Good regulation is of the utmost importance for Liechtenstein’s globally oriented financial industry. It ensures a high level of consumer and investor protection and at the same time promotes the stability of the banking and financial centre. Both objectives increase confidence in the banks. However, the standards have practical relevance only if they can be tailored to the different business models and scales. A “one size fits all” approach of global regulatory efforts would be misguided. The costs must also be affordable for smaller institutions with a different risk profile. Only then can they continue to be competitive.
Liechtenstein has modern and EU-compatible financial market regulation
Liechtenstein is a member of the European Economic Area (EEA) and thus has full freedom to provide services in all countries of the European Union (EU) and the EEA (which also includes Norway and Iceland). This means that the same legal framework applies to banks in Liechtenstein as in the EU countries. Liechtenstein promotes the competitiveness and attractiveness of the financial centre by implementing EU directives quickly and in line with market requirements.
The incorporation of an EU legal act into the EEA Agreement takes place in a structured procedure.