LIECHTENSTEIN Law and Practice Contributed by: Bernhard Rankl, Moritz Blasy and Nicolai Binkert, Schurti Partners Attorneys at Law Ltd
• The applicant is a company limited by shares ( Aktiengesellschaft AG) or a European Com - pany ( Europäische Gesellschaft SE). • The seat and headquarters are in Liechten - stein. • The members of the board of directors and the executive board as well as the head of the internal audit department warrant the proper conduct of business at all times (fit and prop - er test), both professionally and personally. • The statutes and regulations of the applicant precisely define the material and geographical scope of business of the bank or investment firm. • The applicant is organised in an appropriate manner for its business activities and has at least a board of directors ( Verwaltungsrat ) responsible for overall management, supervi - sion and control, an executive management ( Geschäftsleitung ) responsible for operations, consisting of at least two members acting jointly, an internal audit department, a risk management department as well as appro - priate procedures for employees to report potential or actual violations of the Banking Act though a dedicated, independent and autonomous channel. • The applicant has a minimum statutory capi - tal of CHF10,000,000 in the case of banks or CHF730,000 in the case of investment firms. In practice, however, the FMA typically requires a statutory capital that exceeds the minimum requirements depending, inter alia, on the institution’s business model. Process Upon receipt of the application, the FMA will send the applicant an acknowledgement of receipt. If facts relevant to the license change during the authorisation procedure, the applicant must immediately submit updated documents or documents adapted to the new situation. All
information provided by the applicant will be treated confidentially and is subject to official secrecy in accordance with Article 31a of the Banking Act. The duration of the authorisation procedure depends primarily on the conclusive - ness and completeness of the information and documents provided in the application. The FMA shall decide on an application for a licence within 12 months of receipt of the complete applica - tion. Any rejection shall be reasoned and the applicant shall be notified within six months of receipt of the application or, if the application is incomplete, within six months of submission of the required information. Prior to submitting the application, a draft ver - sion of the definitive licence application (appli - cation for preliminary review) can be submitted to the FMA. The preliminary review application must be structured in the same way, but its content must be limited to the most important aspects. During the informal preliminary review, the FMA will assess the material aspects in rela - tion to their non-approvability and any potential “red flags”. This primary application/assessment has proven to be an invaluable tool in the past, particularly given that the FMA in this informal process views itself as a supporting service pro - vider and sparring partner. Fees The administrative charges for the application process amount to CHF100,000 in the case of a banking license and CHF30,000 in the case of an investment firm license. Additional charges will accrue for filings with the Liechtenstein Com - mercial Register and legal and notary services. Regulated Activities Banks are companies that carry out one or more of the following transactions on a commercial basis:
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