This law amends rules on how pension funds operate and invest their assets. Key changes include requiring pension funds to employ a compliance advisor who counsels the board on legal and regulatory requirements, and establishing clearer rules for outsourcing operations to ensure it does not compromise oversight or member services. Additionally, pension funds are granted broader investment permissions, including in covered bonds and various securities, and internal audit department requirements are strengthened. The law affects all pension funds in Iceland and indirectly all employees who contribute to pension funds.