ANNUAL REPORT OF THE FINANCIAL SUPERVISORY AUTHORITY 2016 FJÁRMÁLAEFTIRLITIÐ THE FINANCIAL SUPERVISORY AUTHORITY, ICELAND 1 Annual Report – Financial Supervisory Authority 2016 Published by: Financial Supervisory Authority Katrínartún 2 IS-105 Reykjavik Tel. +354 520 3700 / Fax: 520 3727 E-mail:
[email protected] Editorial Board: Jón Þór Sturluson Ragnar Hafliðason Sigurður G. Valgeirsson Design and layout: ENNEMM Photographs: Birgir Ísleifur Gunnarsson 2 Contents From the Director General 7 1 FME’s Activities 11 1.1 Supervisory activities 12 1.2 Sanctions and regulation 20 1.3 Business practices and consumer affairs 23 1.4 Internal functioning 24 1.5 Operations and Finance 25 2 Financial market 29 2.1 Financial market outlook 30 2.2 Securities market 31 2.3 Credit market 34 2.4 Insurance market 38 2.5 Pension funds 42 2.6 Management companies and funds 48 3 Events of the past year 51 3.1 Highlights from May 2015 to end of April 2016 52 3.2 Summary of decisions and transparency notifications 60 from 1 May 2015 to end of April 2016 3.3 Summary of issues of Fjármál and articles from 1 May 2015 to end of April 2016 62 4 Entities regulated by FME 65 65 4.1 Number of entities regulated by FME 66 4.2 Activities by foreign parties in Iceland 67 3 4 Contents of the Annual Report The 2016 Annual Report of the Financial Supervisory Authority (FME) primarily addresses the period between 1 May 2015 and 30 April 2016. The report describes the main tasks of FME. Furthermore, it discusses the 2015 situation and developments on the credit market, securities market, pensions and funds market, and insurance market.