Regulatory Alerts2005-11-10
FMA Circular 06/2005 on Changes to Insurance Undertaking Audit Regulations (VAG 1978)
The Financial Market Authority (FMA) issued Circular 06/2005 to update statutory auditor regulations for insurance undertakings following the 2005 Insurance Supervision Act amendments. The circular requires supervisory boards to place audit engagements, enforces mandatory auditor rotation after five consecutive opinions, and aligns exclusion grounds and liability insurance rules with the Commercial Code. It additionally clarifies dismissal conditions, abolishes the gross versus slight negligence distinction for auditors, and strengthens supervisory board oversight through newly commissioned statutory auditors.
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