The Education and Training Service Centre (ETSC) is owned by the Icelandic Confederation of Labour (ASÍ), the Confederation of Icelandic Employers (SA), the Federation of State and Municipal Employees (BSRB), the Ministry of Finance and the Association of Local Authorities in Iceland. In connection with the collective agreement between ASI and SA in December 2001, the Icelandic government issued a statement of intent which led to the establishment of FA. Operationsbegan in 2003.
In 2010 Parliament passed the Adult Education Act. The aim of the Act is to meet the needs of adults with short formal education and also to meet the needs of the labour market for staff with increased knowledge and skills. On the basis of the new Adult Education Act, studies outside upper secondary schools and universities will have increased weight.
The state budget provides funding for the operation of ETSC to undertake the projects specified in the service agreement with The Ministry of Education, Science and Culture. The Education Fund also receives funding to finance education and training courses, counselling, and validation by accredited educational providers.
The board of the Education Fund is responsible for the allocation of funds and for establishing rules and policies for the Fund's operations that are approved by the Minister. The Education Fund also operates the Development Fund, whose role is to provide grants to specified innovation and development projects concerning adult education.