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Banking Regulation in Liechtenstein
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Liechtenstein has established a robust framework for banking regulation, ensuring that banks operate within strict guidelines. This article provides an overview of key aspects of banking regulation in Liechtenstein, including power of attorney, general terms and conditions, cross-border banking activities, and conciliation boards.
Power of Attorney
In Liechtenstein, the agent’s actions under a power of attorney are bound by certain limitations. If the agent exceeds these limitations, they will be held liable for any resulting consequences.
Waiver of Fees and Commissions
When May Banks Assume Principal Has Waived Rights?
Banks, investment firms, or asset management companies may assume that the principal has waived their right to receive fees, commissions, or grants if the following conditions are met:
- The agent informs the bank in writing about the waiver.
- The waiver is made explicitly and voluntarily by the principal.
- The waiver does not contradict any other agreements between the parties.
General Terms and Conditions
To be valid and applicable, general terms and conditions must meet certain criteria. These include:
- Not being detrimental to customers
- Clearly stating any unusual provisions
Ensuring Validity and Applicability
General terms and conditions are crucial for establishing a fair relationship between banks and their customers. To ensure validity and applicability, these terms and conditions should be reviewed carefully.
Cross-border Banking Activities
Banks operating in Liechtenstein can take up business based on a license issued by the FMA or through passporting (if they have their seat in an EEA country). Banks from third countries must establish a branch in Liechtenstein to provide banking services.
Requirements for Third-Country Banks
To operate in Liechtenstein, banks from third countries must meet specific requirements, including:
- Establishing a branch in Liechtenstein
- Complying with local regulations and laws
Conciliation Board
The extrajudicial conciliation board is introduced to settle disputes between customers and banks about services provided by the bank. The conciliation board acts as a mediator but neither parties are bound to accept any generated solution.
Role of the Conciliation Board
The conciliation board plays a crucial role in resolving disputes between banks and their customers. Its primary function is to mediate and provide a fair solution that satisfies both parties.