The RAF did not like formation badges so if it was worn in Iceland by RAF officers serving alongside Iceland Force - which although largely made up from elements of 49th Division was not called 49th Division- it would have been done unofficially.
My research had only thrown up one example of an RAF officer wearing a formation sign which was that of 9th Armoured Division which his squadron, as part of the RAF's Army Co-Operation Command was serving alongside.
I would be interested in hearing of any other examples of Army formation signs being worn on RAF uniform.
Jon
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