Regulatory Alerts2004-06-30
Added · Updated
FMA Circular on Liability Insurance for Statutory Auditors under Article 82 VAG
The Austrian Financial Market Authority (FMA) issued this circular to clarify the requirements for statutory auditors appointed by insurance undertakings to maintain appropriate liability insurance under Article 82 of the Insurance Supervision Act. The document mandates that such insurance must be structured as a policy for the account of a third party, ensuring the auditor holds sole disposal rights, access to the minimum insured sum, and irrevocable possession of the policy without exclusions based on the policyholder's breaches. To demonstrate compliance, auditors must submit specific evidence to the FMA, including a certificate of insurance, a copy of the policy, confirmation of possession, and a insurer statement guaranteeing coverage despite policyholder violations.