LIECHTENSTEIN Trends and Developments Contributed by: Hannes Arnold and Christina Pointner, Gasser Partner
Existing private-benefit trusts generally have until 31 December 2027 to adapt their documents, while exist - ing charitable trusts require separate treatment with important steps due by 31 December 2026. Growing Importance of Family Offices and Wealth Governance The trust reform coincides with another important development: the growing importance of family offices and structured wealth governance. Over the past dec - ade, family wealth has become increasingly interna - tional, with assets, businesses and investments held across multiple jurisdictions. Governance, succes - sion planning, family decision-making and long-term asset preservation, has become as important as tax considerations. Liechtenstein is well positioned for this trend, offering trusts, foundations and corporate entities supported by specialised legal, fiduciary and financial professionals. This area is likely to remain an important pillar of its financial centre. Investment Funds: Growth and Regulatory Alignment The Liechtenstein fund centre looks back on years of impressive growth. The number of management companies is continually growing, as is the number of newly established funds. The cross-border manage - ment of Liechtenstein funds has become as popular as relocations to Liechtenstein. Private credit has grown rapidly. Institutional investors continue increasing allocations to alternative lending strategies, while companies increasingly view non- bank financing as valuable. AIFMD II introduces a dedicated framework for loan-originating funds with requirements for credit risk management, diversifica - tion, leverage and risk retention. Although incorpora - tion of AIFMD II and ELTIF II into the EEA Agreement is still pending, Liechtenstein has aligned its domes - tic legislation with these standards ahead of formal incorporation. This ensures Liechtenstein-based fund structures remain fully competitive within the Euro - pean market. From Blockchain Pioneer to MiCAR Jurisdiction Liechtenstein’s digital asset sector has entered a new phase of development. In the past, Liechten - stein attracted international attention with the Token
and Trusted Technology Service Provider Act (TVTG), establishing one of the world’s first comprehensive legal frameworks for the token economy. Today, Liechtenstein’s position is shaped by the inter - action of two complementary frameworks. MiCAR provides a harmonised European regulatory regime for crypto-assets and crypto-asset service providers, while the TVTG continues to provide the legal foun - dation for tokenisation and areas outside MiCAR’s scope. As MiCAR becomes fully operational, Liech - tenstein enters this era with practical experience and established legal infrastructure. By 2026, multiple crypto-asset service providers have obtained MiCAR authorisations in Liechtenstein, underlining its rel - evance for the evolving European digital asset market. The digital asset market has also matured significant - ly. Beyond cryptocurrencies, attention has shifted to tokenisation. Financial institutions and asset manag - ers are exploring blockchain-based representation of traditional assets, including fund units, bonds and debt instruments, equity participations, private mar - ket investments, real estate-related assets and other transferable rights. All in all, digital assets and tokeni - sation will become increasingly integrated into main - stream financial services. Liechtenstein’s combina - tion of civil-law recognition under the TVTG, practical supervisory experience and access to the European market places the jurisdiction in a favourable position to participate in this development. Corporate Law Modernisation and Digitalisation Liechtenstein has also undertaken significant corpo - rate law reforms. Recent amendments to the Persons and Companies Act (PGR) have created the possibility to incorporate certain companies digitally and to file electronic applications to the commercial register. The commercial register is being further modernised, with a project scheduled for completion in the second half of 2026 that will enable all entries to be submitted electronically, regardless of a company’s legal form. Hybrid and virtual meetings have also been legally established on a permanent basis, meaning all cor - porate meetings can be held virtually. The implementation of Directive (EU) 2019/2121 (the “Mobility Directive”) is also underway, introducing a
594 CHAMBERS.COM
Powered by FlippingBook