Financial Market Authority (Austria)
| Österreichische Finanzmarktaufsichtsbehörde | |
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| Agency overview | |
|---|---|
| Formed | January 1, 2002 |
| Jurisdiction | Austria |
| Headquarters | Vienna, Austria |
| Agency executives |
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| Website | www |
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.[1] 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.[2]
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.[3] 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).[4]
History
[edit]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.[5]
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.[citation needed]
The entire insurance industry was liberalized by joining the EEA and later the European Union. Accordingly, the supervision was adjusted.[citation needed]
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).[3] This law was passed in the summer of 2001 after lengthy political discussions about the establishment of an integrated financial supervision system.[citation needed] 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.[6]
Tasks
[edit]The tasks of the FMA regarding the supervision of the Austrian financial market are divided into five main areas:
- Supervising banking capital, conduct,[7] and lending[8] (in cooperation with the Oesterreichische Nationalbank)[9][10][11]
- Supervising insurance capital,[12] conduct, and products[13]
- Supervising pension funds[14]
- Supervising securities markets[15]
- Supervising payment processing[16]
Consumer protection
[edit]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.[citation needed] As a supervisor, it must maintain objectivity towards all supervised entities and their clients.[citation needed] Damaged consumers must in principle sue for any claims for damages in civil courts.[citation needed]
However, information and complaints from consumers, investors or creditors against market participants are an important source of information for supervisory activities.[citation needed] The FMA investigates every customer complaint and checks whether it is based on systemic errors.[citation needed] 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.[citation needed] 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.[citation needed] However, if the complainant also sues under civil law, the court can inspect the files by way of administrative assistance.[citation needed]
Complaints about supervised companies can be submitted using a complaint form on the FMA website.[citation needed] 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.[17]
International cooperation
[edit]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).[citation needed]
On November 4, 2014, the European Central Bank assumed direct and indirect supervision for all banks in the euro area.[citation needed] 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").[citation needed] As the national resolution authority for Austria, the FMA is part of the SRM.[18]
Leadership
[edit]Helmut Ettl has been a member of the FMA Executive Board since 2008 and was last reappointed in 2022.[19] His current term of office runs until February 2028. Eduard Müller was appointed to the FMA Executive Board in 2020.[20] His term of office runs until July 2025. The Ministry of Finance advertised the position in April 2024[21], but no decision has yet been announced.
See also
[edit]References
[edit]- ^ "National supervisors". ECB Banking Supervision.
- ^ "Finanzmarktaufsicht" [financial market supervision] (in German). Ministry of Finance (Austria). Retrieved February 28, 2023.
- ^ a b "Finanzmarktaufsichtsbehördengesetz (FMABG)". Rechtsinformationssystem des Bundes (RIS). Retrieved 2025-02-28.
- ^ "European Supervisory Architecture". FMA. Retrieved 2025-02-28.
- ^ Holzer, Elke; Stickler, Rudolf (2011). Die österreichische Versicherungswirtschaft. Struktur, Wirtschaftlichkeit und Entwicklung [The Austrian insurance industry. Structure, business efficiency and development] (PDF) (in German). Vienna, Austria: Fachhochschule des bfi Wien. pp. 8–9. ISBN 9783902624215. Retrieved 2025-02-28.
- ^ "Finanzmarktaufsichtsbehördengesetz § 1". Rechtsinformationssystem des Bundes (RIS). Retrieved 2025-02-28.
- ^ 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.
- ^ "Benko-Banken im Visier der Finanzaufsicht" [Benko banks in the sights of financial supervisors]. Kronen Zeitung. October 29, 2022.
- ^ "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.
- ^ Leban, Karl (28 February 2023). "Immobilienkredite - Banken hadern mit FMA-Korsett" [Real Estate Lending - Banks quarrel with FMA Corset]. Wiener Zeitung.
- ^ "Wohnkredite: FMA soll Zwischenfinanzierung ausklammern" [Residential loans: FMA should exclude bridge financing]. Fonds Professionell.
- ^ Gray, Alistair; Shotter, James (3 December 2013). "Austrian regulator orders insurers to build up further provisions". Financial Times.
- ^ "Inflation: FMA warnt vor Unterversicherung" [Inflation: FMA warns of underinsurance]. Fonds Professionell.
- ^ "Pensionskassen - FMA". FMA. Retrieved 2025-02-28.
- ^ "Capital Markets - FMA". FMA. Retrieved 2025-02-28.
- ^ "Payment Institutions - FMA". FMA. Retrieved 2025-02-28.
- ^ "Einführung". Whistleblower-Hinweisgebersystem (in German). Retrieved 2023-02-28.
- ^ "ESMA and the Austrian Financial Market Authority welcome EURIBOR panel enlargement". ESMA. October 3, 2022.
- ^ Graber, Renate (2022-12-13). "Helmut Ettl folgt Helmut Ettl und kommt erneut in FMA-Vorstand". Der Standard (in German). Retrieved 2025-02-28.
- ^ "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.
- ^ Graber, Renate (2024-04-17). "Erneut große Eile: Regierung schreibt FMA-Chefposten schon jetzt neu aus". Der Standard (in German). Retrieved 2025-02-28.