Regulatory Alerts2023-02-16
Federal Act on the Supervision and Operation of Building Societies (Bausparkassengesetz - BSpG)
The Austrian Federal Act on the Supervision and Operation of Building Societies establishes the legal framework for credit institutions authorized to conduct building savings and loan business. It mandates strict licensing requirements, defines permissible business scopes, and enforces rigorous rules regarding business plans, fund earmarking, and loan security to protect customer interests. The legislation further regulates risk management, including currency and interest rate hedging, while granting the Financial Market Authority (FMA) powers to supervise operations and revoke licenses.
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