Securities Litigation and Enforcement in Austria
Pierre-Henri Conac and Martin Gelter (eds.), GLOBAL SECURITIES LITIGATION AND ENFORCEMENT (Cambridge University Press 2019)
38 Pages Posted: 8 Feb 2016 Last revised: 12 May 2020
Date Written: February 7, 2016
Abstract
This chapter surveys Austrian securities law and its enforcement. Sections 1 and 2 provide an overview of the Austrian financial market and the applicable regulatory framework, particularly with respect to false and misleading disclosures by issuers. Section 3 surveys securities regulation in Austria, focusing on disclosure requirements and enforcement activities set by the Austrian Financial Market Authority (FMA). Section 4 discusses private enforcement, looking both at legal requirements for the liability of both the issuer and responsible individuals, as well as procedural aspects. In the past years, so-called “Austrian-style class actions”, a technique developed by practicing attorneys, have gained in significance. While these lawsuits have enabled large numbers of investors to aggregate their claims, they are based on an opt-in system and therefore do not create the opportunities and incentives of American securities class actions. The chapter also discusses information asymmetries between plaintiffs and defendants as well as conflict of laws issues in securities litigation.
Keywords: securities litigation, Austrian-style class actions, FMA, issuer liability, ownership structure, FMA, Vienna Stock Exchange
JEL Classification: G38, K22
Suggested Citation: Suggested Citation