The Austrian Financial Market Authority (FMA) has issued a penal order imposing a EUR 5,000 fine on a natural person for engaging in unauthorised investment advice concerning financial instruments. The individual advised clients to dispose of fixed assets and invest in financial instruments, violating Article 94 and Art. 3 para. 2 no. 1 of the Securities Supervision Act 2018 (WAG 2018).

This action serves as a warning to individuals providing financial advice without proper authorisation. Regulated entities and individuals must ensure they possess the necessary licenses and adhere to the WAG 2018 regulations when offering investment advice. While the penal order is not final, it highlights the FMA's enforcement activities in this area. Compliance officers should review their advisory practices and licensing requirements to avoid similar violations.