Fjármálaeftirlit

Fjármálaeftirlitið (Financial Supervisory Authority, FME) is Iceland's independent regulatory agency responsible for supervising the country's financial sector. Its mandate is to promote financial stability, protect consumers, and ensure integrity and transparency in financial markets. The Authority oversees banks and credit institutions, insurance companies, pension funds, investment firms, fund managers, and other regulated financial service providers operating in Iceland. It issues licenses, supervises compliance with financial laws and regulations, conducts on-site inspections, and monitors disclosure and governance practices.

In its supervisory role, Fjármálaeftirlitið conducts risk-based supervision, enforces regulatory standards, requires regular reporting, and publishes guidance and rules. It can impose sanctions, require remedial actions, or revoke licenses when violations occur.

The Authority cooperates with other national authorities, notably the Central Bank of Iceland, and participates in international supervisory networks to align Iceland’s framework with global standards and best practices. It also provides consumer information and publishes annual reports, risk outlooks, and supervisory decisions.

Governance and accountability: The agency operates as an independent body, headed by a director-general and overseen by a board, with reporting lines to the government through the Ministry of Finance and Economic Affairs. It maintains transparency through regular reporting to the public and to Parliament.

Together, Fjármálaeftirlitið's work supports financial stability in Iceland, protects consumers, and maintains trust in the Icelandic financial market.