Ongoing supervision
The FMA maintains an ongoing exchange with the external auditor of a UCITS or management company who informs the FMA of any active or passive violation of legal or administrative provisions as well as any other material facts. The FMA performs its sovereign supervisory mandate and takes measures to penalise, eliminate, and prevent abuse and other defects.
Supervision of management companies and UCITS under the UCITSG
The UCITSG applies to UCITS and their management companies having their registered office in Liechtenstein, or which market units of a UCITS in Liechtenstein, or offer or market them publicly from Liechtenstein (Article 2(1) UCITSG).
The FMA monitors implementation of the Undertakings for Collective Investment in Transferable Securities Act (UCITSG), the associated Ordinance (UCITSV), and the FMA Guidelines and takes the necessary measures directly, in cooperation with other supervisory bodies, or by filing charges with the Office of the Public Prosecutor. In the case of cross-border activities of management companies, the FMA cooperates with the competent authorities of the EEA member states concerned. This includes both the exchange of information and on-the-spot inspections.
Laws and ordinances
The UCITSG governs the taking up, pursuit, and oversight of the business of UCITS and their management companies. Its purpose is to protect investors and safeguard confidence in Liechtenstein as an investment fund centre and the stability of the financial system (Article 1 UCITSG).
Reporting
Periodic reporting by the management companies:
Management companies must draw up a report every six months on the basis of the form provided by the FMA in accordance with FMA Communication 2015/1: Electronic transactions (e-Services) and submit it to the FMA within two months from the relevant cut-off date by way of the e-Service portal (Article 124(2) UCITSV). Under FMA Guideline 2015/3 of 17 December 2015, the external auditors must submit the audit reports on the management companies within six months after the end of the financial year.
Periodic reporting on UCITS:
The management company or self-managed investment company must prepare an annual report for each UCITS within four months from the end of the reporting period (Article 70(b) UCITSG) and a half-yearly report on the first six months of the financial year within two months from the end of the reporting period (Article 70(c) UCITSG) and submit them to the FMA. The external auditor must submit the audit report no later than six months after the end of the financial year.
Periodic reporting on the risk measurement and reporting procedures for the use of derivatives by UCITS:
Each year, the management companies must submit to the FMA in standardised form the reports required by FMA Guideline 2016/1 – Derivatives as of 31 December (Article 53 UCITSG in conjunction with Articles 43 to 48 UCITSV). The report must be submitted to the FMA within two months of the cut-off date.
Management Companies and UCITS are subject to on-going supervision by the FMA. The FMA enforces the law (UCITS Act) and the ordinance (UCITSO) as well as all directly applicable European regulations. Supervision of market participants and their products includes prudential as well as conduct of business provisions. The FMA applies a risk based supervisory approach with individual supervisory examination programs for each supervised entity.
Cyber-Risk
The FMA applies a risk based supervisory approach with individual supervisory examination programs for each supervised entitiy.