Legal Sources / Investor Protection

Because Liechtenstein is an EEA member state, the harmonisation and consequent complete revision of the European investment fund regime by means of what are known as the UCITS Directives (“Undertakings for collective investment in transferable securities”; Directive 2009/65/EC and Directive 2014/91/EU) and the AIFM Directive (“Alternative Investment Fund Managers”; Directive 2011/61/EU) have also necessitated far-reaching changes to Liechtenstein’s own fund legislation over the last ten years.

For this reason there now exist in parallel three laws (and associated ordinances) under which investment funds may be established in Liechtenstein. These are the – UCITS Act (UCITSA), which is based on the aforementioned European UCITS Directives – AIFM Act (AIFMA), which is based on the aforementioned European AIFM Directive – IU Act (IUA), which is a purely national piece of legislation and imposes certain restrictions, in particular with regard to the investor base.

If you would like further information, options and definitions, we would be delighted to hear from you.

INVESTOR PROTECTION

The Liechtenstein laws and associated ordinances are all ultimately based on EU rules and therefore comply with the regulatory requirements of the European Economic Area (EEA) and the European Union (EU).

In conformity with those laws and associated ordinances the Liechtenstein FMA has issued various rul
es in the form of its Code of Conduct for the Liechtenstein Fund Centre. The Code of Conduct is intended to enhance investor protection and to foster and strengthen trust in the Liechtenstein fund centre and Liechtenstein’s finance sector (market integrity) both at home and abroad. All fund management companies and their contractual partners (e.g. depositaries, asset managers) that are subject to regulation by the FMA undertake to comply with this Code of Conduct.

LEGAL SOURCES

Principal legal basis in Liechtenstein
All laws and ordinances (implementing regulations) of the Liechtenstein jurisdiction are available in German in their latest versions at www.gesetze.li Selected consolidated laws in the english language can be found at www.regierung.li/law

The following are listed by way of example only:

  • Investment Undertakings Act (IUA)
  • Investment Undertakings Ordinance (IUO)
  • Law on Undertakings for Collective Investment in Transferable Securities (UCITSA)
  • Ordinance on Undertakings for Collective Investment in Transferable Securities (UCITSO)
  • Securities Prospectus Act (SPA)
  • Financial Markets Supervision Act
  • FMA Fee Ordinance
  • Code of Personal and Company Law (CPCL)
  • Ordinance on the Code of Personal and Company Law
  • Asset Management Act (AMA)
  • Asset Management Ordinance (AMO)
  • Due Diligence Act (DDA)
  • Due Diligence Ordinance (DDA)

Guidelines and notices of the Liechtenstein FMA

Principal basis in European law