Client protection

In addition to safeguarding the stability of the Liechtenstein financial market, preventing abuses, and implementing and complying with recognized international standards, the protection of clients is a key responsibility of the FMA Liechtenstein. In this way, the FMA makes an important contribution to ensuring the confidence of investors, insured persons, and creditors in the Liechtenstein financial sector.

As an integrated financial market supervisory authority, the FMA supervises banks, insurance undertakings, asset management companies, fund management companies, and other financial market participants. The FMA is also responsible for event-driven or ad hoc supervision of TT service providers and for approval of securities prospectuses. The demands on client protection and the level of protection ensured by supervision vary depending on the sector. The goal of client protection is to ensure that the supervised financial intermediaries and TT service providers meet their obligations toward investors, clients, and creditors.

The FMA exercises its protection of clients through its supervisory work, for instance by reviewing the legal requirements on the liquidity and capital of banks and the appropriateness of risk distribution, and by monitoring permanent compliance with licensing conditions.

To combat abuse, the FMA ensures that activities subject to licensing or registration are not carried out without a licence or registration and that the prospectus requirement is met for public offerings of securities. Violations are reported by the FMA to the Office of the Public Prosecutor. The licensed financial intermediaries and registered TT service providers are made public in a register. By publishing warnings, the FMA has another instrument at its disposal to ensure client protection.

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