Regulatory Alerts2005-11-10
Added · Updated
FMA Circular on Overfunding in Unit-Linked Life Assurance
The Financial Market Authority issued this circular to define the conditions under which excess assets in unit-linked life assurance Deckungsstock groups are tolerated. The regulator permits overfunding only when resulting from necessary advance purchases or accounting settlements, provided it remains at the absolute minimum and does not exceed 5% of technical provisions. A specific exemption allows up to €400,000 in overfunding if technical provisions are below €8 million, while also clarifying that these rules apply exclusively to unit-linked rather than index-linked products.