As prescribed by MiFID, under Austrian law all information by investment firms to clients must be fair, clear and not misleading. But what’s fair? The Supreme Administrative Court (VwGH) recently found that the use of technical terms of the capital market may be not fair; the addressees of a certain offer by a bank had included retail clients and the offer had used the term “Qualified Investor”. If the technical term is relevant for the understanding of the information, it must be explained, ruled the court. (2014/02/0089)
Fairness is in the eye of the beholder
