Investor Protection

The Market for Financial Instruments Act No. 115/2021 (currently only in Icelandic) transposed into Icelandic law the Markets in Financial Instruments Directive, MiFID II. The objective of the act is to ensure transparency, enhance investor protection and increase investor confidence.

The new act changed various important rules on securities transactions. It introduced comprehensive changes to the requirements on regulated markets, multilateral trading facilities and investment firms. It makes stricter requirements relating to transparency, investor protection and business practices, the board of directors, governance and the structure of investment firms and regulated markets in general.

Securities transactions

Before Arion Bank can provide the client with investment services, the Bank must obtain information on the client’s knowledge and experience of transactions with financial instruments. On the basis of this information the Bank is obliged to assess whether the requested transactions are appropriate for the client. It is important that the client answers all questions to the best of their ability, so that they provide an accurate picture of which transactions are appropriate for the client. If the client’s circumstances have changed, the client is asked to update the answers so that they provide an accurate picture of their needs at any given time.

In addition to answering questions, the client has to sign a new agreement on investment services and agree to the updated terms of business for investment services following the introduction of the new law. This can be done by clicking on the button below.

Assessment of knowledge and experience

If you have not already participated in securities transactions or do not have a custody account at Arion Bank, it’s easy to get started by clicking on the button below.

Open a custody account

Better overview of costs and charges

When investing in financial instruments it is important to know what costs and charges are involved and what the effect on investment returns will be. The introduction of MiFID II places stricter requirements on investment firms to provide clients and potential clients with information on all costs and related charges at plenty of notice. The Overview of Costs & Charges provides details of the costs and charges when investing in shares and bonds and the aim is to provide investors with a better overview of the costs involved in investing in financial instruments and the effect on investment returns.

Investors are also advised to read the Fees and charges for Investment Services.


Legal Entity Identifier

Legal entities are required to have a Legal Entity Identifier (LEI) in order to trade with listed securities from 1 September 2021.

The aim is to enable international regulators to monitor transactions by individual legal entities and thereby to enhance monitoring of systemic risk and facilitate investigations into misconduct linked to securities transactions.

More on LEI

National Client Identifier

All foreign nationals are required to submit a National Client Identifier (NCI) to the Bank in order to trade with listed securities from 3 January 2018.

NCI is an international identifier used by companies in order to fulfil their reporting obligations to the regulatory authorities.

More on NCI


If the client has any comments on the handling of complaints at the Bank, please consult the following:

Réttarúrræði viðskiptavina (currently only in Icelandic)

Reglur Arion banka um meðferð kvartana (currently only in Icelandic)