013 on the Issuance and Handling of Electronic Money |
| Managers of alternative investment funds | |
| Central securities depositories |
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 | |
| Managers of alternative investment funds below benchmark amounts |