Financial Services and Markets - Regulation No 308/1994 of a branch and a representative office of a credit institution established in another country within the European Economic Area - -
on a branch and a representative office of a credit
institution established in another country within
the European Economic Area
No. 308 of 25 May 1994
Article 1
For the purpose of this Regulation the term "credit institution" means a commercial bank and a savings bank according to Act No. 43 of 1993, on Commercial Banks and Savings Banks, and other credit institutions, according to Act No. 123 of 1993 on Credit Institutions other than Commercial Banks and Savings Banks.
This Regulation applies to the operation of branches of foreign commercial banks, savings banks and other credit institutions in Iceland established in other countries within the European Economic Area and which have been granted an operating licence by competent authorities in that country. It shall also apply to representative offices where appropriate.
The manager of a branch shall meet the requirements of Article 38 of Act No. 43 of 1993 on Commercial Banks and Savings Banks as well as being able to speak the Icelandic language.
The Bank Inspectorate of the Central Bank of Iceland supervises the branches which operate under this Regulation, pursuant to the provisions of the Act on the Central Bank of Iceland, Act on Commercial Banks and Savings Banks and, where appropriate, pursuant to other operating licences which it may have.
Branches operating in this country according to this Regulation shall comply with the same laws and regulations as credit institutions with headquarters in Iceland, e.g. rules on reserve requirements and liquid assets and the provision of information to Icelandic authorities according to laws and regulations in force at any given time.
Branches operating in this country according to this Regulation shall disclose the following information and material:
b. Consolidated accounts and consolidated annual report.
c. The opinion of the party responsible for auditing annual and consolidated accounts.
b. Average number of employees in a branch.
c. Total claims and liabilities related to a branch, broken down into those which concern credit institutions on the one hand and those which concern other customers on the other hand as well as the total amount of such claims and liabilities denominated in Icelandic kronur.
d. Total assets and amounts corresponding to items 2-6 on assets, 1-3 on liabilities and 1-2 on off-balance sheet items as defined in Article 4 and comparable articles in the above Directive 86/635/EEC and -- in the instances referred to in items 2, 5, and 6 on assets -- the breakdown of securities depending on whether they have been defined as financial fixed assets or not according to Article 35 in the above Directive 86/635/EEC.
The information under paragraph 1, subparagraph 2 of this Article shall be confirmed by a public accountant, certified according to Icelandic law, regarding their correctness and whether they comply with the annual accounts. All the information shall be sent to the Bank Inspectorate within ten days from endorsement but at the latest three months after the end of the financial year. The information and material pursuant to paragraph 1, subparagraph 1 shall be sent to the Bank Inspectorate within four months after the end of the financial year.
The Bank Inspectorate can require that the information and material pursuant to this Article be submitted in Icelandic translation which has been carried out by a state authorised translator.
A foreign credit institution which opens a representative office in this country shall give notice of this to the Minister of Commerce at the latest when the representative office is opened. The notice shall state information on the address of the representative office and the name of its manager.
The representative office may provide information and consultation in this country on behalf of a foreign credit institution. A representative office is not permitted to accept deposits, grant loans, trade in securities or other operations provided for in Article 44 of the Act on Commercial Banks and Savings Banks.
This Regulation, which is adopted in accordance with provisions in Article 85, paragraph 1 of Act No. 123 of 1993 on Commercial Banks and Savings Banks, cf. Article 13 of Act No. 123 of 1993 on Credit Institutions other than Commercial Banks and Savings Banks, enters into force immediately.
