Scope of application, investment principles and investment management

(1) This Ordinance applies to the investment of the restricted assets of
1. Pensionskassen (occupational pension funds) within the meaning of section 232 of the Insurance Supervision Act,
2. death benefit funds within the meaning of section 218 of the Insurance Supervision Act, and
3. small insurance undertakings within the meaning of section 211 of the Insurance Supervision Act.
(2) The insurance undertakings referred to in subsection (1) number 1 must, when investing their restricted assets, comply with the general investment principles of section 124(1) in conjunction with section 234h of the Insurance Supervision Act. The insurance undertakings referred to in subsection (1) numbers 2 and 3 must, when investing their restricted assets, comply with the general investment principles of section 215(1) of the Insurance Supervision Act.
(3) The insurance undertakings referred to in subsection (1) must ensure compliance with the general investment principles applicable to them and with the following specific provisions of this Ordinance through qualified investment management, suitable internal investment principles and control procedures, a strategic and tactical investment policy, and further organisational measures. This includes, in particular, monitoring all risks on the asset and liability sides of the balance sheet and the relationship between the two, as well as examining the resilience of the investment portfolio to particular capital-market scenarios and investment conditions.
(4) The insurance undertakings referred to in subsection (1) must ensure that they are able at all times to respond appropriately to changing economic and legal conditions, in particular changes in the financial and real-estate markets, catastrophic events involving losses on a large scale, or other unusual market situations. When investing restricted assets in a state that is not a state of the European Economic Area (EEA) or a full member state of the Organisation for Economic Co-operation and Development (OECD), the legal risks associated with the investment must be examined comprehensively and with particular care.
(5) The supervisory authority shall determine more detailed requirements concerning the provisions of this Ordinance and the disclosure and notification obligations of the insurance undertakings referred to in subsection (1).