ANNOUNCEMENT 21 Oct 2016
On 21 October 2016, the Icelandic parliament passed amendments to its Foreign Exchange Act.
NUMBER OF INTERVENTIONS
Press release summarising the changes by the Icelandic central bank
The amendment removes all foreign ownership caps on foreign direct investments.
At the same time, the amendment introduces the requirement that any foreign direct investment will previously require a confirmation by the Central Bank of Iceland.
Furthermore, the amendment scraps the repatriation requirement for foreign currency related to "loans taken abroad by individuals for the purchase of real estate or motor vehicles/transport equipment abroad, or for investment abroad".
Starting in 2017, the trade in securities will be largely liberalised. Foreign securities investments will no longer require domestic custody and the transfer of custody of securities will be eased.
According to a press release by the Central Bank of Iceland, "This will enable residents and non-residents to transfer deposits and securities to and from Iceland and to trade in securities abroad within the limits specified in the Act."