Fjármálaeftirlitiðs

Fjármálaeftirlitið, often abbreviated as FME, is the Icelandic Financial Supervisory Authority. It is an independent public body responsible for supervising and regulating financial institutions operating in Iceland. Its primary objective is to ensure the stability and integrity of the Icelandic financial market, protect consumers and investors, and promote confidence in the financial system.

The FME oversees a wide range of financial entities, including banks, credit institutions, insurance companies, pension funds, investment firms, and payment service providers. Its supervisory activities encompass prudential supervision, which focuses on the financial health and risk management of these institutions, and conduct of business supervision, which ensures that firms act in accordance with laws and regulations concerning consumer protection and market conduct.

Key functions of the FME include granting licenses to financial institutions, monitoring their compliance with regulatory requirements, conducting on-site inspections and off-site analysis, and imposing sanctions when necessary. The authority also plays a role in crisis management and resolution within the financial sector. It collaborates with other domestic and international regulatory bodies to ensure effective oversight and address cross-border financial issues. The FME's work is crucial for maintaining a sound and well-functioning financial sector in Iceland.