The financial market supervision reform came into force on January 1, 2008. Clearly defined interfaces between the Financial Market Authority (FMA) and the Oesterreichische Nationalbank (OeNB), avoidance of redundancies, significantly more staff for bank analysis and auditing and for securities supervision as well as a comprehensive corporate governance package – all of this will strengthen supervision in Austria.
OeNB and FMA are committed to working together in close cooperation in the area of banking supervision. An important element of this cooperation will be to merge and make mutually available supervisory data from both institutions. The analysis of this data will allow more intensive monitoring, both of individual market participants and the financial marketplace as a whole. In these efforts, the OeNB will carry out on-site inspections and be ultimately responsible for the analysis of individual institutions. The increase in staff numbers will generally allow banks, and in particular system-relevant institutions, to be audited more frequently and in greater depth in future. In addition, the intervals between follow-up audits will be shortened considerably. The OeNB is obliged to notify the FMA of any significant change in a bank’s risk situation as well as when a possible violation of legal requirements is suspected. Based on the analysis and audit results, the FMA will then become active as an authority and take appropriate official action. The FMA will continue to be the integrated, independent and autonomous supervisory authority for the entire financial market.
With respect to securities supervision, the FMA will significantly enlarge its staff in order to meet the more extensive requirements resulting from the Wertpapieraufsichtsgesetz 2007 (WAG; Securities Supervision Act) and the Börsegesetz(BörseG; Stock Exchange Act). Specifically, on-site inspections of investment services providers and investment firms will be conducted more frequently and in greater depth. With respect to insurance and pension company supervision, the FMA will apply stress tests more often as well as intensify on-site inspections.
In the age of globalisation of financial markets, while new business opportunities are continually opening up for financial institutions, these are set off in part by higher risks. It is the aim of every supervisory model to take account of these developments by expanding the relevant knowledge base in an ongoing manner. While utilising synergy effects, the new model is transparent and enhances efficiency.
For further information please contact
Klaus Grubelnik (FMA Media Spokesperson)
+43/(0)1/24959-5106
+43/(0676)/882 49 516