This law implements European regulations on securitisation, which allows financial institutions to bundle loans and other claims together and sell them as securities to investors. The regulation sets strict requirements for transparency and disclosure obligations to increase market safety following the 2008 financial crisis. The law affects credit institutions, securities firms, insurance companies, asset management companies, and investors participating in securitisation transactions. Icelandic financial laws, such as those governing financial undertakings and investment funds, are connected to the European regulation.