Compliance in Financial Institutions in Iceland Faces Scrutiny from Central Bank
The Central Bank of Iceland has taken it upon itself to promote sound and secure financial activities, ensuring that supervised entities comply with laws and regulatory acts as well as maintain normal business practices. In a move to tighten its grip on the country’s financial sector, the bank has been entrusted with taking decisions regarding financial supervision by law or government directives.
Financial Supervision Committee
The Financial Supervision Committee, established under Act no. 92/2019, plays a crucial role in making decisions regarding supervised entities. According to Chapter III of the Act on Official Supervision of Financial Activities, no. 87/1998, the bank’s supervisory powers are outlined, providing a framework for its oversight.
Key Responsibilities
- Makes decisions regarding supervised entities
- Ensures compliance with laws and regulatory acts
- Maintains normal business practices
Consumer Protection
In addition to its supervisory role, the Central Bank is also responsible for overseeing business practices between financial institutions and consumers, providing information services and guidelines to ensure fair treatment. The Insurance Complaints Committee and the Complaints Committee on Transactions with Financial Firms are hosted by the bank, allowing it to address consumer concerns.
Consumer Protection Measures
- Oversees business practices between financial institutions and consumers
- Provides information services and guidelines for fair treatment
- Hosts the Insurance Complaints Committee and the Complaints Committee on Transactions with Financial Firms
Foreign Insurance Companies in Iceland
The FSA has also taken steps to facilitate foreign insurance companies operating in Iceland, providing a list of registered entities authorized to offer services without establishing a physical presence or opening a branch. As the country’s financial regulatory body continues to monitor compliance within the sector, consumers can rest assured that their interests are being protected.
Benefits for Consumers
- Increased competition and innovation in the market
- Improved access to financial services
- Enhanced protection of consumer interests