Corporate Provision Fund

In 2002 the provisions for severance were fundamentally changed (known as “the ‘new’ severance payment scheme”). The Act on Severance and Retirement Funds for Salaried Employees and Self-Employed Persons (BMSVG – Betriebliche Mitarbeiter- und Selbständigenvorsorgegesetz), which entered into force on 1 July 2002, defines the activities of corporate provision funds and subjects them to supervision by the FMA. The taking and investment of severance contributions under the BMSVG also constitutes a banking activity that requires a licence pursuant to Article 1 para. 1 no. 21 of the Banking Act (BWG – Bankwesengesetz). Consequently corporate provision funds should be considered as special credit institution, and are required, in addition to fulfilling the provisions of the BMSVG, to comply with the provisions of the BWG, albeit with a few exceptions.