Regulatory Alerts2008-06-27
Added · Updated
FMA Circular 02/2008 on Insurance Undertakings Acting as Tied Agents
The Austrian Financial Market Authority (FMA) clarifies that insurance undertakings are prohibited from acting as tied agents for legal entities under Article 28 of the 2007 Securities Supervision Act (WAG 2007). This restriction stems from Article 3 of the Insurance Supervision Act (VAG), which limits insurers to insurance business and directly connected activities to protect solvency and insured parties from non-insurance risks. The FMA concludes that the abstract threat to solvency posed by tied agency activities, including potential recourse claims, makes such engagement unlawful for insurance companies.
Share