Icelandic Financial Supervisory Authority
Encyclopedia
The Financial Supervisory Authority is the single supervisory authority for the financial sector in Iceland
. 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 Gunnar Þ. Andersen, who succeeded the controversial Jónas Fr Jónsson. The first CEO was Pall Gunnar Palsson, who directed from 1999 to 2005.
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
and Glitnir
, taking over their operations within Iceland.
On 9 October, Kaupthing 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
, 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 Gunnar T. Andersen.
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...
. 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 Gunnar Þ. Andersen, who succeeded the controversial Jónas Fr Jónsson. 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 2008–2011 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 a 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
Landsbanki, also commonly known as Landsbankinn in Iceland, is a private Icelandic bank with international operations...
and Glitnir
Glitnir (bank)
Glitnir was an international Icelandic bank. It was created by the state-directed merger of the country's three privately held banks - Alþýðubanki , Verzlunarbanki and Iðnaðarbanki - and one failing publicly held bank - Útvegsbanki - to form Íslandsbanki in 1990...
, taking over their operations within Iceland.
On 9 October, Kaupthing 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
Björgvin G. Sigurðsson 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 and Commerce on 24 May 2007...
, 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 Gunnar T. Andersen.