Liechtenstein Financial Centre

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Facts & Figures

• 15 banks (8 LI, 4 AT, 3 CH)

• approx. CHF 160 billion assets under management (AuM)

• Core business: Private Banking

• Long tradition in private banking & wealth management

• Investment funds: over CHF 26 billion

• Trustees: approx. 400

• The Financial Centre of Liechtenstein is characterised by its growth, not by its mere size

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• The financial sector is one of the most regulated industries on the globe

• Regulations can be driven by different interests (consumer protection, fighting against abuse of the financial system, enhancing competitivenes)

• Framework of regulation is a crucial part in assessing the attractivity of a location

Regulatory framework and location advantages Regulation

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• On-/offshore is mainly used as a political term

• Changing circumstances (today offshore, tomorrow onshore)

• Offshore not the same as unregulated

• Globalised markets are divided up in regions which try to integrate on-and offshore ideas (China, Caribbean, and Europe?)

Financial CentreGlobalised financial markets/on- and offshore

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Financial Centre Business Advantages (1)

• High Stability of political, social, legal and economic system

• Liberal economic policies and company law• Banking legislation with banking secrecy laws• Low taxation• Well developed financial market• Solid public spending

– Well developed infrastructure– Low level of bureaucracy / smallness, which implicates flexibility

and short lines of decision– Large capital reserves of the state (AAA country rating by

Moody‘s and Standard & Poor‘s)

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Financial Centre Business Advantages (2)

• Free Trade

– Economic, customs and currency union with Switzerland– Part of the European Economic Area (EEA)– Member of the European Free Trade Association (EFTA)– World Trade Organisation (WTO)

• International Cooperation and Acceptance of Independence

– Member of the United Nations (UN)– Member of the European Council

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Strong Ties to Switzerland

• Currency treaty– Swiss franc as national currency (currency area)– Swiss national bank (SNB) as lender of last ressort– Reporting to SNB

• Customs treaty– VAT regime– Stamp duty

• 6 major banks are members of Swiss bankers association (SBA)

• 2 major banks have status as security dealer at SWX

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Strategies of the banks

• High professionalism and customer orientation

• High qualtity of services

• From offshore focus to onshore strategies(Germany, Austria, Switzerland, Asia)

• Operational in more than 15 countries with more than 50 subsidiaries

• Lobbying within the European Banking Federation (EBF) and in other organisations at home and abroad