Notes on Prospectus Approval: checking of prospectuses is not a product approval
Prospectus approval by the FMA does not constitute a product approval and does not make any statement about the risk of the investment and the credit quality of issuers
New technology developments, such as Initial Coin Offerings (ICOs) or Initial Token Offerings (ITOs) using the blockchain / Distributed Ledger Technology, present new challenges for supervision. The Austrian Financial Market Authority is generally open to developments, and neutral in terms of the underlying technology used. Currently there is no legally recognised classification of tokens, either in Austria or on a European or international level. “Security tokens” are one variation of tokens, which from an economic point of view are very similar to classic bonds or shares or participation rights.
From a supervisory law perspective the public offering of security tokens may make the drawing-up of a securities prospectus necessary, where the uniform term under European law of transferable securities is fulfilled. Securities prospectuses are approved by the FMA in accordance with the provisions in the Prospectus Directive only with regard to their completeness, coherence and comprehensibility be way of being compared with the harmonised substantive provisions under European law. The correctness of the information contained in a securities prospectus, in particular with regard to guaranteed features (e.g. opportunities for high yield, absolute security, low volatility) are not reviewed by the FMA. The respective issuer assumes liability for the correctness of the information listed in a securities prospectus.
All risks in relation to the issuer and the securities issued are to be presented in a prospectus, where doing so is of material importance for making an investment decision. This also applies for the economic and legal risks associated with the using of new technologies, about which the investors are made aware. It is therefore explicitly recommended where new technologies are used to study the risk advice presented in the approved prospectus carefully.