Ministry of Economic Affairs' initial reaction to the SICs report
The report issued earlier today by Parliament‘s Special Investigatory Committee (SIC) addresses a number of matters related to the Ministry's portfolio. The report presents a critical analysis of the execution of legislation and regulation of financial markets. This includes detailed analysis of the conduct of this Ministry and institutions which are in its domain, such as the Financial Services Authority and the Central Bank of Iceland (CBI).
The Parliament will now discuss the SIC's report. Due to the important information and analysis presented in the report the Ministry also plans to study its findings thoroughly and evaluate potential actions accordingly. Clearly the report, which stands at well over 2000 pages, is extensive and concrete actions will require extensive preparation and analysis. The Ministry aims to expedite this analysis and announce its reactions in a timely manner over the coming days and weeks.
It is important to note that the Ministry has already taken significant and concrete action as a direct consequence of the financial collapse in the fall of 2008. A report describing some of these steps (in Icelandic) is now available on the Ministry‘s website. The report provides a brief overview of changes already made to laws and regulations, as well as bills of law which are still under debate by Parliament. These include sweeping changes to the law on financial institutions, money market funds, deposit insurance as well as laws governing limited liability companies etc. A number of further initiatives are already underway, including a revision of the legislation on the CBI as announced by the minister at the bank's recent annual meeting.
The report (in Icelandic) can be accessed here: