Financial Market Authority (Liechtenstein)

The Financial Market Authority (FMA ) Liechtenstein adopted on 1 January 2005 as an independent authority operating organization under the Act of 18 June 2004 on the Financial Market Authority ( Financial Market Supervision Act; FMA Act ) on.

Tasks

The tasks of the FMA are divided into five main areas:

  • Banking & Securities Exchange Commission ( in collaboration with the Swiss National Bank);
  • Insurance & Pension Funds Supervision;
  • Supervision of other financial intermediaries;
  • ( Sub-) supervision of the postal system
  • ( Sub-) supervision of trustees, auditors, auditing companies, patent attorneys.

Organization

The FMA is a public institution with legal personality. The FMA is not independent of the government and the government accountable.

Board

The FMA Liechtenstein is governed by a Board. Chairman of the Supervisory Board since early 2012, Urs Philipp Roth- Cuony. He replaced Michael Lauber, who was president from early 2010 to late 2011.

The Supervisory Board consists of three to five members (Article 7 FMA Act ).

Are in the Supervisory Board, to the extent possible, expertise represented in the following areas:

  • Banking, including asset management;
  • Trusteeship, legal or auditing;

The members of the Supervisory Board must also have a criminal record, high level of technical knowledge and sufficient practical experience. The President, the representative and at least one other member of the Supervisory Board may not exercise any functions in a supervised person or entity. Other members of the Supervisory Board of the FMA may also require regulated entities to belong (Article 7, paragraph 5 FMA Act ).

The Supervisory Board are the following irrevocable and can not be delegated tasks ( Art 12 FMA Act ):

  • The overall management of financial market supervision;
  • The adoption and amendment of the Articles of Association;
  • The establishment of the organization;
  • Financial planning and financial control, where this is necessary for the management of the company;
  • The selection, monitoring and removal of members of the Executive Board;
  • The implementation of the ownership strategy adopted by the Government;
  • The preparation of the annual budget, the annual report and the financial statements;
  • Advising the government in terms of financial market strategic issues;
  • The adoption of guidelines and recommendations within the meaning of Article 25 FMA Act

The term of office of Supervisory Board members is five years. A single re -elected. When President after two terms of office in justified cases, a re-election for an extraordinary term of two years allowed ( type 8 FMA Act ).

Management

The members of the Board are elected by the Supervisory Board after a public tender ( Article 14, paragraph 1, the FMA Act ).

Like the members of the Supervisory Board, the incompatibility rules within the meaning of Article 7, paragraph 5 shall apply mutatis mutandis to the FMA Act ( see above). The members of the Executive must has no criminal record, high level of technical knowledge and sufficient practical experience.

The Executive Board is responsible for the operational management of the FMA. Composition, functions and powers of the Board are set out in the statutes and in the organizational regulations of the FMA

Auditors

The Government of the Principality of Liechtenstein selects a recognized auditing company under the Act on Auditors and auditing companies as auditors. The Government may entrust the function of statutory auditors of public audit.

FMA Complaints Commission

The FMA Complaints Commission is established under Article 78, paragraph 3 state constitution and consists of three members and two alternate members, who are elected by the Liechtenstein Parliament for a term of five years. The Diet also determines the President and the Vice President of the FMA Complaints Commission. There are incompatibility rules for the activity in certain positions of the government, the parliament, the FMA itself, with regulated entities, etc.

The FMA Complaints Commission is responsible for assessing symptom- efficient decisions and orders of the FMA. These can be appealed within 14 days of delivery to the FMA Complaints Commission. The decisions and orders of the FMA Complaints Commission may be charged again within 14 days of service the complaint to the Administrative Court ( Liechtenstein ).

Legal framework

Legal basis of the Liechtenstein Financial Market Authority is mentioned:

  • FMA Act
  • FMA Statutes
  • FMA Fee Regulation

The legal basis for the supervisory activities of the FMA a variety of Liechtenstein's laws, including, inter alia, serve

  • Law on Banks (Banking Act )
  • Law on Asset Management Act (AMA )
  • Law on Investment Undertakings (IUA )
  • Act on the supervision of insurance companies ( Insurance Supervision Act, ISA)
  • Law on Professional Due Diligence in Financial Transactions (Due Diligence Act, SPG)
  • Liechtenstein Persons and Companies Act (PGR )
  • Act on the drawing up, scrutiny and distribution of the information to be published in a public offering of securities prospectus ( Prospectus Act )

The adopted under the Public - company - control law by the Government according to Article 16 ÖUSG owner or participation strategies is not binding on the regulated entities and bind only the bodies of the FMA itself It is in this owner's or investment strategy is a good governance - control mechanism.

Control

The overall supervision of the FMA Liechtenstein incumbent on the Government of the Principality of Liechtenstein (Art 78 para 4 State Constitution, Article 1, Section 3 FMA Act ). The control functions of government are regulated since January 1, 2010 also in public companies - control law.

The supervision of the government covers all areas of financial market supervision to control and monitor the FMA, including the human, organizational and regulatory regions, as the Liechtenstein Financial Market Authority has received to entrust, directly derived from the government competencies from the state constitution activities and this, in its own name However, for the government or the country of Liechtenstein, exercises (Art 1 para 3 lit. ÖUSG a ).

In this context, the Liechtenstein Financial Market Authority is entitled to the interests of the country, so far as their purpose competences were transferred to perceive (eg, in international fora, in the context of assistance, etc.), with the last control and authority is in this respect with the government. The Liechtenstein Financial Market Authority is also required to report regularly in this context the government.

The government is under strict regulation for the transfer of powers from the Liechtenstein National Constitution out not entitled to transfer certain areas of financial market supervision without monitoring or to refrain from an oversight effectively.

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