Liechtenstein Adopts Financial Market Law

by Ulrika Lomas, Tax-News.com, Brussels

16 July 2010

During a recent meeting, Liechtenstein’s government approved the consultation report pertaining to the amendment of the financial market regulatory law.

According to the government, the amendment to the law will enable Liechtenstein to adhere to internationally recognized standards in mutual assistance in the area of securities regulation. At the same time, the country’s Financial Market Authority (Finanzmarktaufsicht Liechtenstein – FMA) will be granted vital access to the international securities standards organizations.

Liechtenstein does not currently comply fully with the mutual assistance standards as laid out by the International Organization of Securities Commission (IOSCO) and by the Committee of European Securities Regulators (CESR). Liechtenstein’s mutual assistance procedure for providing information to clients about requesting assistance has been heavily criticized, as has the lack of opportunity for the FMA to provide mutual assistance in all CESR and IOSCO requested cases.

The government maintains that the amendment to the law will rectify these issues, ensuring that the principality complies fully with the CESR and IOSCO standards on mutual assistance, thereby enabling the FMA Liechtenstein to receive IOSCO member status and CESR observer status, while at the same time enabling the authority to become part of the new European financial supervisory structure.

According to Prime Minister Klaus Tschütscher, the proposed change to the law will ensure that Liechtenstein’s financial intermediaries in the area of securities will be able to take part in European and international financial markets in future, and will serve to maintain both the competitiveness and the reputation of Liechtenstein’s financial centre.

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