Reconceptualization of Financial Market Law

On February 1, 2025, the new regulatory framework for the supervision of banks and securities firms came into effect. As part of a complete overhaul of the Banking Act, the previously intertwined provisions were separated and structured into distinct, self-contained laws. The Banking Act now exclusively governs prudential supervision of banks, financial holding companies, and mixed financial holding companies. The structure, fundamental concepts, and terminology of the Banking Act have been largely aligned with European Economic Area (EEA) legal foundations to ensure clarity and legal certainty for market participants, regulatory authorities, and courts while safeguarding full access to the EU single market for Liechtenstein banks. Simultaneously with the new Banking Act, the newly enacted Securities Firms Act, the Securities Services Act, and the Trading Venue and Stock Exchange Act also came into force.

Updates from the Office of Justice

Associations that primarily collect or distribute assets intended for charitable purposes are now required to register in the Commercial Register unless they receive an exemption from the Office of Justice. When applying for registration, charitable associations must also submit a declaration confirming their charitable status. Charitable associations that existed as of January 1, 2025, must comply with these new requirements by June 30, 2026.

Recent Jurisprudence

In a decision dated November 8, 2024 (06 HG.2023.56), the Princely Supreme Court ruled on the limitation of information rights for beneficiaries of a foundation. Article 552 (9) (2) of the Persons and Companies Act (PGR) restricts this right to the extent that it must not be exercised with dishonest intent, abusively, or in a manner contrary to the interests of the foundation or other beneficiaries. The justification for restricting access based on “a manner contrary to the interests of the foundation” balances the beneficiaries’ legitimate interest in information with the foundation’s confidentiality interests. Where a valid confidentiality interest of the foundation exists, the right to information is limited to the extent necessary to protect this interest. If litigation is pending between the foundation or its subsidiary and the information-seeking beneficiary, the principle of equality of arms (Article 6 of the European Convention on Human Rights) requires prioritization of the foundation’s procedural confidentiality interests over any strategic use of internal foundation information in legal proceedings.