2020 was an extremely successful year for the Liechtenstein fund industry. New business in particular, i.e. fund foundations, grew particularly strongly. The old record of 2019 was exceeded by 20 percent and new business has doubled since 2016. The first half of 2021 also brought very encouraging figures. There was another increase of around 10 percent compared to the same period of the previous year. What are the factors for this success?
Political and economic stability as a basis
Investors want security, not only for the investment itself, but also in the environment. This is why Liechtenstein’s political and economic stability is an important basis for the growth of the fund industry and for the entire financial sector.
EEA and tax compliance as a prerequisite
Most founders of investment funds, so-called fund promoters, want to sell their product in one or more European countries. Therefore, non-discriminatory access to the European market is an absolute prerequisite for Liechtenstein to be considered as a fund domicile. The fact that the Principality of Liechtenstein belongs to the European Economic Area (EEA) enables this access and the tax compliance strategy that has been pursued for many years has led to the reduction of previously existing discrimination in almost all European countries.
When asked about the reasons why fund promoters chose Liechtenstein as their location, two points stand out in particular: speed and quality. These are also the central success factors for the future. The entire process of establishing a fund takes only a fraction of the time in Liechtenstein compared to other renowned fund centers. The Liechtenstein Financial Market Authority (FMA) makes a significant contribution to this. If other fund domiciles calculate in months for fund approval, we speak of days in this country. The proverbial “short distances” are an unmistakable added value for the fund industry.
A fund manager who has relocated recently commented on the quality in Liechtenstein as follows: «… from the first visit it was a completely different experience. That was pure service. “ Another strength should be mentioned in this context: the high willingness to innovate on the part of both market participants and the FMA, especially when it comes to new technologies and forms of investment.
Nachhaltigkeit als angenommene Herausforderung für die Zukunft
Nachhaltigkeit in der Finanzbranche ist in aller Munde. Sie ist nicht nur wichtig für unsere Zukunft, sie ist derzeit auch das beherrschende Thema im Bereich der Regulierung auf europäischer Ebene. Nachhaltigkeit ist aber auch ein Erfolgsfaktor für den Standort Liechtenstein. Eine inoffizielle Studie des LAFV ergab, dass ca. ein Viertel des Fondsvolumens an Nachhaltigkeitskriterien ausgerichtet ist.