Ongoing supervision
The FMA ensures compliance with the requirements under special legislation for alternative investment funds (AIFs) and their managers. For this purpose, it conducts audits and on-site inspections, and it collects and analyses notifications, reports, and data. The FMA also maintains communication with the auditor of the AIF or AIFM, who must report any breaches of legal or regulatory provisions, as well as other significant facts and information, to the FMA. The FMA carries out its sovereign supervisory duties and takes measures to prevent, remedy, or punish any irregularities.
Supervision of AIFMs and AIFs under the AIFM Act
The Alternative Investment Fund Managers Act (AIFM Act, AIFMG) applies to EEA AIFMs managing one or more AIFs, irrespective of whether such AIFs are EEA or non-EEA AIFs; to non-EEA AIFMs managing one or more EEA AIFs; and to non-EEA AIFMs marketing one or more AIFs in the EEA, irrespective of whether those AIFs are EEA or non-EEA AIFs (Article 2(1) AIFMG).
The FMA monitors execution of the AIFMG, the associated ordinance (AIFMV), and the FMA Guidelines, and it takes the necessary measures either directly, in collaboration with other supervisory authorities, or by reporting the matter to the Office of the Public Prosecutor. In the case of cross-border activities of management companies, the FMA works in close cooperation with the competent authorities of the EEA Member States concerned. This cooperation includes both the exchange of information and the conduct of on-site inspections.
Laws and ordinances
The AIFMG governs the taking up, pursuit and oversight of the business of AIFs and their AIFMs. 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 AIFMG).
Reporting
Periodic reporting of the AIFMs:
AIFMs must draw up a report every six months on the basis of the form provided by the FMA and submit it to the FMA within two months from 31 December and 30 June (Article 157(6) AIFMG).
The audit reports on the supervisory audit of the AIFMs must be submitted by the auditors no later than six months from the end of the financial year in accordance with the Audit Guideline (Article 110(3) AIFMG).
AIFMs are also required to report information on client complaints to the FMA every six months, within two months of 31 December and 30 June, in accordance with FMA Communication 2015/2.
In addition, AIFMs are subject to at least annual reporting obligations pursuant to Article 107 AIFMG. Further details on these reporting obligations are set out in the FMA instruction on reporting obligations for AIFs and AIFMs.
Periodic reporting on AIFs:
The AIFM must publish an annual report audited by an auditor for each AIF no later than four months after the end of the reporting period (Article 104(1) and (5) AIFMG) and submit it to the FMA.
The audit report on the supervisory audit of the AIF must be submitted by the auditor no later than six months from the end of the reporting period (Article 110(3) AIFMG).
AIFMs must also draw up a report for each AIF every six months on the basis of the form provided by the FMA and submit it to the FMA within two months from 31 December and 30 June (Article 105(2) AIFMV).
In addition, AIFs are subject to at least annual reporting obligations pursuant to Article 107 AIFMG. Further details on the reporting obligation are set out in the FMA instruction on reporting obligations for AIFs and AIFMs.
Decrees/penalties
To enforce the obligations set out by law and ordinance, the FMA Liechtenstein is legally required and authorised to issue appealable decisions and impose penalties, up to withdrawal of the licence.
- Supervisory measures (Articles 157 and 158 AIFMG)
- Criminal provisions (Article 176 AIFMG)