KMG: Prospectus exemptions for bank securities expanded — new €50 m/€75 m threshold and continuous-issuance rule
The Austrian Capital Market Act (KMG – Kapitalmarktgesetz) is amended to add two new rules relaxing the prospectus-exemption conditions for bank-issued securities: a threshold (below €50 million or €75 million over 12 months, depending on the applicable law version) that removes deposit-related conditions, and an explicit exemption for securities issued as continuous/permanent issuances (Daueremissionen). Credit institutions and their advisors are primarily affected.
What changed
Securities issued by banks or EEA credit institutions were already potentially exempt from the mandatory prospectus requirement (Prospektpflicht). Two substantive additions now apply. First, bank-issued securities classed as continuous/permanent issuances (Daueremissionen) explicitly qualify for the exemption. Second, where the total offering value stays below €50 million (older law version) or €75 million (current versions) calculated over any 12-month rolling period, issuers no longer need to satisfy the conditions that the securities represent repayable deposits (lit. c) and are covered by a deposit-guarantee scheme (lit. d).
Who is affected
Credit institutions and financial institutions offering debt securities publicly in Austria or the EEA are directly affected. Retail investors purchasing such instruments may not receive a prospectus if the issuer qualifies under the expanded exemptions.
What to look out for
The €50 m / €75 m threshold must be calculated across a rolling 12-month period — not per individual offering. The diff also contains purely editorial changes: the official abbreviation label 'KMG' is inserted at several structural points, and notes about provisions already repealed by BGBl. I Nr. 78/2005 are reformatted; neither of these alters any legal obligation.