Arion Bank Settles With Iceland's FSA, Agrees to ISK 280 Million Fine

Arion Bank has agreed to pay a fine of ISK 280 million to settle with the Financial Supervisory Authority of the Central Bank of Iceland over compliance failures in market abuse and financial instruments rules, TradingView reported on October 27, 2026. The settlement follows a review the FSA began in April 2024.

What the FSA Review Found at Arion Bank

Under the settlement, Arion Bank acknowledges deficiencies in its procedures and agrees to carry out remedial measures, which the bank says are already well advanced. The case concerns the bank's failure to meet reporting obligations to the FSA on share transactions by two customers in 2022 and 2023, where there were clear indications of possible market manipulation. One case involved transactions identified during the FSA's review; the other involved transactions the bank reported after identifying them in a review it started in light of the FSA's review.

The FSA also found that the bank's procedures and systems for detecting and reporting suspicious orders and transactions were not adequate when the transactions took place, including employee training and the configuration of its automated monitoring system. The authority further considers that the bank did not meet certain requirements under the Act on markets in financial instruments on product governance, appropriateness assessments, and employee knowledge and competence. The bank said it regrets that these matters were not handled appropriately at the time.

Remedial Steps Arion Bank Has Taken

Arion Bank said it has implemented a new international monitoring system, developed automated solutions for detecting potential market manipulation, and reviewed its rules and procedures. On investor protection, it has updated the questionnaires used for appropriateness assessments, strengthened training for employees providing investment services, introduced new monitoring tools, and carried out reviews of compliance with applicable requirements.

How Other Financial Firms' Cases Compare

Other legal and disputes cases at financial firms include Globe Life, which Levi & Korsinsky began investigating for potential securities fraud, The future of trading reported on October 26, 2026. Kauppalehti reported the same day that Pohjanmaan käräjäoikeus sentenced four Privanet executives to prison for fraud and market manipulation in a scheme spanning 2018-2020. TradingView reported on October 24, 2026 that Robot Consulting appealed a Nasdaq delisting determination, with the trading halt remaining in effect.

What Comes Next for Arion Bank

Arion Bank has undertaken to implement the remedial measures, which it describes as already well advanced. The bank is one of three systemically important universal banks in Iceland, listed on NasdaqOMX Iceland under the ticker ARION, according to akta.pro company records.