Deposit insurance and investor compensation in Austria are regulated in the Federal Act on Deposit Insurance and Investor Compensation in Credit Institutions (Deposit Insurance and Investor Compensation Act - ESAEG). These provisions are the transposition of corresponding EU directives into national law.

Einlagensicherung AUSTRIA Ges.m.b.H (ESA) is the so-called "uniform" protection scheme and as such also responsible for investor compensation. Every credit institution with its registered office in Austria that wishes to provide investment services requiring protection must be a member of ESA.

Only those credit institutions that belong to one of the two Austrian institutional protection schemes - S-Haftungs GmbH (Sparkassen), Österreichische Raiffeisen-Sicherungseinrichtung eGen (Raiffeisen) - are exempt from this mandatory membership in ESA.

If a credit institution is not affiliated to any of these three guarantee schemes, its licence to provide investment services requiring guarantee expires. The Financial Market Authority (FMA) provides information on the current existence of a licence and its content on its website.

The ownership structure of a credit institution is irrelevant for investor compensation; the existence of an Austrian licence is essential.

If a credit institution with its registered office in one of the EU member states operates a branch in Austria, the investment services requiring protection offered in that branch are subject to investor compensation in the country in which the credit institution has its registered office. In such a case, investors must therefore generally assert any claims according to the legal provisions of the country of domicile.

A credit institution with its registered office in one of the EU member states may additionally join an Austrian investor compensation scheme for investment services requiring protection which it provides in a branch in Austria (voluntary membership). However, investors would only be additionally covered to the extent that the credit institution's country of domicile with the mandatory coverage there provides less coverage than Austria in terms of type and scope. So far, no credit institution with its registered office in one of the EU states has made use of this additional protection in Austria.

Frequently asked questions on investor compensation

 

Which claims are covered by the investor compenstion?

In principle, all claims against the bank from

  • the safekeeping and administration of securities for others (custody business),
  • trading by the credit institution in money market instruments, financial futures contracts, interest rate futures contracts, forward rate agreements, interest rate and foreign exchange swaps and equity swaps, securities and instruments derived therefrom,
  • the participation of the credit institution in third party issues (loro issuing business),
  • the collection and assessment of severance pay and self-employed pension contributions (company pension fund business),
  • portfolio management by managing portfolios on an individual customer basis with discretionary mandate of the customer, provided that the customer portfolio contains one or more financial instruments (investment services pursuant to section 3 para 2 no. 2 Securities Supervision Act 2018)

When is the investor compensation paid?

Securities held in a customer custody account in accordance with the agreement are merely held in safe custody by the Bank. They are the property of the customer and must be delivered to the customer at any time upon request or transferred to another securities account designated by the customer. They are therefore in principle neither a case for deposit protection nor for investor compensation.

Securities that are held in a client custody account, but cannot be transferred or disbursed by the Bank to another custody account in a payout event, are secured up to a maximum amount of EUR 20,000.00 within the framework of investor compensation.

Claims arising from credit balances of accounts which could be indemnified both as a covered deposit and as a claim from securities transactions subject to security obligations are to be indemnified as a covered deposit within the framework of deposit protection (article 51 (1) Deposit Guarantee Schemes and Investor Compensation Act).

Amounts that originate from the reflow from the customer's securities (e.g. dividend income, coupon payments, redemptions or sales proceeds) are secured as a deposit in an account of the customer within the framework of deposit protection up to a maximum payout amount of EUR 100,000.

Income accruing between the occurrence of the payout event and the disbursement of the secured amount is considered within the framework of investor compensation (article 50 (2) Deposit Guarantee Schemes and Investor Compensation Act).

Please note that article 47 (2) Deposit Guarantee Schemes and Investor Compensation Act excludes certain claims from securities transactions from the coverage within the scope of investor compensation.

If the respective prerequisites for the claim are met, claims from deposit protection and investor compensation can be exercised independently of each other; there is no aggregation.

Member institutions

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