Law on the Supervision of Investment Firms in consultation – Liechtenstein
VADUZ – With the decision of November 29, the government passed the consultation report on the amendment to the Asset Management Act. The main issue here is a new supervisory regime.
In 2019, according to a notification from the Ministry of Presidential Affairs and Finance, the adoption of the IFD Directive and the IFR Regulation created an independent European legal framework for the supervision of MiFID II investment firms, requirements also for asset management companies. So far, they have both been subject to EEA supervisory regimes like banks.
While the IFD regulates the initial capital, the supervision of investment firms and suitable supervisory powers and instruments as well as publication obligations, the IFR contains supervisory requirements in relation to equity, liquidity and the associated reporting and disclosure obligations. In particular, the new supervisory regime should better reflect the risks that investment firms emanate from and to which they are exposed, and take much greater account of the principle of proportionality.
“The regulations of the IFD that are relevant for asset management companies are implemented in the Asset Management Act (VVG) and its implementing provisions (VVO), while the provisions of the IFR are generally directly applicable when they are incorporated into the EEA Agreement,” the ministry continues.
The consultation report can here be obtained. The consultation period ends on February 28, 2023.