Generally, an Austrian license may only be obtained by an Austrian company (this means that in the case of foreign financial services providers, an Austrian subsidiary needs to be established). Under some laws, including the BWG, a license may also be granted to a non-EEA branch office of a foreign financial services provider. Note that EEA financial institutions may also passport their home-country license into Austria (see "Passporting" in question 7).

The licensing procedure itself will also depend on the license/activity in question. Typical requirements include the following:

• Location of place of establishment and head office in Austria
• Legal form of the entity (often a limited liability company or a stock company)
• Size, composition and qualification of management body, including residence and capabilities of directors
• Aptitude of qualified shareholders
• Appropriate resources, usually including minimum initial capital amounts and amounts at the management's free disposal
• A forward-looking business plan (that is usually the most complex document in the licensing procedure)
• Organizational (with regard to monitoring, controlling and limiting business risks and operational risks, establishment of a compliance organization) and staffing requirements (fitness, training and capabilities of certain officers)
• Appropriateness of articles of association / statute
• Availability of the entity for effective supervision by the FMA, meaning the absence of impediments arising from the applicant’s close relation to other natural or legal persons or the applicability of third-country regulations preventing the FMA from carrying out its monitoring duties

This list represents typical requirements only; specific requirements will depend on the type of license sought.

Sanctions

The unauthorized provision of regulated services constitutes a punishable administrative offense and can constitute a criminal offense (such as fraud) punishable by the courts. The administrative fine for the unauthorized provision of regulated deposit or lending services amounts up to EUR 5 million or twice the amount of the benefit received from the breach.

The unauthorized provision of other banking, insurance or investment services may be subject to a fine of up to EUR 100,000.

In addition, whoever conducts a regulated financial activity without the necessary authorization may not be entitled to any consideration for such activity, such as, in particular, interest and commissions. Agreements to the contrary as well as sureties and guarantees relating to such unauthorized transactions would be without legal effect.