Iceland

Regulatory authority
The financial market in Iceland is regulated by The Financial Services Authority, Iceland.

ISD – Icelandic Securities Depository
The ISD is a registry, a depository and a clearing house for the settlement of securities in dematerialised form. The ISD system holds equities and bonds in a book-entry form. The ISD employs a book-entry-only system and act as central registry and depository for securities.

ICEX – The Icelandic Securities Exchange
The Iceland Stock Exchange, ICEX was established in 1985 as a joint venture of several banks and brokerage firms at the initiative of the central bank. In 1989, ICEX launched its first trading system, which allowed continuous trading. Trading has always been electronic by remote access.

ICEX participates in the NOREX Alliance (Nordic Stock Exchanges) and trading is conducted on the electronic trading system SAXESS, which is used by all members of the NOREX Alliance.

In September 2006, OMX Nordic Exchange signed a letter of intent regarding an acquisition of the Iceland Stock Exchange.

Taxation
Tax on dividends is applied at source. The current percentage applied on dividends paid to companies is 15% and is the same in all current double taxation treaties. There is no tax on interest payments to foreign investors.

Investment restrictions
The Icelandic economy is open to foreign investments, although direct shareholding in fishing or fish processing companies is not permitted.