Austria’s Financial Market Authority FMA today published a “Circular on the Capital Requirements and Required Solvency Margin for Investment Firms pursuant to the 2007 Wertpapieraufsichtsgesetz (WAG 2007; Securities Supervision Act)”; it is currently available in German only. In this Circular the FMA interprets the WAG 2007, clarifying the following provisions:
- Investment firms must at all times maintain sufficient capital.
- The equity capital must amount to no less than 25% of the fixed overheads of the most recent adopted financial statements, but in any case at least the initial capital required at the time of licensing.
- In addition, investment firms are required to maintain equity capital in the amount of at least 8% of the assessment base determined pursuant to Article22a of the Bankwesengesetz (BWG, Banking Act).
- Furthermore, investment firms must secure their operational risk through additional equity capital as required under section9 para5 no.2 and para6 WAG 2007.
This must be applied when preparing and auditing financial statements for financial years ending after 31 March 2009. Accordingly, equity capital must always be maintained in line with these requirements and proof of compliance must be provided to the authority upon request.
For further information please contact
Klaus Grubelnik (FMA Media Spokesperson)
+43/(0)1/24959-5106
+43/(0676)/882 49 516