Asset management companies

Responsibilities of the supervisory authority pursuant to the Asset Management Act (AMA)

The FMA monitors implementation of the Asset Management Act (VVG) and the associated Ordinance as well as compliance with the regulations and guidelines based thereon. The aim is to ensure that clients are protected and that confidence in the Liechtenstein financial market is safeguarded. The FMA may exercise the powers conferred upon it directly, in cooperation with other supervisory bodies, or on application to the Office of the Public Prosecutor.

With regard to audits, asset management companies are in principle supervised according to the indirect method. For this purpose, the FMA relies on the audit reports of the external audit firms, which in a sense act as an extended arm of the FMA. The FMA may choose, at its discretion, to perform the audit itself or to accompany audits. This is done at regular intervals as relevant issues or incidents arise.

The FMA may grant, revoke, and withdraw licenses or order the compulsory dissolution of companies that operate as asset management companies without a licence. Other responsibilities include penalising administrative contraventions.

If the FMA learns of violations of the VVG or of other abuses, it uses the means at its disposal to bring about a lawful state of affairs or to remedy the abuses.

If the FMA suspects that an activity subject to the VVG is being conducted without a licence, the FMA is responsible for demanding information and materials from the persons concerned. The FMA may inform the public through announcement in the official publication organs that a named undertaking is performing services under Article 3(1) VVG without being entitled to do so.

Liechtenstein's status as a member of the European Economic Area (EEA) and active implementation of Directive 2004/39/EC on markets in financial instruments (MiFID) and Directive 2014/65/EU on markets in financial instruments (MiFID II) as well as other European rules give Liechtenstein asset management companies access to the entire EEA through the free movement of services or the establishment of branches.