Funds and asset managers
Investor protection and safeguarding of confidence in the Liechtenstein financial system and the fund centre enjoy the highest level of attention in regard to the taking-up, pursuit, and supervision of the activities of undertakings for collective investment in transferable securities and investment undertakings for other values or real estate as well as their management companies. The same is true of the commercial provision and mediation of asset management by asset management companies in Liechtenstein.
This client protection is safeguarded by supervising the funds, their management companies, and any delegatees as well as asset management companies and their employees. The focus of supervision is on whether the licensing conditions are met and whether the relevant laws and associated ordinances are complied with; in particular, this concerns the following legal enactments:
- Investment Undertakings Act (IUA)
- Investment Undertakings Ordinance (IUO)
- Law on Certain Undertakings for Collective Investment in Transferable Securities (UCITS Act)
- Ordinance on Certain Undertakings for Collective Investment in Transferable Securities (UCITS Ordinance)
- Asset Management Act (AMA)
- Asset Management Ordinance (AMO)
- Securities Prospectus Act (SPA)
- Disclosure Act
Client protection is ensured by compliance with the organizational requirements on financial intermediaries and by the disclosure and reporting obligations vis-à-vis the FMA.
In this regard, the FMA attaches special importance to the capital adequacy, risk management, and corporate governance of the managers with strict rules governing the delegation of responsibilities. One lesson learned from the financial crisis is to prevent management organizations with insufficient organization and monitoring from causing losses to investors. In its supervision work, the FMA works closely together with the auditors of the companies and funds in question. Close cooperation is also maintained with other supervisory authorities in the case of cross-border marketing of products.
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.