Regulatory Alerts2008-06-27
FMA Circular on Insurance Undertakings Acting as Tied Agents Under Article 28 WAG 2007
The Austrian Financial Market Authority clarifies that insurance undertakings are generally prohibited from acting as tied agents for other legal entities under Article 28 of the 2007 Securities Supervision Act. This restriction stems from statutory limits on non-insurance business, which protect insurer solvency by excluding unlimited liability risks and recourse claims associated with broader tied agency activities. Consequently, insurers may only serve as tied agents when mediating investment fund shares or providing services directly connected to their core insurance business without threatening financial stability.
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