Regulatory Alerts2026-03-31
Federal Act on Pfandbriefe (PfandBG)
The Austrian Federal Act on Pfandbriefe establishes comprehensive regulatory requirements for covered bonds issued by EU credit institutions, defining structural features such as dual recourse and bankruptcy remoteness. It mandates strict eligibility criteria for cover assets, continuous coverage obligations with overcollateralization, and robust risk management including liquidity buffers and segregation of assets. The legislation further outlines supervisory powers, reporting duties, and administrative sanctions to ensure investor protection and market transparency.
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