Act No. 108/2007, on Securities Transactions, transposed into Icelandic law the European Union's Markets in Financial Instruments Directive, generally known as MiFID, and the Directive on the harmonization of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market, known as the Transparency Directive.

The MiFID Directive applies to the entire EEA, i.e. EU Member States plus Iceland, Norway and Liechtenstein. The Act on Securities Transactions makes changes to a number of important rules concerning the conduct of securities transactions. The purpose of the Act is to harmonize rules on consumer protection and create a common internal market in financial services. Emphasis is placed on increased surveillance, professional execution and information disclosure. 

The legislation is intended to ensure that clients of financial undertakings concluding securities transactions always receive appropriate information and advice. To accomplish this, additional obligations are placed on the client to provide information to financial undertakings.