Regulatory Alerts2024-12-04
FMA Minimum Standards on the Internal Capital Adequacy Assessment Process (ICAAP)
The Austrian Financial Market Authority (FMA) issued document 02/2024 to establish minimum standards for the Internal Capital Adequacy Assessment Process (ICAAP) applicable to less significant institutions under its indirect supervision. The standards mandate that institutions implement a solid ICAAP integrating both normative and economic perspectives to ensure adequate capitalization and effective risk coverage in line with Article 39a of the Austrian Banking Act. Institutions are required to fully consider these standards by 31 December 2026, ensuring their management bodies maintain responsibility for governance and that capital planning covers at least a three-year forward-looking horizon.
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