Verðbréfarlög

Verðbréfarlög, also known as securities laws, are a body of laws and regulations that govern the issuance, trading, and sale of securities. These laws aim to protect investors, ensure fair and efficient markets, and prevent fraud and manipulation. In Iceland, the primary legislation governing securities is the Verðbréfaviðskipti Act.

The scope of verðbréfarlög is broad, encompassing various aspects of the financial markets. It typically includes provisions related to public offerings of securities, such as initial public offerings (IPOs), where companies sell shares to the public for the first time. These regulations often require companies to disclose significant information about their financial health, business operations, and risks to potential investors.

Furthermore, verðbréfarlög govern the secondary market, where securities are traded between investors after their initial issuance. This includes rules for stock exchanges, broker-dealers, and other market participants to ensure orderly trading and prevent insider trading and market manipulation. Regulations often mandate registration and licensing for entities involved in the securities industry.

Key objectives of verðbréfarlög include promoting transparency, ensuring that all investors have access to material information, and fostering confidence in the integrity of the financial system. Enforcement of these laws is typically carried out by financial regulatory authorities, such as the Financial Supervisory Authority (FME) in Iceland, which have the power to investigate violations and impose penalties.