The Financial Supervisory Authority ( is, Fjármálaeftirlitið (FME)) is the single supervisory authority for the financial sector in

Iceland Iceland ( is, Ísland; ) is a Nordic island country in the North Atlantic Ocean and in the Arctic Ocean. Iceland is the most sparsely populated country in Europe. Iceland's capital and largest city is Reykjavík, which (along with its s ...

. Companies regulated by the authority are commercial banks, savings banks, insurance companies, insurance brokers, credit institutions (investment banks and credit card companies), securities firms, securities brokers, mutual funds and pension funds management companies and other entities authorized to receive deposits. The current CEO is Ms. Unnur Gunnarsdóttir, who succeeded the controversial Gunnar T. Andersen in March 2012. Deputy CEO Ragnar Haflidason succeeded Jónas Fr Jónsson in October 2008 and Gunnar T Andersen took over as CEO in April 2009. The first CEO was Pall Gunnar Palsson, who directed from 1999 to 2005.

History

The FME was established in 1999, under the authority of two acts of legislation, act number 87/1998 on the Official Supervision of Financial Operations and act number 99/1999 on the Payment of Cost Due to the Official Supervision of Financial Activities.

FME and the Icelandic financial crisis 2008

During the 2008–2012 Icelandic financial crisis Jónas Fr Jónsson was the CEO of the FME, both he and the FME were heavily criticized for missing the warning signs and inaction leading up to and during the crisis. The FME played an important role during the crises in late 2008 when the main three Icelandic banks failed: On October 6, 2008 it was announced that the FME would be given significant additional powers over Icelandic financial institutions by the Icelandic government. Included the power to take over the running of Icelandic banks without actually nationalising them. Immediately the following morning it intervened in the operations of

Landsbanki Landsbanki (literally "national bank"), also commonly known as Landsbankinn (literally "the national bank") which is now the name of the current rebuilt bank (here called "New Landsbanki"), was one of the largest Icelandic commercial banks that f ...

and

Glitnir Forseti (Old Norse "the presiding one", "president" in modern Icelandic and Faroese) is the god of justice and reconciliation in Norse mythology. He is generally identified with Fosite, a god of the Frisians. Name Grimm took ''Forseti'', "''pr ...

, taking over their operations within Iceland. On 9 October,

Kaupthing Kaupthing Bank ( is, Kaupþing banki; ) was a major international Icelandic bank, headquartered in Reykjavík, Iceland. It was taken over by the Icelandic government during the 2008–2011 Icelandic financial crisis and the domestic Icelandic b ...

was placed into receivership by the FME, following the resignation of the entire board of directors. The bank said that it was in technical default on its loan agreements after its UK subsidiary had been placed into administration. On 25 January 2009,

Björgvin G. Sigurðsson Björgvin G. Sigurðsson (born 30 October 1970) is an Icelandic politician, representing the Social Democratic Alliance. He became Iceland's first Minister of Business Affairs when the new ministry was split off from the Ministry of Industry a ...

, Iceland's Commerce Minister, resigned citing the pressures of the nation's economic collapse, as the country's political leaders failed to agree on how to lead country out of its financial crisis. One of his last acts as minister was to dismiss Jónas Fr Jónsson the director of the Financial Supervisory Authority (FSA). He was subsequently replaced by Deputy CEO Ragnar Haflidason.

References

External links

Icelandic Financial Supervisory Authority
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Regulation in Iceland Organizations established in 1999 1999 establishments in Iceland Government agencies of Iceland