Certificates are a modern and very popular form of investment. In the first quarter of 2023, private households in Austria had invested around € 5.4 billion in this investment category. However, its product world is a very heterogeneous one, offering range range of risk and return profiles. The Austrian Financial Market Authority (FMA) now offers a web-based information and comparison tool for retail investors that was developed in-house, which provides a good overview about the Austrian certificates market, explains the most popular categories of certificates and orders them according to risk, costs and performance. In addition, using the search function it is possible to upload the specific key information document (PRIIPs KID) about a certificate and to compare it agains the market as a whole – in terms for fees, performance and risk. Simple and clear graphs show the results in a transparent manner. The latest edition of the FMA consumer information series “Let’s talk about money” explains how consumers are able to use the “Zertifikate Lupe” for their investment purposes in order to make a financial decision that is appropriate for their financial possibilities and requirements.
“Certificates are an investment form that offer products for every preference in terms of risk and returns, as well as for every market situation. The products in this market are accordingly diverse. Our “Zertifikate Lupe” brings a high degree of transparency into this market, is simple to use, and allows retail investors to make a well-founded investment decision,” remarked the FMA’s Executive Board Members, Helmut Ettl and Eduard Müller: “The latest edition of ‘Let’s talk about money’ explains briefly and succinctly about what certificates are, how they work and how easily retail investors are able to use the ‘Zertifikate Lupe’. It is a further significant contribution to the priority of supervision of ‘collective consumer protection’.“
Certificates as an investment category
Certificates are bearer bonds, the redemption amount of which depends on an underlying asset – such as a share, an interest rate, a fund, a commodity, or currencies and similar instruments. Their payout profile is determined in advance. Certificates offer opportunities for returns in every market situation, and a clear and transparent repayment profile and investment solutions for investors from every risk/return profile. They range from investment products with capital protection (capital protection certificates) through to investment products without capital protection (discount certificates, equity-linked bonds, express certificates, index/participation certificates, outperformance certificates, bonus certificates) through to leverage products without knock-outs (warrants) or with a knock-out.
This edition of “Let’s talk about money” can be found at:
https://redenwiruebergeld.fma.gv.at/en/zertifikate-lupe
The “FMA-Zertifikate Lupe” itself can be found at:
https://www.fma.gv.at/en/investments/zertifikate-lupe
Journalists may address further enquiries to:
Klaus Grubelnik
+43 (0)1 249 59 – 6006
+43 (0)676 – 88 249 516
[email protected]