Financial Market Authority
Österreichische Finanzmarktaufsichtsbehörde
Agency overview
FormedJanuary 1, 2002 (January 1, 2002)
JurisdictionAustria
HeadquartersVienna, Austria
Agency executives
Websitewww.fma.gv.at

The Austrian Financial Market Authority (German: Österreichische Finanzmarktaufsichtsbehörde, FMA) is Austria's integrated financial regulatory authority and has been its national competent authority within European Banking Supervision since 2014.[2] It is responsible for the supervision of credit institutions (complementarily with the European Central Bank), payment institutions, insurance companies, pension funds, Fund managers, licensed securities service providers, and stock exchanges.[3]

The FMA is an independent authority within the framework of the Financial Market Authority Act (FMABG), and is thus not bound by any political directives in the exercise of its office. However, the Ministry of Finance (Austria) has the right to consent to individual FMA regulations. Since Austria is a member of the European Economic Area, the FMA works closely with European supervisory authorities including the European Banking Authority (EBA), European Insurance and Occupational Pensions Authority (EIOPA) and European Securities and Markets Authority (ESMA).

History

The origin of the FMA dates back to 1880. At that time, the Assecuranz-Bureau was set up under Emperor Franz Joseph I of Austria due to the steadily increasing distrust of the Ministry of the Interior to supervise the booming insurance industry.

The tasks were defined in the founding acts as follows:

"The state supervision of insurance companies must generally extend to the precise observation of the legal and statutory provisions, as well as to those circumstances which determine the ability of the institution to meet its future obligations at all times. The state supervisory authority therefore has to monitor in particular the correct calculation of the premium reserve, the correct investment of the capital, as well as the correct, complete and as clear as possible presentation of all financial and financial circumstances in the financial statements and statements of account...."

Insurance regulations have become more stringent over the years, but it was not until 1978 that the Federal Act on the Operation and Supervision of Contract Insurance re-regulated supervision.

The entire insurance industry was liberalized by joining the EEA and later the European Union. Accordingly, the supervision was adjusted.

On April 1, 2002, the FMA was created as an integrated regulator for all financial markets and began operations as an independent authority within the framework of the Financial Market Authority Act (FMABG). This law was passed in the summer of 2001 after lengthy political discussions about the establishment of an integrated financial supervision system. The FMA was established as an institution under public law with its own legal personality, and it was entrusted with the supervision of banks, insurance companies, pension funds and the entire securities sector.

Tasks

The tasks of the FMA regarding the supervision of the Austrian financial market are divided into five main areas:

  • Supervising banking capital, conduct,[4] and lending[5] (in cooperation with the Oesterreichische Nationalbank)[6][7][8]
  • Supervising insurance capital,[9] conduct, and products[10]
  • Supervising pension funds
  • Supervising securities markets
  • Supervising payment processing

Consumer protection

The FMA is not a consumer protection organization in the traditional sense, in that can help complainants in enforcing any claims for damages or claims against a supervised company. As a supervisor, it must maintain objectivity towards all supervised entities and their clients. Damaged consumers must in principle sue for any claims for damages in civil courts.

However, information and complaints from consumers, investors or creditors against market participants are an important source of information for supervisory activities. The FMA investigates every customer complaint and checks whether it is based on systemic errors. The FMA's complaint management and consumer hotline therefore provide information about the legal options and ensure that all information is checked with regard to relevant undesirable developments or possible violations of supervisory standards. Since a complainant does not have party status in an administrative procedure, the FMA does not provide any information on the progress and outcome of the proceedings because of their obligation to maintain privacy. However, if the complainant also sues under civil law, the court can inspect the files by way of administrative assistance.

Complaints about supervised companies can be submitted using a complaint form on the FMA website. Since January 2014, it has also been possible to report abuses or violations of supervisory law in a company that is subject to FMA supervision anonymously via a whistleblower process.[11]

International cooperation

The FMA is a member of various international bodies, such as: International Association of Insurance Supervisors (IAIS), International Organization of Securities Commissions (IOSCO) and Committee of European Securities Regulators (CESR).

