Regulatory Alerts2019-07-11
Small Insurance Undertaking Investment Regulation (kVU-KAV)
The Austrian Financial Market Authority issued this regulation to establish investment rules for small insurance undertakings under the 2016 Insurance Supervision Act. It mandates that these entities maintain a secure, liquid, and diversified asset portfolio while restricting eligible investments to specific euro-denominated securities, funds, and real estate within OECD member states. The regulation further imposes strict individual and total investment thresholds to limit concentration risk and permits derivative instruments solely for hedging or efficient portfolio management.
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