Regulatory Alerts2017-08-21
FMA Circular on Criteria for Assessing Knowledge and Competence of Investment Advisors and Product Information Providers (Article 55 WAG 2018)
The Austrian Financial Market Authority (FMA) issues this circular to establish mandatory assessment criteria for the knowledge and competence of investment advisors and staff providing information about investment products, in compliance with Article 55 of the Securities Supervision Act 2018 and ESMA Guidelines. The document delineates distinct competency standards for product information providers versus investment advisors, requiring the latter to demonstrate advanced expertise in suitability assessments, portfolio management, and cost analysis. Financial institutions must validate staff qualifications through documented training or examinations, mandate a minimum of six months relevant experience for unsupervised service, restrict unqualified personnel to a maximum two-year supervised period, and enforce at least 15 hours of annual continuous professional development.