This Regulation covers the imposition by the Financial Supervisory Authority of fines and periodic penalty payments on regulated parties.
Decisions on periodic penalty payments and fines
The Board of Directors of the Financial Supervisory Authority will impose fines and periodic penalty payments by special decision.
The party affected by the decision on fines and periodic penalty payments shall be granted a period of seven days to submit a written protest before the Board of Directors makes a decision pursuant to paragraph 1.
A decision of the Board of Directors on fines and periodic penalty payments shall be notified to the party concerned in a verifiable manner without unreasonable delay.
A regulated party may appeal a decision of the Board of Directors of the Financial Supervisory Authority on fines and periodic penalty payments to the Appeals Committee provided for in Act No. 87/1998 within seven days of notification.
Amounts of fines and periodic penalty payments
The periodic penalty payments can amount to ISK 10,000-1,000,000 and may be determined as a proportion of certain indicators in the operations of the regulated party. When determining the amount of periodic penalty payments , consideration may be taken of the nature of the negligence or violation, and the financial strength of the regulated party.
Fines may range from ISK 10,000-2,000,000. The determination of the amount of fines shall take account of the seriousness of the violation and the financial strength of the regulated party.
Collection of fines and periodic penalty payments
Fines and periodic penalty payments may be collected following the expiry of the time limit for appeal pursuant to Article 3. If a decision is appealed to the Appeals Committee, the fines and the periodic penalty payments may not be collected until a ruling has been issued. Periodic penalty payments and fines are enforceable by law.
Collected fines and periodic penalty payments shall accrue to the State Treasury, net of the collection cost.
Uncollected periodic penalty payments will not be cancelled even if a regulated party subsequently complies with the Financial Supervisory Authority's requests, unless specifically decided by the Board of Directors of the Financial Supervisory Authority.
Periodic penalty payments for delays in regular disclosures
Periodic penalty payments may be imposed when a regulated party fails to submit requested documents to the Financial Supervisory Authority.
Requested documents are documents that regulated parties are required to submit to the Financial Supervisory Authority before a set deadline pursuant to law, administrative instructions or in response to a request from the Financial Supervisory Authority for regular disclosures by regulated parties.
Submission of documents
Documents pursuant to Article 6 are regarded as submitted before the set deadline if satisfactory documentation has been received by the Financial Supervisory Authority on the day of the deadline.
If it appears on processing of the documents that their content is inadequate, the Financial Supervisory Authority will instruct the regulated party to make amends without unreasonable delay. Periodic penalty payments pursuant to Article 6 may be imposed at the discretion of the Financial Supervisory Authority.
Postponement of submission
When the submission of documents is required on predetermined days, cf. Article 6, the deadline for submission will normally not be extended.
Obligation to submit documents following a special decision of the Financial Supervisory Authority
Call by the Financial Supervisory Authority for documents in special circumstances
The Financial Supervisory Authority may order a regulated party to submit documents and present its views in the manner considered necessary by the Authority to monitor whether the regulated party's business activities are in compliance with the law, government regulations, rules or resolutions applicable to the business activities, and that the activities are in other respects in compliance with sound and normal business practices.
A party shall be granted a reasonable deadline to submit documents pursuant to paragraph 1.
Periodic penalty payments for delays in the submission of requested documents
Periodic penalty payments may be imposed when a regulated party fails to comply with the instructions of the Financial Supervisory Authority pursuant to Article 9.
Requirement by the Financial Supervisory Authority for corrective actions
Requirement made for corrective actions
If it is revealed that a regulated party does not comply with the law or other rules governing its activities, the Financial Supervisory Authority shall require corrective action within a reasonable time limit.
The Financial Supervisory Authority shall comment on any aspect of the financial position of a regulated party, or its operations in other respects, which it considers unsound and inconsistent with normal business practices, even when the provisions of paragraph 1 do not apply, and may also require corrective action within a reasonable time limit.
Periodic penalty payments and fines for non-compliance with decisions of the Financial Supervisory Authority
The Board of Directors of the Financial Supervisory Authority may impose fines or periodic penalty payments on a regulated party that does not heed or violates decisions made by the Authority. Decisions pursuant to this Article include requirements of corrective actions pursuant to Article 11.
Completion of corrective actions
Corrective actions are regarded as completed when a party submits to the Financial Supervisory Authority a written report on the actions taken to implement a decision of the Authority. The deadline for the submission of the report is subject to the rules in Article 7.
If corrective actions are inadequate, they shall not be regarded as having been concluded within the time limit set pursuant to Article 11.
Entry into force.
This Regulation is issued by the authority conveyed in paragraph 7 of Article 11 and Article 19 of Act No. 87/1998 on the official supervision of financial operations, and is effective immediately.
Ministry of Business Affairs,03 July 2001