ISFI is a state body with an independent Board of Directors which reports to the Minister of Finance. The body was established with Act no. 88/2009, which came into effect in August 2009. The Board of Directors of ISFI was appointed in September 2009, and the institution started to operate in January 2010.

ISFI manages the state’s holdings in financial undertakings, in accordance with the law, good governance and business practices and the state’s ownership policy at any given time. It also allots funds to financial companies on the state’s behalf, in accordance with Treasury budget allocations.

ISFI aims to restore and reconstruct a dynamic domestic financial market and promoting natural and effective competition in the market, to guarantee transparency in all decisions regarding the state’s participation in financial activities and ensure an effective dissemination of information to the public.

Icelandic State Financial Investments shall have completed its duties no later than 5 years after its foundation.