Liechtenstein Financial Centre

Copyright LBA 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

Copyright LBA 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

Copyright LBA 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 Centre Globalised financial markets/on- and offshore

Copyright LBA 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)

Copyright LBA 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

Copyright LBA 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

Copyright LBA 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