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European Union and US Dollar Requirements for Investment Firms

In a bid to boost investor confidence and protect consumer interests, the Financial Market Authority (FMA) has set new minimum capital requirements for investment firms operating in Liechtenstein. The authority has stipulated that all investment firms must have a minimum initial capital of 730,000 Swiss francs or its equivalent in euros or US dollars.

Why This Move?

According to the FMA, this move aims to ensure that investment firms have sufficient funds to cover potential losses and maintain business operations during times of economic uncertainty. The authority also emphasized the importance of transparency and disclosure, requiring firms to demonstrate how their own funds will not fall below the minimum capital requirement after taking up business.

Banking Relationships: General Terms and Conditions

Liechtenstein banks are required to adhere to strict guidelines when dealing with customers and third-party relationships. The General Terms and Conditions (GTC) of these banks play a crucial role in establishing the terms of their interactions with clients.

Validity Criteria for GTC

According to the Liechtenstein Civil Code, GTC must meet certain criteria to be considered valid and applicable. These include:

• Unusual provisions that do not become part of the contract if they are detrimental to customers
• Provisions that would not have been expected due to the circumstances

Cross-Border Banking Activities

Liechtenstein banks seeking to operate in the country must obtain a licence from the FMA. However, under the freedom to provide services:

• Banks with a seat in an EEA country may take up banking activities in Liechtenstein provided they have notified the FMA prior to their first-time activity
• Banks from non-EEA countries can only provide banking services in Liechtenstein through a branch, subject to a licence issued by the FMA

Reverse Solicitation

Banks from third countries may not provide any banking services in Liechtenstein unless on a “reverse solicitation” basis. However, the criteria for such “reverse solicitation” are not entirely clear.

Conciliation Board

In an effort to resolve disputes between customers and banks, the Liechtenstein legislator has introduced an extrajudicial conciliation board. This board acts as a mediator to resolve complaints submitted by customers and encourages discussions between disputing parties to reach a mutually acceptable solution.

Key Points

• The conciliation board is not a court of law
• It does not have authority to make judicial rulings
• It provides a crucial platform for resolving disputes in an efficient and cost-effective manner