Transposition of MAR, MIFID II, PSD 2 and UCITS V

Transposition of MAR, MIFID II, PSD 2 and UCITS V

Recently, the Icelandic Parliament has approved a number of legislations in the field of financial regulation, inter alia for the purpose of implementing European legislation into domestic law. Delegated acts for the relevant regulatory framework will be implemented into Icelandic law by domestic regulations issued by Ministers and rules issued by the Central Bank, as applicable. At the time of writing, these acts have not been published in the Legal Gazette in Iceland and therefore have not been issued a number.

Act on Prevention of Market Abuse was approved on 25 May 2021; effective as of 1 September 2021. The Act transposes regulation No 596/2014 of the European Parliament and of the Council on market abuse (MAR).

Act on Markets in Financial Instruments was approved on 13 June 2021; effective as of 1 September 2021. The Act transposes Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments (MiFID II) and Regulation (EU) No 600/2014 of the European Parliament and of the Council on markets in financial instruments (MiFIR). The Act also implements into Icelandic law Directive (EU) 2021/338 of the European Parliament and of the Council amending MiFID II as regards information requirements, product governance and position limits (Quick FIX).

Act on Payment Services were approved on 13 June 2021; effective as of 1 November 2021. This is a new comprehensive act on payment services, transposing Directive (EU) 2015/2366 of the European Parliament and of the Council on payment services in the internal market (PSD2). For a further discussion please see here.

Act on Undertakings for Collective Investment in Transferable Securities (UCITS funds)was approved on 13 June 2021; effective as of 1 September 2021. It is a new comprehensive act on UCITS funds, inter alia transposing Directive 2014/91/EU of the European Parliament and of the Council on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS V) and Directive 2010/78/EU of the European Parliament and of the Council (Omnibus I).

Although the above Acts are extensive and entail significant challenges, they represent an important step in aligning Icelandic legislation with the European financial regulatory framework.