Minister of Economic Affairs Gylfi Magnússon presented 14 new bills yesterday on extensive changes to the regulatory environment for limited companies and the financial market in Iceland.
These include regulations on trade between financial companies and their employees and on a system of encouragement, bonuses and termination agreements, where flexibility for excess will be limited and banks will be forced to follow conventional procedures in these matters, Morgunbladid reports.
The 14 bills are intended to increase transparency of ownership and flow of information to companies and shareholders, along with equality between men and women in management positions. Shareholders’ franchise is also to increase.
One bill includes measures against money laundering in compliance with comments received by the Financial Action Task Force on Money Laundering on the Icelandic regulatory framework in this field in 2006.
Another bill involves tighter regulations for insurance companies, whose side operations and investments will be limited if the bill is passed. It also suggests that a higher level of qualification is demanded for board members.
Finally, the overall financial insurance system is to be reviewed in accordance with changes to the regulatory environment of the European Union in light of the extent of the obligations the Depositors’ and Investors’ Guarantee Fund is currently facing.