The Liechtenstein Conciliation Board supports clients in disputes or disagreements with their bank or other financial service providers. If a conflict between a client and the bank cannot be resolved, clients can turn directly to the Conciliation Board. The Conciliation Board is designed as an independent mediation body to intervene in the event of a specific client complaint.
The conciliator serves as a competent intermediary with experience in the financial services sector. The goal for both sides is to avoid lengthy and costly legal proceedings. Rare cases may not be suitable for conciliation, so that the client must pursue the matter directly before the ordinary courts.
The Conciliation Board deals with specific complaints brought by clients against a bank domiciled in Liechtenstein. The goal of these proceedings is to reach an out-of-court settlement between the client and the bank. The conciliator is obliged to treat client enquiries confidentially. The conciliator consults with the bank only with the client’s consent.
On the basis of an authorisation to that effect from the client, the conciliator may request from the banking institution all information necessary for the assessment of the complaint, and it may inspect the files. Direct dialogue between the parties is also encouraged. Instead of a judgment, the conciliator offers the parties to the dispute a negotiated solution. This solution is not binding, and the parties are free to decide whether to follow the proposal of the Conciliation Board or to take other steps such as legal action. Negotiated solutions are usually accepted thanks to the conciliator’s professional competence and experience. This helps to repair disrupted relationships of trust.
Requirements for the intervention of the Conciliation Board:
There must be a dispute between a client and a bank (financial institution).
The bank (financial institution) must be established in Liechtenstein.
The client must credibly demonstrate to the Conciliation Body that an attempt was made to reach an agreement with the bank (financial institution) before the application for conciliation was submitted.
The Conciliation Board may not intervene in the following cases:
- In disputes concerning the general business and fee policy of a financial institution. For example, if the bank does not grant the desired loan or does not grant it in the desired amount, or if the bank’s fees seem too high.
- To clarify abstract legal and economic issues. It is not the responsibility of the Conciliation Board to provide legal information or expert opinions on disputes.
- If court proceedings are already pending in the matter.
- If a judgment has already been issued in the matter.
All information on the proceedings before the Conciliation Board can be found on its website.
Rules of Procedure
Government and FMA