Erste Bank JPMorgan Merrill Lynch International

Persons that would like to directly or indirectly acquire an interest in a domestic insurance
company that would result in them holding 10% or more of the share capital or voting rights or
being able to exert substantial influence on management in some other way must notify the
FMA of this. Insurance companies must also inform the FMA as soon as they become aware of
any acquisitions/disposals of shares requiring notification to the FMA.
Insurance companies that are in an insurance group and are subject to additional supervision
must also provide the FMA with information on internal group transactions.
Supplementary Supervision
The Insurance Groups Directive (Directive 98/78/EC on the supplementary supervision of
insurance undertakings in an insurance group) has been incorporated into the VAG, providing for
additional supervision of companies belonging to an insurance group. Supplementary supervision has
the purpose of avoiding gaps in prudential supervision in the case of internationally active insurance
groups, especially in the area of capital resources requirements. The VAG provides for supervisory
authority of the FMA vis-à-vis group companies (shareholders, subsidiaries and sister companies) of
an Austrian insurance undertaking, even if such group companies have their seat outside of Austria.
The Austrian insurance undertaking is obliged to provide for adequate measures which provide to the
FMA access to information of group companies which are covered by the supplementary supervision.
Additionally Directive 2002/87/EC on the supplementary supervision of credit institutions, insurance
undertakings and investment firms in a financial conglomerate has been implemented into the
Austrian Financial Conglomerates Act (Finanzkonglomerategesetz — FKG) and the VAG. In this
context the FKG now expands supplementary supervision to all group companies of a financial
conglomerate. Financial conglomerates are large financial groups active in different financial sectors,
often across borders.
International Cooperation
The increase in cross-border insurance activities and the formation of internationally operating
groups of companies and conglomerates has led to close collaboration between insurance supervisory
authorities. The insurance supervisory authorities cooperate in the International Association of Insurance
Supervisors (IAIS), in the OECD Insurance Committee, in the EU Insurance Committee and in
the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS).
Money Laundering and Counter-Terrorism
In addition to existing supervisory obligations to combat money laundering and the financing of
terrorism, other wide-ranging obligations regarding the exercise of diligence, verification and reporting
were added to the VAG, which implement the directive on prevention of the use of the financial system
for the purpose of money laundering and the financing of terrorism (2005/60/EC) and the directive on
the implementation of the aforementioned directive with regard to the definition of the term “politically
exposed persons” and the specification of the technical criteria for the simplified obligations of
diligence as well as the exemption in cases where financial transactions are only occasionally
performed or only to a very limited extent (2006/70/EC).
The implementation of European Parliament and Council Regulation (EC) No. 1781/2006 from
November 15, 2006, on the transmission of information pertaining to persons ordering money
transfers, results in further obligations.
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