From a speech given by Sigurdur Einarsson, Kaupthing boss at a conference held by the Financial Authority in January, 2005.

“…There is a reaction, in Iceland as in many other countries, to the corporate scandals that recently shocked the world, but adding more detailed regulations and penalties will not help against those who are willing to violate the law. Even in the United States of America, politicians have mistakenly introduced new laws that have resulted in less freedom, to the extent that USA is no longer on the top ten list over the most free business countries in the world.

…In my opinion, and that is an opinion I have formed after dealings with authorities in more than ten countries, the financial and regulatory authorities in Iceland and in Luxembourg are among the most effective.  That may come as a surprise to some of you, but I can support my opinion with some arguments. Here in Iceland as in Luxembourg you have up to now been able to reason with the FSA’s, get guidance and come to understandings where substance but not formalities have been in the
forefront. In that way you build up trust and confidence which is the core quality in all business dealings.

…Some people seem to think that the Icelandic FSA is not up to standards since it has not put any CEO’s or investors behind bars as has happened in the USA. In my view the right yardstick here is the financial strength and competitiveness of Icelandic banks and financial companies and the effective competition in the market. Considering these factors, the Icelandic FSA has done a great job.

…In general I think the tax authorities in Iceland would be more effective by reasoning with foreign investors as well as our big companies and – more in the style of FSA – guiding them to adapt acceptable procedures, rather than taking them to the courts. In Sweden Kaupthing bank encountered a negative attitude from The
Small Shareholders Association. A totally unfounded criticism, underpinned by slander and gossip exported from Iceland,

…In a small country as Iceland it’s also easy to get ones point of view across to the political decisions makers.

… My advice to all concerned with the ongoing success of the financial market in Iceland is this: Be business minded and think well and hard before introducing any new rules and restrictions into the country’s legal framework.”

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