On November 4, 2014, the European Central Bank assumed direct and indirect supervision for all banks in the euro area. The ECB has shared its supervisory responsibility with the national banking supervisory authorities in accordance with the policy of European Banking Supervision.

For banks that are subject to the direct supervision of the ECB in the "Single European Supervisory Mechanism" (SSM), a separate resolution authority was created at European level ("Single Resolution Mechanism - SRM"). As the national resolution authority for Austria, the FMA is part of the SRM.[12]

Leadership

Helmut Ettl has been a board member of the FMA since 2008, and Klaus Kumpfmüller became a board member in 2013. After Kumpfmüller was appointed by the supervisory board as the successor to Andreas Mitterlehner, who died in November 2019, as chairman of the Board of HYPO Oberösterreich, it became known that Eduard Müller, a former Austrian finance minister was appointed to the Board of Management on an interim basis.[13][14][15] In May 2020, Müller's appointment as a board member of the FMA was confirmed by the Council of Ministers.[16]

See also

References

  1. ↑ "Ettl-Nachfolge: Heikle Chefsuche für die FMA" [Ettl successor: Delicate boss search for the FMA] (in German). Der Standard. October 13, 2022.
  2. ↑ "National supervisors". ECB Banking Supervision.
  3. ↑ "Finanzmarktaufsicht" [financial market supervision] (in German). Ministry of Finance (Austria). Retrieved February 28, 2023.
  4. ↑ Lenz, Christian; Schagerl, Philipp (13 April 2015). "Sparvereine: Bis 1500 Euro im Jahr ohne Bürokratie" [Savings associations: Up to 1,500 euros per year without any bureaucracy]. Der Standard.
  5. ↑ "Benko-Banken im Visier der Finanzaufsicht" [Benko banks in the sights of financial supervisors]. Kronen Zeitung. October 29, 2022.
  6. ↑ "FMA und OeNB: Das sind die Schwerpunkte in der Bankenaufsicht für 2023" [FMA and OeNB: These are the priorities in banking supervision for 2023] (in German). Fonds Professionell. February 2, 2023.
  7. ↑ Leban, Karl (28 February 2023). "Immobilienkredite - Banken hadern mit FMA-Korsett" [Real Estate Lending - Banks quarrel with FMA Corset]. Wiener Zeitung.
  8. ↑ "Wohnkredite: FMA soll Zwischenfinanzierung ausklammern" [Residential loans: FMA should exclude bridge financing]. Fonds Professionell.
  9. ↑ Gray, Alistair; Shotter, James (3 December 2013). "Austrian regulator orders insurers to build up further provisions". Financial Times.
  10. ↑ "Inflation: FMA warnt vor Unterversicherung" [Inflation: FMA warns of underinsurance]. Fonds Professionell.
  11. ↑ "Einführung". Whistleblower-Hinweisgebersystem (in German). Retrieved 2023-02-28.
  12. ↑ "ESMA and the Austrian Financial Market Authority welcome EURIBOR panel enlargement". ESMA. October 3, 2022.
  13. ↑ "Ex-Finanzminister soll FMA-Vorstand werden" [Ex-Finance Minister is to become FMA board member]. Kurier. 2020-01-24. Retrieved 2020-01-24.
  14. ↑ Kamil Kowalcze (2020-01-23). "Ex-Finanzminister wird FMA-Vorstand" [Ex-finance minister becomes FMA executive]. Die Presse (in German). Retrieved 2020-01-24.
  15. ↑ Hanna Kordik (2020-01-28). "Ex-Finanzminister wechselt zur FMA" [Ex-finance minister is changing to the FMA]. Die Presse (in German). Retrieved 2020-01-28.
  16. ↑ "Eduard Müller als neuer FMA-Vorstand bestätigt" [Eduard Müller confirmed as new FMA board member]. Salzburger Nachrichten (in German). 2020-05-20. Retrieved 2020-05-21.
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