PRESS RELEASE
FMA repudiates the repeated false factual statements or
misinterpretations of facts by Meinl Bank
(Vienna, July 17, 2008)
The Financial Market Authority FMA wishes to correct the repeated false factual statements and
misinterpretations of facts made by Meinl Bank to the media:
Peter Weinzierl, Member of the Management Board of Meinl Bank, claimed in an interview with the
weekly magazine “News” (No. 29/08 of July 17, 2008, page 46ff) as follows: “MEL coordinated
both its prospectuses and the share buybacks with the FMA. Now they don’t seem to remember
any more what they promised.”
With regard to the prospectuses we wish to state:
The law stipulates that the FMA, for it to approve a prospectus, must have verified the
completeness of the statutory information, and also that the presentation is free of
contradiction and comprehensible to an informed investor. Only the issuer is liable for
ensuring that the information is correct and that no significant details have been omitted.
This does not require “coordination” with the Authority. If the three criteria are met, the
issuer is legally entitled to the approval of its prospectus by the FMA.
With regard to the share buybacks we wish to state:
In the course of a share buyback scheme, Austrian law does not stipulate facts that would
have to be approved by the FMA in advance. In addition, the FMA does not have to be
informed in advance either. Therefore, there was no advance coordination between the
FMA and MEL. The FMA only learnt about the certificate/share buyback scheme after it
had been carried out. Answering a lawyer’s abstract legal enquiry can in no way be
interpreted as the Authority having granted its approval, also for lack of a legal basis.
Besides, the FMA expressly pointed out that Austrian laws would of course have to be
adhered to and made a particular reference to the Austrian Stock Exchange Act (BörseG).
In an APA-OTS press release dated July 14, 2008 Meinl Bank claimed: “One year of intensive
investigations by the Oesterreichische Nationalbank and the FMA did not reveal any breaches by
Meinl Bank. The only administrative penalty issued by the FMA against the bank so far, owing to
misleading advertisements, was repealed by the Independent Administrative Tribunal.”
This factual statement is false. The OeNB and FMA investigations into Meinl Bank came up with
breaches, which is why the FMA issued several administrative penalties against members of the
Meinl Bank Management Board. Furthermore, extensive statements of the facts were submitted to
the state prosecutor’s office.
Furthermore, Meinl Bank makes the following incorrect factual statements in an advertising
campaign entitled “The Truth. Part 1”, which were placed in several Austrian dailies:
“According to the Austrian Stock Exchange Act, MEL was not obliged to provide information about
investments in its own certificates. This can be found in every prospectus audited by the FMA.”
The prospectuses only contain a note that the provisions of Article 91 BörseG (reaching,
exceeding or falling below the reporting threshold and/or related information and
publication obligations) do not apply as MEL is headquartered on Jersey. However, this
information does not mean in any way that MEL is not obliged to provide information about
“investments in its own certificates”.
“Like every other Austrian bank, Meinl Bank is obliged to inform the FMA about each individual
purchase of securities by customers. These reports have been properly made on a daily basis.”
It is correct that institutions subject to reporting obligations are obliged by law to report
every securities transaction to the FMA. Only these reports must be made in an
anonymous form as to the customer behind the transaction. The identity of the customer
must only be subsequently disclosed in the event of investigations. Such reports cannot in
any way be interpreted as constituting official consent or any other form of approval. In
2007, the FMA received a total of 19.7 million such reports on transactions. These reports
serve, legally and practically, to investigate possible irregularities after the fact. No
agreement regarding the transaction on the part of the Authority can be derived from an
anonymised report made.
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson)
++43/(0)1/24959 – 5106
++43/(0676)/88249516