Investigators in London and Reykjavik have deepened co-operation on their overlapping criminal probes into the collapse of the Icelandic banking system and the British companies and business people involved.

Prosecutors from both countries agreed to exchange information after a meeting in London on Friday, amid increasing scrutiny of the deep UK ties to Iceland’s failed banks. Prominent UK-based investors were among the biggest borrowers and shareholders in Icelandic banks and hundreds of thousands of British depositors lost money in Icelandic savings accounts.