97. Regulation of the financial market authority (FMA) on investments of small insurance companies (small insurance companies investment regulation - kVU-KAV)
On the basis of article 90 par. 3 of the insurance supervision law 2016 - VAG 2016, Federal Law Gazette I no. 34/2015, is prescribed:
Scope of application
§ 1. This regulation applies to small insurance companies in accordance with § 5 No. 3 VAG 2016.
Principles of investment
2. (1) small insurance companies have in the selection of the assets in accordance with article 90, paragraph 1 to be taken into account profitability and the need for cash and cash equivalents, as well as on an appropriate mix and spread VAG 2016 on security. Also on the risks associated with the assets, in particular to ensure a sufficient credit rating of the issuer or counterparty is. Adequate risk surveillance is to ensure and document.
(2) once exploitable loans, credits and receivables may be used only if the debtor, guarantor and trust-management of Trustees in writing have renounced any set-off and right of retention,.
(3) securities may only be used if the depositary in writing waived any rights of set off and right of retention and the liability of the depositary or the interim custodian for the fault of third-party depositories contractually not limited or excluded. Securities are in a credit or financial institution, Z 11 which VAG 2016 entitled to the operation of the custody business in a Member State in accordance with article 5 (depositary), deposit, where to make sure is that each deposited securities at the depository constitute a Fund, which makes a special dimensions in the case of bankruptcy of the depositary.
(4) assets may be used pursuant to paragraph 1 if it is ensured that repayments and return solutions take on a bank account for the Bank opposite the small insurance company in writing waived any set-off and right of retention.
(5) assets, unless they are subject to no deposit scheme, are sufficiently secure to be kept.
3. (1) the following assets referred to in paragraph 2 are suitable for the investment of small insurance companies:
1 euro-denominated, unsubordinated debentures, which an "investment grade" rating a credit rating agency in accordance with Regulation (EC) No 1060/2009 on credit rating agencies, OJ No. L 302 of 17.11.2009 p. 1 as last amended by the directive of 2014/51/EC, OJ No. L 153 of the 22.05.2014 S. 1, have or what, that in the absence of a rating a stable earnings and financial position of the issuer by internal indicators are: a) bonds of a Member State, a local authority of a Member State, as well as securities, a Member State or local authority of a Member State shall be liable for reimbursement and remuneration;
b) debt securities of companies domiciled in a Member State, as well as debt securities issued by supranational organisations, which are admitted to trading on a regulated market in accordance with § 1 para 2 of the Exchange Act (BörseG), BGBl. No. 555 1989;
(c) other debt securities of companies domiciled in a Member State, as well as debt securities issued by supranational organisations, which can be disposed of within a reasonable period of time.
Structured debt securities where repayment of the principal not to entirely is guaranteed or the redemption amount in accordance with condition is in advance can be determined on the basis of an optional component as well as financial instruments, is embedded in a derivative of the or contain a structure that's difficult for the customer to understand the associated risks are not suited to the investment;
2. in euro-denominated shares and other shares with fluctuating income: a) of companies listed on a regulated market in accordance with § 1 para 2 BörseG.
