Iceland's Ministry of Finance and Economic Affairs has published consultation plans to amend the legal provisions that constrain pension funds’ investments, with the aim of easing selected limits and addressing issues that have emerged in practice. The proposed approach would preserve the framework introduced in 2016 while streamlining the rules and giving greater weight to the “prudent person” rule in Article 36 of Act No. 129/1997 on mandatory pension rights insurance and the operation of pension funds. Under that rule, each pension fund’s investment policy must be set out responsibly and reflect its obligations and role. The plans also envisage amendments covering pension fund operations, internal control and internal audit.
Ministry of Finance and Economic Affairs (Iceland) 2026-02-11
Iceland's Ministry of Finance and Economic Affairs launches consultation on widening pension funds’ investment powers
Iceland's Ministry of Finance and Economic Affairs is consulting on amending legal provisions to ease investment limits for pension funds, while maintaining the 2016 framework and emphasizing the "prudent person" rule in Article 36 of Act No. 129/1997. Proposed amendments also address pension fund operations, internal control, and internal audit.