UIA-Newsletter of the Mergers & Acquisitions Commission
In Austria, services in connection with securities and certain other financial instruments are provided by banks and commercial service providers, i.e. in particular property finance consultants and administrators of movable property. The financial services business was now defined as bank transaction. Thus, this sort of bank service can in the future be rendered also by non-banks - i.e., securities investment service-rendering companies - on the basis of a license according to the new Securities Supervision Act.
For the protection of the investor, the WAG contains rules of good behavior, damages regulations and consumer protection provisions. In addition, it contains organization and licensing provisions for securities investment service-rendering companies. For supervising the securities market and the financial services business, the Federal Securities Supervision Authority (Bundes-Wertpapieraufsicht, BWA), a public corporation, was established.
The Securities Supervision Act served inter alia to implement the Council Directive on Investment Services in the Securities Field . Therefore, it is now possible for securities companies and enterprises exclusively dealing with securities business (exclusive securities trading companies) which due to the lack of a banking license could not be active in the whole Community on the basis of the Council Directives on the Coordination of Laws, Regulations and Administrative Provisions relating to the Taking-up and Pursuit of the Business of Credit Institutions, to become active also in Austria . The activities of EU-securities trade companies in Austria are subject to the Austrian Banking Act .