 The FME was established in 1999, under the authority of two acts of legislation, act number 87/1998 on the Official Supervision of Financial Operations and act number 99/1999 on the Payment of Cost Due to the Official Supervision of Financial Activities.During the 2008–2012 Icelandic financial crisis Jónas Fr Jónsson was the CEO of the FME, both he and the FME were heavily criticized for missing the warning signs and inaction leading up to and during the crisis.The FME played an important role during the crises in late 2008 when the main three Icelandic banks failed