Financial Supervisory

Act. No. 87/1998, on Official Supervision of Financial Activities.

Fjármálaeftirlitið (FME), the Icelandic Financial Supervisory Authority, is a governmental instution responsible for financial supervision in Iceland.

The FME is governed by a three-member Board of Directors, appointed by the Minister of Commerce. Its role is to define areas of operational emphasis and monitor the activities and operations of the FME. The Board appoints a Director General who is responsible for daily administration.

The activities of the FME is divided between four operational units and supporting services under the control of the Director General. The units are:

  •     Credit Market
  •     Insurance Market
  •     Securities Market
  •     Pension Market and UCITS

Act No. 99/1999 on the Payment of Cost Due to the Official Supervision of Financial Activities, relates to the payment of supervisory expenses. Parties subject to supervision pay for its operations in full to meet the FME's operational expenses (see Art. 5).