b) to capital companies established in a Member State;
(c) share and legal rights to corporations domiciled in a Member State, whose main purpose is the acquisition of real estate and property rights registered in a public book, the yield drop or anticipating the construction of buildings on these properties and the management of these properties is provided that the value of real estate or property rights at the time of the acquisition by a Treasury expert opinion of a sworn judicial experts is demonstrated;
3. in euro-denominated shares in investment funds, which fall under one of the following categories: a) units in undertakings for the joint investment in transferable securities (UCITS) pursuant to § 2 para 1 of the investment funds act 2011 (InvFG 2011), Federal Law Gazette I no. 77, structured with the exception of UCITS within the meaning of article 36 para 1 of subpara. 2 of the Regulation (EU) No. are 583/2010 implementing directive 2009/65/EC with regard to the essential information for the investor and the conditions, to comply with that, if the essential information for the investor or the prospectus on another durable medium than paper or on a Web site will be available, OJ No. L 176 of July 10, 2010 p. 1 as amended by the amending OJ No. L 108 of July 10, 2010 S. 28;
I no. 80 / 2003, as well as investments in real estate funds, which are managed by an investment company based in another Member State and public supervision are subject to b) units of real estate funds in accordance with § 1 para 1 of the real estate investment Fund Act (immo InvFG), Federal Law Gazette;
4. in euro-denominated, unsecured loans: a) loans to a local authority of a Member State and loans and other receivables, a local authority of a Member State shall be liable for reimbursement and remuneration;
b) loans and other receivables to communities or such liability of municipalities with the exception of the capital Vienna, but only if income from statutory duties are pledged
(c) in a public register mortgage lending on real estate or on property rights in a public register, showing in a Member State are, up to a load of 60% of the market value of the property or the same property right, provided that this traffic value a Treasury report of a sworn judicial experts at the time of purchase is proven and the property is insured during the term of the loan adequately against the risk of fire;
5. in a public register in one Member State property and property rights, which earn a return or can be expected if the adequacy of the purchase price of a Treasury report of a sworn judicial experts or other appropriate means is proven and the property in the case of insured the buildings adequately against the risk of fire is;
6 in euro denominated deposits bank balances and cash in hand:. a) deposits with credit institutions authorised to the banking business in a Member State ("deposits");
b) cash on hand.
(2) the use of derivative financial instruments in accordance with article 90, par. 2 VAG 2016 is permitted only under the following conditions:
1. in the case of the use of derivative financial instruments to reduce the investment risk, small insurance companies have at any time in the to be able to prove the link between the derivative financial instrument and the relevant asset value in appropriate volumes of the entire holding period.
2. in the case of the use of derivative financial instruments to facilitate a proper management of the securities portfolio small insurance undertakings have at all times to be able to prove that derivative financial instruments are used to one of the following purposes: a) for the preparation of purchase and sales transactions;
(b) to reduce costs.
(c) to yield increase, if the existing portfolio is used to obtain additional income.
Also, small insurance companies have at any time in the to be able to prove the link between the derivative financial instrument and the relevant asset value in appropriate volumes of the entire holding period.
The following individual investments only section 4 (1) to be applied at the following rates on the basis of the book value of total investment ("single line"):
1. up to 2%: shares and other shares with fluctuating income pursuant to § 3 para 1 subpara 2 lit. a and b;
2. up to 10%: a) notes in accordance with § 3 para 1 subpara 1 lit. a to c of the same issuer;
b) shares and other shares with fluctuating income pursuant to § 3 paragraph 1 Z 2 lit. c of the same company;
(c) shares in investment funds pursuant to § 3 para 1 No. 3 lit. a and b of the same Fund;
(d) loans pursuant to § 3 para 1 No. 4 lit. a to c of the same issuer;
Real estate and property rights pursuant to § 3 para 1 sub-para. 5;
3. up to 25%: bank balances pursuant to § 3 para 1 No. 6 lit. a;
(2) the following investments may in aggregate only to be applied to the following sentences based on the book value of all investments ("total limit"):
up to 3% total: cash pursuant to § 3 para 1 No. 6 lit. b;
2 up to 10% in total: notes in accordance with § 3 para 1 subpara 1 lit. c;
3. up to 25% in total: Shares and other shares with fluctuating income pursuant to § 3 para 1 No. 2 lit. a and b including indirectly through investment funds pursuant to § 3 para 1 No. 3 lit. a shares held;
4. up to 30% total: a) property and property rights in accordance with article 3 par. 1 Z 5;
b) shares and other shares with fluctuating income pursuant to § 3 paragraph 1 Z 2 lit. c;
(c) units of real estate funds pursuant to § 3 para 1 No. 3 lit. b;
(d) loan and property rights pursuant to § 3 para 1 No. 4 lit. c;
5. each up to 50% total: a) notes in accordance with § 3 para 1 subpara 1 lit. b and loans pursuant to § 3 para 1 No. 4 lit. a and b;
(b) bank balances pursuant to § 3 para 1 No. 6 lit. a. (3) for short-term excess of investment limits in paragraphs 1 and 2 by market-related fluctuations in value or damage payments in the amount of up to 10% of the limit may be waived by immediate measures, unless a renewed compliance with investment limits can be reached promptly.
Entry into force
§ 5. This Regulation shall enter into force 1 January 2016.
Ettl Kumpf Müller