Regulatory Alerts2017-08-21
FMA Circular 02/2017 on Criteria for Assessment of Knowledge and Competence of Investment Advisors
The Austrian Financial Market Authority (FMA) issued this circular to define the specific knowledge and competence criteria that investment advisors and persons providing information about investment products must possess under Article 55 of the Securities Supervision Act 2018. The document mandates that relevant staff members demonstrate understanding of product risks, costs, market structures, and regulatory obligations, with higher standards applied to those providing investment advice compared to those merely providing information. Additionally, the FMA requires legal entities to ensure staff acquire these competences through training, verify appropriate experience of at least six months, and manage unsupervised service provision within a maximum two-year supervision period for unqualified personnel.