Liechtenstein Adopts New Fund Law

by Ulrika Lomas, Tax-News.com, Brussels

05 July 2011

Liechtenstein’s parliament has recently adopted the Principality's new fund law, designed to strengthen the country’s financial centre.

The new law implements the European directive relating to undertakings for collective investment in transferable securities (UCITS IV Directive) in the Liechtenstein financial centre. Implementation of the new fund law will serve to reinforce access to the European Single Market for Liechtenstein funds and their services, the administration says.

Commenting on parliament’s decision, Liechtenstein’s Prime Minister and Finance Minister Klaus Tschütscher stated that: “This creates an ideal framework for the fund centre as well as flexibility, dynamism, and reputation for the entire financial centre".

According to the administration, assets under the management of investment funds throughout Europe amounted to CHF8 trillion in 2010, approximately 14% more than in the previous year. It notes that the volume of the European UCITS market at the end of 2010 was in turn CHF5.9 trillion.

The Liechtenstein Investment Fund Association also welcomed the adoption of the Principality’s new fund law. Indeed, Chairman of the Executive Committee Matthias Voigt stated that: “Implementation of the UCITS IV Directive is a further milestone in the development of the Liechtenstein fund centre".

He noted that looking toward the future, but especially also in light of the upcoming implementation of the AIFM Directive next year, the framework conditions should have a sustainable positive effect for the financial centre in the international context.

Director of the Liechtenstein Bankers Association, Simon Tribelhorn remarked: "We welcome the fast implementation of the UCITS IV Directive. It is part of our Roadmap 2015. The implementation is not only a duty. It is also an important step towards a sustainable successful development of the funds centre Liechtenstein and its international competitiveness in long term”.

Liechtenstein’s new fund law is due to enter into force on August 1.

Recommended