As of the end of 2009, the Liechtenstein financial center is home to 16 banks, 102 asset management companies, 411 investment undertakings (funds), 41 insurers, 70 insurance intermediaries, 33 pension schemes, 5 pension funds, and 1,448 other financial intermediaries.

Overall, an enhanced diversification of products, especially investment funds and insurance solutions, and a significant expansion of the number of market participants have been observed since the beginning of the 1990’s. Due to these dynamics of the financial services sector, State authorities also expanded in recent years and the justice system and police strengthened.

Banks

The banking institutes in Liechtenstein distinguish themselves through a solid equity capital cover and thereby provide the best conditions from the perspective of depositor protection. Liechtenstein also has a deposit guarantee and investor protection system that all banks have joined. By far the most important business field of the Liechtenstein banks is private banking with portfolio administration and related services. The close cooperation of banks with professional asset managers is typical of the Liechtenstein banking center.

Investment undertakings

The passage of the Investment Undertaking Act in 1996 created the basis for the establishment of the Liechtenstein fund center. Investment undertakings (funds) are assets raised from the public following public solicitation for the purpose of collective capital investment and managed by a management company for the joint account of the unit-holders, unless expressly provided otherwise, in accordance with the principle of risk spreading. Investment undertakings may be established on a contractual basis (investment funds) or as a company (investment company).

Insurance Center

The passage of the Insurance Supervision Act in 1996 led to the expansion of the Liechtenstein insurance location. The main business of Liechtenstein insurance undertakings consists in unit-linked life insurance. Non-life insurers are niche insurers specializing in specific insurance products (e.g. art insurance). Reinsurance undertakings are in many cases self-insurance undertakings (captives), which only assume risks of their group as reinsurance.

Pension Schemes

Pension schemes are the implementing organs of occupational pension funds. Occupational pension funds, as the 2nd pillar in the three-pillar concept along with State Old Age, Survivors’ and Disability Insurance (AHV/IV, 1st pillar), are intended to allow insured persons to continue their accustomed lifestyle after they retire. They are organized at the level of businesses.

Liberal Professions

With the creation of the Financial Market Authority a joint contact-point for all areas of the financial market supervision was established. The scope of activities of professional trustees includes the formation of legal persons, membership on boards of directors, and accounting and inspections. Lawyers, legal agents, patent attorneys, and patent attorney companies work especially in the areas of professional legal counseling and representation of parties as well as counseling and representation with respect to intellectual property.

The Liechtensteinische Landesbank, established over 140 years
ago, is the bank with the richest tradition in Liechtenstein