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Internal Market: Winding up directive incorrectly implemented in Iceland



EN | IS 

Iceland has failed to adequately implement a directive aimed at the reorganisation and winding-up proceedings of failed credit institutions. This is the conclusion of a reasoned opinion that the EFTA Surveillance Authority (ESA) sent to Iceland today.

Winding-up-directive“One of the main objectives of the EEA agreement is that companies and individuals have the same rights throughout the region. Therefore, all the states must ensure legal certainty by the full and satisfactory implementation of EEA legislation”, says ESA College member Högni Kristjánsson.

The directive (2001/24/EC) ensures that when credit institutions in EEA States enter into reorganisation or winding-up proceedings, a single procedure is applied to all creditors and investors. This means that, as a general rule, the law of the home state of the credit institution applies.

ESA finds that three exceptions in the directive have been incorrectly implemented in Iceland. These are exceptions to the general rule on the governing law in court proceedings. One provision ensures the possibility for a beneficiary in rescission proceedings to argue that the challenged legal act is governed by another EEA Member State's law. The other two provisions clarify creditors' rights to set-off and netting agreements.

Today's reasoned opinion is the second step in ESA's formal infringement procedure against Iceland. The Icelandic government is now given two months to express its views, after which ESA may decide to refer the case to the EFTA Court.

For further information, please contact:

Ms. Anne Vestbakke
Head of Communications
tel. +32 2 286 18 66
mob. +32 490 57 63 53

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