Issuing activities in the Austrian market slowed down in Q1 2012 due to the difficult economic environment and the resulting scepticism displayed by investors. Between January and March applications were presented for approval for just 20 prospectuses, eight fewer than in the previous quarter and a reduction of 12 in comparison with Q1 2011. Equally, the number of supplements approved by the FMA fell to eight, from 17 in Q1 2011 and 21 in Q4 2011. As in the previous quarter, two applications for approval were withdrawn. The approvals that were granted meant that capital market participants gained access to issues amounting to a total volume of around €15 billion. The news was disclosed in the Quarterly Report on Prospectus Supervision published today by the FMA.
In relation to the categories of issuers, the fall in the number of prospectus approvals for building loan banks was particularly noticeable. In Q4 2011, approvals were granted for prospectuses from five issuers, while only two issuers had prospectuses approved in Q1 2012. Equally, there was also a fall in IPOs, capital increases and listing prospectuses from two in Q4 2011 to one in Q1 2012. The number of basic prospectuses approved rose, in contrast, from two to five. In the case of bonds there was a rise from zero to two. The same picture was obtained from a year-on-year comparison of Q1 2011. However, this comparison also revealed a fall in prospectus approvals in the issuer categories “building loan banks” from three to two, and “IPOs, capital increases and listing prospectuses” from two to one. Moreover, there was a rise in approvals for basic prospectuses (Q1 2011: 4, Q1 2012: 5) and bonds (Q1 2011: 1, Q1 2012: 2).
Looking at notifications received from other EEA Member States, the total number of prospectus notifications received in Q1 2012 rose to 84, from 61 in Q4 2011. At the same time, the number of notifications received in relation to supplements fell by around a half, from 983 to 519. The number of prospectus notifications issued by the FMA remained at three, as in Q4 2011. In contrast, the number of notifications issued for supplements fell from 10 in Q4 2011 to six (Q1 2012). During the comparable period in the previous year, notifications were received for 87 prospectuses and 411 supplements. In respect of notifications issued, four prospectuses were recorded in Q1 2011 along with four supplements.
Following violations relating to public offerings and the advertising of securities and investments, and breaches of obligations in relation to publication, reporting and depositing of documents under the Kapitalmarktgesetz (KMG; Capital Market Act), the FMA was involved in administrative penal proceedings in relation to nine cases in Q1 2012 and forwarded four reports to the public prosecutor’s office.
You can find the full Quarterly Report (in German) on the FMA website at: https://www.fma.gv.at/kapitalmaerkte/aufsicht-ueber-kapitalmarktprospekte/quartalsberichte/
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson)
+43 (0)1 24959 5106
+43 (0)676 882 49 516