The outer reach of state obligations under deposit guarantee schemes – What can we learn from the Icesave case? (2013:18epa)

On 28 January 2013, the EFTA Court passed a judgment in the so called Icesave case, regarding Iceland’s rules on the protection of savers’ deposits following the collapse of all its major banks in the autumn of 2008. In the opinion of the EFTA Surveillance Authority (ESA), this constituted a breach of the EU Directive on deposit-guarantee schemes. The EFTA Court, however, found that Iceland hade not failed to comply with the obligations of the Directive. Moreover, the judgment indicates serious shortcomings in the EU regulations regarding protection of depositors.

In this analysis, the authors shed light on the background of the case and on the basis for the EFTA Court´s reasoning.

The publication is part of SIEPS´ research project EU and Enlargement Issues.

Asta Sollilja Sigurbjörnsdottir (LL.M.) graduated as Master of European Business Law from Lund University. Gunnar Thor Petursson (LL.M) is a Faculty Member at the School of Law, Reykjavik University. He was a Deputy Director at the EFTA Surveillance Authority (ESA) 1999-2004.