Court dismisses Novis case against Central Bank of Iceland

A court has dismissed a case brought by the Slovak insurance company Novis against the Central Bank of Iceland (Seðlabankinn). The company, which had been warned about its operations for several years, sought legal action after it was unable to secure the necessary approvals to expand its services in Iceland, including the sale of supplementary insurance and personal pension savings.

The Central Bank consistently flagged concerns regarding Novis, while consumer protection organizations reported multiple issues related to the company and its Icelandic representative, Trygginga og ráðgjöf. Novis began selling life insurance in Iceland in July 2018, but the central bank refused to validate its operating rules, citing concerns over the company’s solvency and ability to meet its obligations. Ultimately, the Slovakian Central Bank revoked Novis’s license to operate last year.

In its lawsuit, Novis argued that the Central Bank’s refusal to confirm its regulatory framework constituted a violation of its rights, demanding recognition of damages owed by the bank. However, the court ruled against Novis, stating the plaintiffs failed to demonstrate any harm caused by the Central Bank’s actions. The judge noted that Novis did not adequately present its proposed regulations or how they met the legal requirements for approval.

As a result of the court’s decision, the case was dismissed, leaving Novis’s future operations uncertain as it had not requested the annulment of the Central Bank’s original decision. The company has since advised its clients to remain calm amidst the ongoing inquiry into its regulatory status.