Regulatory Alerts2003-07-31
FMA Circular on Requirements for Internal Models and Independent Experts under Article 18 para. 1a VAG
The Austrian Financial Market Authority issued this circular to define detailed supervisory requirements for internal models and independent experts regarding state-sponsored retirement provision products under the 2003 VAG amendment. The document mandates that internal models must comprehensively explain investment strategies, risk parameters, and hedging levels, while independent experts must provide rigorous opinions on model validity, worst-case scenarios, and capital guarantee probabilities. Furthermore, the FMA specifies strict independence and qualification criteria for experts and requires the submission of existing product documentation by September 30, 2003.
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