Financial Market Authority (Liechtenstein)
Encyclopedia
The Financial Market Authority is the primary financial regulatory agency of the Principality of Liechtenstein
. It is an independent, integrated financial market supervisory authority operating under public law and covers all financial markets in Liechtenstein.
, it accounts for over 30% of GDP , the Government and Parliament of Liechtenstein committed themselves to a strong and independent financial regulator.
which threatened Liechtenstein's financial sector. The FMA had significant involvement in the investigation of the incident as well as working with the government to minimise the damage caused to the whole financial sector.
In June 2009 the Liechtenstein parliament discussed and criticized the increased financial expenditures for financial market supervision. The FMA responded saying "...that it took this discussion seriously and drew attention to the demands on supervisory authorities of internationally oriented financial centers have increased, irrespective of the size of a financial center. It also noted that the Government and Parliament have expressly committed themselves to an independent and strong Financial Market Authority."
Its core principles are;
The FMA covers, the regulation of banks, insurance companies, pensions funds, investment companies and brokers.
Through Liechtenstein’s membership of the European Economic Area
(EEA) licenses issued by FMA allow companies to operate some services through all member countries of the EEA.
Liechtenstein
The Principality of Liechtenstein is a doubly landlocked alpine country in Central Europe, bordered by Switzerland to the west and south and by Austria to the east. Its area is just over , and it has an estimated population of 35,000. Its capital is Vaduz. The biggest town is Schaan...
. It is an independent, integrated financial market supervisory authority operating under public law and covers all financial markets in Liechtenstein.
History
The FMA was launched on 1 Jan 2005 as an independent, integrated financial market supervisory authority. As financial markets are an important part of Economy of LiechtensteinEconomy of Liechtenstein
Despite its small size and limited natural resources, Liechtenstein has developed into a prosperous, highly industrialized, free-enterprise economy with a vital financial service sector and living standards on a par with the urban areas of its large European neighbors.Low business taxes - the...
, it accounts for over 30% of GDP , the Government and Parliament of Liechtenstein committed themselves to a strong and independent financial regulator.
Significant Incidents
In 2008 a former data entry clerk at LGT Group, a trust regulated by the FMA, stole data from the bank and sold it to tax authorities in other countries, sparking the 2008 Liechtenstein tax affair2008 Liechtenstein tax affair
The 2008 Liechtenstein tax affair is a series of tax investigations in numerous countries whose governments suspect that some of their citizens may have evaded tax obligations by using banks and trusts in Liechtenstein; the affair broke open with the biggest complex of investigations ever initiated...
which threatened Liechtenstein's financial sector. The FMA had significant involvement in the investigation of the incident as well as working with the government to minimise the damage caused to the whole financial sector.
In June 2009 the Liechtenstein parliament discussed and criticized the increased financial expenditures for financial market supervision. The FMA responded saying "...that it took this discussion seriously and drew attention to the demands on supervisory authorities of internationally oriented financial centers have increased, irrespective of the size of a financial center. It also noted that the Government and Parliament have expressly committed themselves to an independent and strong Financial Market Authority."
Responsibilities and functions
The FMA is responsible for safeguarding the stability of the financial market, protection of clients, prevention of abuse, and the implementation of and compliance with recognized international standards.Its core principles are;
- Supervision - supervise consistently and fairly, granting licenses, fight abuses and punish violations.
- Regulation - regulate with stakeholders, meeting international standards taking into account the competitiveness of the Liechtenstein financial market.
- External relations - cultivate dialogue with other international agencies
- Enterprise - independent, internally organized according to private sector principles.
- Team - Value each other in our interactions.
The FMA covers, the regulation of banks, insurance companies, pensions funds, investment companies and brokers.
Through Liechtenstein’s membership of the European Economic Area
European Economic Area
The European Economic Area was established on 1 January 1994 following an agreement between the member states of the European Free Trade Association and the European Community, later the European Union . Specifically, it allows Iceland, Liechtenstein and Norway to participate in the EU's Internal...
(EEA) licenses issued by FMA allow companies to operate some services through all member countries of the EEA.
Structure
- The Board
- René H. Melliger, Chairman
- Dr. Jochen Hadermann, Vice Chairman
- Dr. Martin Batliner
- Dr. Hans Haumer
- Dr. Stefan Jaeger
- General Management
- Mario Gassner, CEO
- Christian Reich, Deputy