What exactly does “investor protection” mean?

Investor protection includes policies, regulations and laws designed to protect retail investors and their assets from abuse, poor advice, unfair practices and excessive risk.

The aim is to promote confidence in the financial markets and protect investors from losses that could result from unethical or negligent behaviour on the part of financial service providers.

Legislation such as MiFID II ensures high standards when it comes to advising clients and selling financial products.

With the revision of the EU Markets in Financial Instruments Directive (MiFID II), the European legislators expanded the harmonised regulatory framework for investment services in a number of key areas. MiFID II contains a comprehensive package of measures to enhance the protection of investors.

For further information: As a member of the European Economic Area (EEA), Liechtenstein is obliged to adopt EU legislation. Significant improvements have been made to investor protection with regard to how they are advised.