1E9Ct5D

A criminal investigation is under way against a member of the board for a crimepunishable with a sentence of more than one year of imprisonment, until theinvestigation has ended;A member of the board of directors does not have the appropriate training or thenecessary characteristics and experience;Not at least one member of the board is a resident of Austria;Not at least one member of the board speaks German;The pension fund does not have at least two members of the board of directorsand if the articles of association do not exclude a right of sole representation or acommercial power of attorney for the entire business operation;A member of the board of directors of the pension fund entity has another mainoccupation besides acting for the pension fund;With regard to corporate pension funds, the intra-business agreement and/or othercontracts with regard to the formation of the corporate pension fund do not complywith the provisions of the Company Pensions Act.The Financial Market Authority also has the power to withdraw licences.iiForms of Pension ArrangementsThe pension arrangements between the employer and employee will be contained in eitherthe contract of employment or an applicable enterprise agreement and they must be inaccordance with the provisions of the Company Pensions Act. The employer is then requiredto enter into a contract with the pension fund and this contract must correspond with theagreement between the employer and the employee.iii Legal StructureAs stated above, a non-state pension must be by way of an undertaking by the employerwhereby the contract regulates the duties to be performed by the pension fund in relation tothe beneficiaries. The undertaking does not have to be in writing to be enforceable.iv Registration RequirementsThere is no requirement as such to register a non-state pension arrangement with any officialregistration body. However, as a pension fund is not permitted to operate without a businesslicence granted by the Austrian Financial Market Authority, details of all operating pensionfunds in Austria will be maintained by the Authority.vTypes of InvestmentsThe Pension Funds Act contains the following provisions on investments by pension funds:Article 1(3) – Pension funds may not carry out any business which is not related to theadministration of pension funds. By implication this excludes speculative activities.Article 14 – Hedging transactions are only permitted when they serve as auxiliary transactionsin connection with securing investments according to Article 25.Article 25(1) – A pension fund must invest its assets in either:1. - Investment stock in which the payment of a fixed amount is promised,- loans to the Republic of Austria, its provinces or another EU member country, or loansin relation to which the Republic of Austria, its provinces, an EU country or a bank areliable for repayment and interest,- mortgage loans,- loans to employers contributing to the pension fund.- 63 -