Iceland: Office of the Prime Minister

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Yale University EliScholar – A Digital Platform for Scholarly Publishing at Yale YPFS Documents (Series 1) Browse by Media Type 10-7-2008 Act on Depositors' and Investors' Guarantee Fund: The New Legislation in Short Iceland: Office of the Prime Minister Follow this and additional works at: https://elischolar.library.yale.edu/ypfs-documents Recommended Citation Iceland: Office of the Prime Minister, "Act on Depositors' and Investors' Guarantee Fund: The New Legislation in Short" (2008). YPFS Documents (Series 1). 13171. https://elischolar.library.yale.edu/ypfs-documents/13171 This Document is brought to you for free and open access by the Browse by Media Type at EliScholar – A Digital Platform for Scholarly Publishing at Yale. It has been accepted for inclusion in YPFS Documents (Series 1) by an authorized administrator of EliScholar – A Digital Platform for Scholarly Publishing at Yale. For more information, please contact elischolar@yale.edu. October 07, 2008 In recent months, the world �nancial markets have been in a state of crisis mainly due toshortage of liquidity and limited supply of credit. Icelandic banks have been affecteddramatically like �nancial institutions in other countries. Under these dif�cult conditions,authorities all over the world have been forced to adopt measures aimed at securing thefunctioning of �nancial markets. The Icelandic Authorities have taken similar measures.With the new act, adopted yesterday evening, the Minister of Finance, on behalf of theTreasury, is authorised to disburse funds in order to establish a new �nancial �rm or take overan existing �nancial �rm, either wholly or in part. Also amendments are made to the Act onFinancial Undertakings, the Act on Of�cial Supervision of Financial Activities, the Act onDeposit Guarantees and Investor Compensation Scheme, and the Act on Housing Affairs. Theseamendments are made to allow the authorities to respond to current �nancial marketconditions without delay, with the purpose of securing the functioning of the banking system.The principal amendments to the Act on Financial Undertakings is an authorisation to theFinancial Supervisory Authority to intervene extensively in the operations of �nancial �rms incase of special circumstances or events, for the purpose of limiting damage or the risk ofdamage in the �nancial markets. It is stipulated that the Financial Supervisory Authority isauthorised to do the following, among other things:Prime Minister's Of�ce/Act on depositors' and investors'guarantee fund: The new legislation inshortCall shareholders' meetings or meetings of guarantee capital owners withoutconsideration of the company's Articles of Association or the provisions of the Actrespecting Public Limited Companies.Assume control of a shareholders' meeting or meeting of guarantee capital holders forthe purpose of taking decisions on necessary measures, including limiting the decision-making power of the Board, dismissing the Board in whole or in part, taking over theLogo forTheGovernmentofIcelandGovernment of IcelandGovernment of Iceland | Act on depositors' and investors' guarantee fund... https://www.government.is/news/article/2008/10/07/Act-on-depositors-a...1 of 2 12/3/2021, 2:46 PMThe primary amendments to the the Act on Depositors' and Investors' Guarantee Fund are:Reykjavik, 7 October 2008operations of the �nancial �rm in whole or in part, or disposing of such an undertakingin whole or in part, including merging it with another undertaking.Restrict or prohibit a �nancial undertaking's disposal of its capital and assets.Furthermore, the act authorises the Financial Supervisory Authority to take custody ofthose assets that are to satisfy the �nancial undertaking's obligations and have theirvalue assessed, and dispose of them for payment of accrued claims, insofar as isjusti�able.Demand that an undertaking apply for moratorium on payment or seek composition ofcreditors. Furthermore, it is stipulated that, in the Act on Of�cial Supervision of FinancialActivities, the above-speci�ed authorisations of the Financial Supervisory Authority tointervene in the operations of �nancial undertakings be extended to include parties,other than �nancial undertakings, whose operations are subject to of�cial supervision.That deposits be given priority in the event of insolvency proceedings.To allow for reimbursement of deposit balances in Icelandic krónur.That �xed rate deposit balances be reimbursed in accordance with the terms of theaccounts, so that the Fund will not be required to pay before the account owner wouldhave been able to withdraw the balance in accordance with the terms of the account.That the rules concerning netting of debt apply to settlement between deposit balancesand debt within the same �nancial undertaking.Government of Iceland | Act on depositors' and investors' guarantee fund... https://www.government.is/news/article/2008/10/07/Act-on-depositors-a...2 of 2 12/3/2021, 2:46 PM

Act on Depositors\u27 and Investors\u27 Guarantee Fund: The New Legislation in Short

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Act on Depositors\u27 and Investors\u27 Guarantee Fund: The New Legislation in Short

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