2024 heralds a range of relevant changes and innovations to supervisory law. In addition, over the course of this year a number of central regulatory policy decisions and the finalisation of significant regulatory proposals at European Union level are to be expected. The Austrian Financial Market Authority (FMA) presents information about the most significant developments:<\/p>
Within the scope of new sustainability reporting, based on the European Sustainability Reporting Standards, those entities that were hitherto obliged to draw up a non-financial report, should also report for the first time about the three pillars of sustainability reporting: Environment, Social und Governance (ESG) for the 2024 financial year. The applicable standards set out in the European Corporate Sustainability Reporting Directive (CSRD) to do so still have to be transposed into national law.<\/p>
Furthermore, from 1 January 2024, non-financial undertakings will also report for the first time now that the relevant delegated act exist within the scope of their non-financial reporting obligations in depth about all six environmental objectives stipulated in the EU Taxonomy Regulation. Financial undertakings will also be required to report as of this reporting date about their conformity with the first two environmental objectives of the taxonomy for the first time. This information will be supervised by the FMA within the scope of its Accounting (Enforcement) supervision.<\/p>
Furthermore, the European Green Bond Standard will enter into force at year-end 2024. This is a voluntary set of rules for issues green bonds. In the future it will be possible to use the designation “European Green Bond” where the strict rules contained in the standard are observed. The European Green Bond Standard is considered as the gold standard for the market, and affords investors comprehensive inspection rights regarding how the money they invest is used. In contrast with the previous system of self-control, the FMA and ESMA<\/abbr> now for the first time have a mandate to ensure that the requirements set out in the standard are duly observed. This constitutes a further significant step towards the prevention of greenwashing within the EU.<\/p> The EU Regulation on Markets in Crypto-Assets (MiCAR), which has defined a harmonised EU legal framework for the crypto market for the first time, will apply from 2024. A range of new duties have been conferred on national competent authorities in this area. In the future, these will for example include oversight for transparency and disclosure obligations for the issuance and trading in crypto-assets, authorisation requirements and ongoing supervision of crypto-asset service providers (CASPs) and issuers of crypto-assets, and ensure that investor and consumer protection regulations are observed for the issuing, trading and custody of crypto-assets. The application of new rules will occur in a number of steps: Regulations about Asset Referenced Tokens, (ARTs) and E-Money Tokens (EMTs) will already apply from 30 June 2024, while the regulations regarding the authorisation and ongoing supervision of CASPs<\/abbr> will apply from 30 December 2024.<\/p> The protection of motoring accident victims has improved as a result of the Act amending Motoring Insurance Law of 2023 (Kraftfahr-Versicherungsrechts-Änderungsgesetz 2023) which already entered into force on 23 December 2023. Victims are now compensated not only in the event of the default or insolvency of the liability insurer, but also in the case of accidents with vehicles that are not subject to requirement to be insured or for which insurance contracts have lapsed. Furthermore, a further innovation is the fact that accidents abroad as well as accidents on private land are also covered. At the FMA’s initiative, during the course of transposing the Directive, the Motor Vehicle Liability Insurance Act of 1994 (KHVG; KFZ-Haftpflichtversicherungsgesetz 1994) has been extended, with insurers now explicitly obliged to settle claims promptly, since a quick approval for repair or prompt reimbursement of compensation is essential for the injured party.<\/p> During the course of the 2024, the publication of the revised regulations in the area of banking supervision, (CRR III<\/abbr> and CRD VI<\/abbr> ) will take place – referred to as Finalising Basel III or the Banking Package. Significant innovations will relate to the regulatory areas of internal modelling, regulation of third-country branches, fit & proper, and proportionality. CRR III<\/abbr> enters into force on 01.01.2025. CRD VI<\/abbr> will be required to be transposed into national law within 18 months following its publication in the Official Journal of the European Union.<\/p> In addition, in 2024 the finalisation of the Insurance Recovery and Resolution Directive (IRRD) is expected, which will create a recovery and resolution framework for insurance and reinsurance undertakings. The FMA as National Resolution Authority will also gain new competences in this regard. For the actual competence for the resolution of (re)insurance undertakings at national level, it will however first require the transposition of the Directive into Austrian law.<\/p>MiCAR as the new EU regulatory standard in the crypto sector<\/h2>
Changes in Motor Insurance<\/h2>
Relevant European policy decisions and finalising of legislation in 2024<\/h2>