Safeguarding confidence in the Liechtenstein monetary, securities, and credit system as well as the protection of investors and creditors of banks ("client protection") is a central goal of the regulatory supervision of banks.
This client protection is carried out through supervision of the banks and their branches and representative office. The main question in supervision is whether the licensing conditions are met and whether the associated laws and ordinances are complied with. The applicable regulations include the following in particular:
Due Diligence Act (DDA)
Financial Market Authority Act (FMA Act)
Financial Conglomerates Act (FCA)
Payment Services Act (PSA)
The FMA ensures client protection by, inter alia, continuously verifying the liquidity and capital of banks, the appropriateness of risk distribution, and the professional and personal qualifications of persons serving on boards of directors and management. Solid corporate management is of the utmost important to the FMA. If the FMA gains knowledge of violations of a law or other grievances, the necessary measures are seized to ensure a proper state of affairs. Where appropriate, the FMA works closely together with the Office of the Public Prosecutor. The active involvement of the population is especially important: At all times, the FMA accepts reports of unlicensed companies or other grievances.
The Conciliation Board is responsible for resolving disputes between a client and a financial institution in regard to services provided. The task of the Conciliation Board is to mediate and thus to achieve agreement in an appropriate manner. The Conciliation Board is not subject to any instructions, is free from conflicts of interest, and carries out its mandate independently, impartially, and transparently.
The Financial Services Conciliation Board Ordinance (FSCBO) governs the organization, competences, and procedures of the Conciliation Board.