Financial Crime World

Companies May Neither Accept nor Hold Assets of Third Parties

Introduction

A recent report has shed light on the significance of asset management companies in Liechtenstein’s financial sector. The report reveals that there are 102 licensed asset management companies, which have a total of 9,212 client relationships.

Asset Management in Liechtenstein

As of the end of 2020, the assets under management by these companies stood at CHF 53 billion. Of this amount, CHF 45.7 billion was managed on behalf of clients, while the remaining CHF 7.3 billion was used for other services such as investment advice.

Regulatory Requirements

Despite their importance, asset management companies in Liechtenstein are prohibited from accepting or holding assets belonging to third parties. This means that they can only manage assets owned by their clients and not those of others.

Professional Trustees

The report also highlights the role of professional trustees in Liechtenstein’s financial sector. As of the end of 2020, there were 147 licensed professional trustees who served as advisors to their clients in various areas of asset preservation and structuring.

Trust Companies

Additionally, there were 245 trust companies licensed in Liechtenstein, which are responsible for managing assets on behalf of clients. These companies employed a total of 633 people as of the end of 2020.

Financial Intermediaries

The report also provides an overview of other financial intermediaries regulated by the Financial Market Authority (FMA) in Liechtenstein, including banks, investment firms, payment institutions, and electronic money institutions, among others.

Conclusion

Overall, the report underscores the importance of asset management companies in Liechtenstein’s financial sector. It highlights the need for these companies to comply with strict regulations and guidelines to ensure the safety and security of client assets.

Key Findings:

  • 102 asset management companies are licensed in Liechtenstein.
  • These companies have a total of 9,212 client relationships.
  • The assets under management by these companies stood at CHF 53 billion as of the end of 2020.
  • Asset management companies in Liechtenstein are prohibited from accepting or holding assets belonging to third parties.
  • There were 147 professional trustees licensed in Liechtenstein as of the end of 2020.
  • There were 245 trust companies licensed in Liechtenstein, which employed a total of 633 people as of the end of 2020.