LIECHTENSTEIN Law and Practice Contributed by: Simon Ott, Andreas Vogel, Husmira Halis and Felix Bayer, Schurti Partners Attorneys at Law Ltd
implementation of anti-corruption recommendations is also reviewed. In Liechtenstein, legal entities are not obliged to introduce an anti-bribery compliance programme and therefore no obligation to report suspected brib - ery exists. However, it is advisable for legal entities to have anti-bribery measures in place as this could avoid criminal and civil liability as a consequence of organisational failure. 3.4 Insider Dealing, Market Abuse and Criminal Banking Law In Liechtenstein, the Market Abuse Regulation is directly applicable. Certain provisions are (as provid - ed for in the Market Abuse Regulation) regulated by national law (Market Abuse Act). Both the provisions of the Market Abuse Regulation and the Market Abuse Act serve to combat market abuse in financial markets. Market abuse is a generic term for unlawful acts in the financial markets and includes both insider dealing, unlawful disclosure of inside information and market manipulation. To be found guilty of insider dealing, it must be estab - lished that the offender, by means of using inside information for their own account or for the account of a third party, even if only with gross negligence, directly or indirectly: • acquires or disposes of financial instruments or auctioned products based on emission allowances to which the information relates; • cancels or modifies orders for the acquisition or disposal of financial instruments or auctioned products based on emission allowances to which the information relates that were placed prior to obtaining the insider information; or • submits, withdraws, or modifies bids in relation to auctions of emission allowances or other auctioned products based on emission allowances to which the information relates. Similarly, this applies to anyone who, as an insider, on the basis of inside information, even if only with gross negligence, recommends (i) the acquisition or dispos -
al or (ii) the cancellation or modification of orders for acquisition or disposal to another person. In addition, the person who, even if only with gross negligence, uses such a recommendation and, in the same respect, does not recognise that it is based on inside information is also to be punished. The unlawful disclosure of inside information and the passing on of recommendations based on such, even if only with gross negligence, are also punish - able offences. In simple terms, inside information consists primarily of precise information that has not been made public, and that, if made public, would likely have a significant impact on the price of those financial instruments or the price of related derivative financial instruments. To be found guilty of market manipulation, it must be proven that the offender – even if only with gross negligence – for example, entered into a transac - tion, placed an order to trade, or displayed any other behaviour, and therefore: • gave false or misleading signals as to the supply of, demand for, or price of a financial instrument, a related spot commodity contract or an auctioned product based on emission allowances; • secured an abnormal or artificial price level of financial instruments, a related spot commodity contract, or an auctioned product based on emis - sion allowances; or • managed or is likely to, under false pretence or by using other artifices or forms of deception, to influ - ence the price of financial instruments, a related spot commodity contract, or an auctioned product based on emission allowances. All of these offences carry a penalty of up to three years. If they are committed intentionally and in rela - tion to benefit values exceeding CHF75,000, the sen - tence is imprisonment of six months to five years. 3.5 Tax Fraud Offences relating to tax obligations are stipulated in the Liechtenstein Tax Act. In particular, it is necessary to distinguish between tax evasion and tax fraud.
184 CHAMBERS.COM
Powered by FlippingBook