FME grants Kaupthing Bank subsidiary permission to own a qualifying holding in Arion Bank

The Icelandic Financial Supervisory Authority (FME) has granted Kaupthing Bank’s subsidiary Kaupskil ehf. permission to own a qualifying holding in Arion Bank on behalf of Kaupthing. This permission was given following the conclusion of an agreement on the ownership of Arion Bank between Kaupthing and the Icelandic government. The agreement was subject to the approval of the FME and the Competition Authority. The Competition Authority gave its approval in a decision dated 23 December 2009, provided that certain conditions were fulfilled.

The FME has granted its permission on condition that certain measures are taken in relation to Kaupthing Bank’s financial strength, its ownership structure, regulatory supervision and the owners’ strategic aims.