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Austrian Regulatory Body Widens Scope for Investment Firms

Vienna, Austria - The Austrian Financial Market Authority (FMA) has announced a significant expansion of its licensing scope for investment firms. As of this year, Class 2 or 3 investment firm licenses will be permitted to cover all nine investment services and ancillary services listed in Annex I of the Markets in Financial Instruments Directive II (MiFID II).

Simplifying Regulatory Process

This move is expected to simplify the regulatory process for investment firms operating in Austria, while maintaining high standards of financial stability and consumer protection. The FMA has implemented these changes through amendments to the Investment Firms Act 2023.

Licensing Requirements Clarified

In related news, the Austrian government has also clarified the licensing requirements for payment institutions, virtual currency providers, and other financial entities. According to the Payment Services Act 2018:

  • Non-credit institutions providing payment services must apply for a payment institution license.
  • The provision of account information services as a single payment service rendered by a non-credit institution requires only registration with the FMA.

Virtual currency providers without a credit institution license will also need to register with the FMA under the Financial Markets AML Act.

Bank Licensing Process

For those seeking to obtain a bank license in Austria, the licensing process involves a 12-month assessment period, during which the applicant must:

  • Submit a comprehensive application package
  • Provide additional information as requested by the FMA and European Central Bank (ECB)
  • Demonstrate that their institution is financially sound, with an initial capital of at least EUR5 million and a sufficient level of liquidity and solvency

The ECB plays a key role in assessing the application, particularly for CRR credit institutions. To facilitate this process, the FMA has established a contact form for legal inquiries about business models, which can be accessed through its website.

Expected Impact

The FMA’s expanded licensing scope is expected to enhance Austria’s competitiveness as a financial hub while maintaining the country’s commitment to robust regulatory oversight.