Iceland’s Special Prosecutor Investigates Pension Funds Skip to content

Iceland’s Special Prosecutor Investigates Pension Funds

Yesterday, special prosecutor Ólafur Thór Hauksson launched an investigation into investments made by five Icelandic pension funds worth ISK 25 billion (USD 216 million, EUR 166 million) in total.

The headquarters of Landsbanki in Reykjavík. Copyright: Icelandic Photo Agency.

According to Fréttabladid, the pension funds were all managed by the same person at Landsbanki. That individual stopped working for Landsbanki last Friday, but the bank denies that has anything to do with the investigation.

The Financial Supervisory Authority (FME) referred this matter to the special prosecutor because of suspicion that the funds’ investments in certain companies, including Landsbanki where the money was under asset management, had exceeded the maximum legal amount, Morgunbladid reports.

“There is also a suspicion that the reports that they submitted to the FME were incorrect, so that is possibly a violation of the penal code,” said Hauksson. “Then there is a question of whether people were acting beyond their sphere authority.”

“The next step is to obtain documents and then people will be called in for questioning. It will take its usual legal course,” Hauksson explained.

The pension funds in question are Íslenski lífeyrissjódurinn, Lífeyrissjódur Eimskipafélags Íslands, Lífeyrissjódur Tannlaeknafélag Íslands, Eftirlaunasjódur íslenskra atvinnuflugmanna and Kjölur lífeyrissjódur.

Click here to read more about the special prosecutor.

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