Liechtenstein Financial Sector Remains Stable Amid Global Challenges

Effective Regulation Maintains Stability

Despite a multitude of international challenges, the financial sector in Liechtenstein has emerged unscathed thanks to the effective enforcement of policies by the country’s regulatory authority, the Financial Market Authority (FMA). According to the FMA’s Economic Report 2023, the reduction in market abuse and protection of customers is a direct result of the authority’s efforts.

Key Statistics

• 88 administrative proceedings or criminal investigations launched by the FMA
• 192 ongoing cases or preliminary investigations concluded
• Fines totaling CHF 1,489,500 imposed for violations including:
  • Banking law
  • Market manipulation
  • Insider trading
  • Dealings with clone companies
• One notable case resulted in a fine of CHF 500,000

Criminal Complaints Lodged

The FMA lodged nine criminal complaints with the relevant public prosecutor’s office, citing suspicion of:

• Market abuse
• Accepting deposits without proper authorization
• Insider trading
• Other financial crimes

Regulatory Developments

As part of its remit, the FMA is responsible for developing new regulations to govern the financial sector. The authority has drafted fresh guidelines on:

• Securities trading
• Digitalization
• Cryptocurrency trading

A revised version of the Financial Market Act is slated for completion by January 1, 2025.

Conclusion

The FMA’s efforts have been instrumental in maintaining Liechtenstein’s financial stability, underscoring the importance of robust regulatory oversight in an increasingly complex global market. The authority’s effective enforcement of policies has resulted in a significant reduction in market abuse and protection of customers, making it clear that strong regulation is key to maintaining stability in the financial sector.