The Icelandic Financial Institutions’

Guarantee Fund

Financial protection

with responsibility

The Icelandic Financial Institutions’

Guarantee Fund

A foundation for a stable

financial system

Um sjóðinn

Um sjóðinn

Legislation

The Icelandic Guarantee Fund for Financial Undertakings (previously the Icelandic Depositors’ and Investors’ Guarantee Fund) was established on December 28, 1999. The Fund is subject to the provisions of Act No. 98/1999, with subsequent amendments. Regulation no. 120/2000 on Deposit Guarantees and Investor Compensation Schemes has been enacted under Act No. 98/1999 and applies to the fund...

 

The provisions of Act no. 98/1999 are largely based on European legislation. Rules on the Fund’s Deposit Division are based on Directive 94/19/EC of the European Parliament and of the Council. The Directive ensures that the main elements of the deposit guarantee schemes are harmonized across the European Union (EU) and EEA (EEA includes Iceland, Norway and Liechtenstein). A new Directive 2014/49/EU on Deposit Guarantee Schemes was implemented in April 2014 at EU level and has been implemented in the European Union, but has not been incorporated into the EEA Agreement and has therefore not been transposed into Icelandic law. Rules on the Fund’s Securities Division are largely based on the provisions of Directive of the European Parliament and of the Council no. 97/9/EC on investor-compensation schemes.
The Resolution Fund is subject to the provisions of Act no. 70/2020 on Recovery and Resolution of Credit Institutions and Investment Firms. TVF handles the fund’s administration.
All Icelandic commercial banks and savings banks are obliged to be members of TVF. The same applies to branches of such parties within the EEA and EFTA.