Information from the FMA regarding investments in physical precious metals

05.07.24 • Enforcement

The Financial Market Authority (FMA) Liechtenstein has noted an increase in inquiries about companies domiciled in Liechtenstein that have developed various models for the acquisition and safekeeping of physical gold and other precious metals. They sell these precious metals via the Internet or through distribution structures. The FMA notes that the sale, together with the subsequent safekeeping of the physical precious metals and the corresponding reporting of the holdings to clients, does not in principle constitute an activity requiring a special license under the law and therefore does not require FMA authorization.

The providers are therefore not subject to prudential supervision by the FMA in this respect, which is why the purchase contracts and precious metal holdings are not reviewed by the FMA. The FMA draws attention to the fact that in the event of any irregularities on the part of the seller or the custodian, the investor must enforce the return of the physical precious metal, if necessary through the courts. If the counterparties are not creditworthy, total losses cannot be ruled out.

The FMA also recommends that customers carefully check the ancillary costs associated with such offers (acquisition and administration costs)

The FMA's supervision of compliance with due diligence law remains unaffected by this. Consequently, providers must comply with the provisions of the Act on Combating Money Laundering, Organized Crime and Terrorist Financing if they are so-called reporters under the Due Diligence Act. Further information on the reporting entities under the Due Diligence Act.

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Information from the FMA regarding investments in physical precious metals

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