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Overseeing the setting up & managing of PEFs in the Republic of Austria is an exclusive prerogative of the FMA, Austria’s number one financial regulator.

Setting up & running a PEF in the Republic of Austria requires no constant supervision. Potential investors can only derive financial benefits by exercising their informational rights laid down in an AoA & partnership agreement & reporting their commitments as per corporate & accounting legislation.

Requirements

Setting up PEFs in the form of AIFs & running them by licensed AIFMs doesn’t require FMA approval (and the same goes for EUVECAs & ELTIFs).

Setting up PEFs as an AIF in the Republic of Austria doesn’t require any registration (the only exception to this rule are cases involving entering into corporate registers after being incorporated).

Austria: Registering Investment Advisors

PEFs created in the form of AIFs must be run by licensed AIFMs who require no other permits. AIFMs are required to apply for a PEF asset manager license in Austria.

PEF Managers: Requirements

Austria-based managers of AIFs are required to obtain a PEF manager license from the FMA (the only exception to this rule are managers of small-sized AIFs whose total asset value doesn’t exceed one hundred million & five hundred million euros. Only some of AIFMG rules are applicable to them; they may not obtain a license & should only apply for registration with the FMA, either.

AIFMs must have no less than one hundred twenty five thousand euros (for external managers) & three hundred thousand euros (for internal managers) in statutory capital. They must also have enough money to cover twenty five percent of their yearly expenses. In addition, they must meet more stringent equity regulations if the total value of assets under their management exceeds two hundred mln euros. 

Please note that individuals seeking to obtain the AIFM license in the Republic of Austria must have sufficient expertise & successfully pass FMA qualification tests.

Contributions

Normally, Austrian fund managers & investment advisors mustn't abide by any particular rules. However, political parties receiving donations in excess of fifty thousand euros must report them to auditing authorities which will then publish this information on their websites. There’s a law whereby political parties in the Republic of Austria aren’t permitted to accept donations exceeding two thousand five hundred euros from individuals or organizations located abroad. 

Conclusion

After the AIFMG was enacted, establishing PEFs in Austria has qualified as establishing Austrian AIFs. Setting up AIFs in the Republic of Austria requires obtaining prior approval from Austrian financial regulators, particularly if such entities are run by registered managers. If they’re managed by licensed AIFMs, they must apply for registration with the FMA.

Considering setting up a PEF in the Republic of Austria? Looking for information on PEF regulation in the Republic of Austria? Why not get in touch with IQ Decision UK? Our team of legal advisors will be delighted to lend you a helping hand with whatever legal issues you’re facing in this regard.