AIF Regulation in Austria

Unlike 2018 & 2019, the number of applications for AIF registration in the Republic of Austria somewhat decreased in 2020. However, the country’s FDI sector is developing at a fast rate & it’s expected that more applications will be submitted in 2021.

Austria: Licensing Funds

Austria-registered investment companies generally qualify as AIFs. Establishing an AIF in Austria requires its managers to apply for a permit with the FMA. Obtaining an investment license in Austria is unnecessary if assets owned by a company don’t exceed five hundred million euros (or are less than one hundred million euros). Only registration with the FMA will be required. 

Those seeking to trade in assets in Austria will be required to comply with licensing & authorization requirements.

Obtaining an Investment License in Austria: Requirements

Obtaining an investment license in the Republic of Austria requires appointing no less than 2 managers. A registration application must include information about:

• shareholders whose stake exceeds ten percent;
• 3rd parties owning more than twenty percent of a fund’s shares;
• business plan;
• risk management, assessment, internal audit and conflicts of interest.

The regulator has 90 days to grant a license, providing it’s been given all the necessary information. If you want to register an AIF in Austria as a long-term investment company, you’ll have to apply to the FMA for permission.

Licensed AIFs must comply with disclosure requirements set by the supervisory authority. In particular, are required to submit annual & a quarterly review.

There’s no significant requirements for obtaining a trading license for AIFs in Austria (excluding situations when individuals performing management functions & referred to in the application leave their position ).

Selling a PEF in Austria

Acquiring an Austrian PEF’s stocks takes place after the conclusion of an M&A agreement in Austria. As a rule, funds try to use funds as efficiently as possible during transactions