Banks and investment firms
Responsibilities of the supervisory authority
The Banking Division is responsible for supervising banks and investment firms in Liechtenstein and it monitors compliance with the applicable legal norms. As part of the licensing procedure, the submitted documents are reviewed for content and completeness. Ongoing monitoring is ensured on the basis of the reports that banks and investment firms are legally required to submit, as well as through direct and periodic contact with the boards of directors and management of the institutions.
With regard to auditing and review of compliance by banks and investment firms with their legal requirements, the Banking Supervision Section relies primarily on the audit reports prepared by external auditors, which serve as an extension of the FMA, so to speak. The FMA may also carry out its own audits or accompany external audits. Where violations of legal norms or grievances come to the attention of the Banking Supervision Section, it seizes the necessary measures to restore a lawful state of affairs.
In the fulfillment of its responsibilities, the FMA may for instance also demand that persons and entities subject to the Banking Act and FMA supervision as well as their auditors provide all information and documents necessary to enforce the law, and it may order or carry out extraordinary audits. It may issue decisions as well as decrees to act, abstain from an act, or declaratory decrees, and it may publish final decisions and decrees if the persons or entities involved fail to comply with them.