Regulatory Alerts2012-11-06
Added · Updated
FMA Circular 05/2012 on Backdating of Insurance Contracts
The German Federal Financial Supervisory Authority (FMA) issued this circular to clarify its legal interpretation regarding the backdating of insurance contracts by supervised undertakings. The regulator deems backdating generally inadmissible as it often circumvents interest rate regulations, age-based premium requirements, and unisex scales, allowing it only in exceptional cases where legitimate legal or tax interests are documented. Consequently, the FMA mandates that the earliest possible commencement of insurance cover in actuarial bases must be set after the start of the sales process to prevent supervisory violations.
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