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Internal Market: Iceland must adopt legislation on insurance undertakings

19.12.2012

PR(12)86

Iceland must adopt legislation to implement fully EEA legislation on re-organisation and winding-up of insurance undertakings. This is the conclusion of a reasoned opinion adopted by the EFTA Surveillance Authority today.

In particular, Iceland has failed to implement correctly the provisions that foresee that known creditors should be individually informed when winding-up procedures are opened. The EFTA Court has recently ruled that Icelandic legislation on known creditors to credit institutions, with very similar wording to the ones concerning insurance undertakings, was not in compliance with EEA law[1]. In addition, the Authority has also concluded that some other issues have not been correctly implemented in Iceland.

It is in the interest of the proper functioning of the internal market and of the protection of creditors that coordinated rules are established at Community level for winding-up proceedings in respect of insurance undertakings. The Directive on reorganisation and widing-up of insurance undertakigns aims exactly at establishing such rules[2].

The Icelandic authorities have admitted the shortcomings but have not yet found an effective and practical solution to the matter.

Delivery of a reasoned opinion is the second stage in infringement proceedings. The Authority may bring the matter before the EFTA Court if Iceland fails to take the measures necessary to comply within two months of receiving the reasoned opinion.

 

For further information, please contact:

Mr. Trygve Mellvang-Berg
Press & Information Officer
tel. (+32)(0)2 286 18 66
mob. (+32)(0)492 900 187



[1] Case E-18/11 Irish bank Resolution corporation Ltd v Kaupthing Bank hf. (not yet reported).

[2] Directive 2001/17/EC of the European Parliament and of the Council of 19 March 2001 on the reorganisation and widing-up of insurance undertakings.




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