FMA reports financial sector on good course
The Liechtenstein financial center has maintained its growth path in the second year of the pandemic.
The Financial Market Authority (FMA) reported on this in its 2021 annual report. In dealing with the war in Ukraine, the FMA attested that market players had acted appropriately.
In the context of Russia’s war on Ukraine, the Financial Market Authority has assessed whether the associated risks can be adequately managed through the measures taken by financial service providers, as the FMA explained at its annual press conference on 13 April. According to a press release, it came to the conclusion “that financial intermediaries responded swiftly and correctly to the crisis”. Individual financial service providers “with stronger Russia ties” are being “closely” supported by the FMA.
Continuous growth
In the second year of the pandemic, the Liechtenstein financial center has reportedly continued on a course of growth. Assets under management of Liechtenstein’s banks and foreign group companies increased by 16.1 percent over the course of the year to a new record level of 424.4 billion Swiss francs. The banking sector improved profit from ordinary business activity by 23.6 percent year on year to 671.7 million francs.
Sustainability and cybersecurity
According to the FMA, “key strategic issues for the financial center” include sustainability and cybersecurity. In regard to sustainability, the FMA intends to focus on the misrepresentation of environmental behavior, so-called greenwashing. In 2021, the FMA developed a directive aimed at preventing cyber risks, which provides clear guidance to financial market players for ensuring cyber security.
