Market Overview – Liechtenstein

The Place for Setting-Up an Alternative
Investment Fund ("AIF")

Kai Renning, Managing Director, XOLARIS Capital AG, Liechtenstein

Liechtenstein, which has been a member of the European Economic Area (EEA) since 1995, has
fully implemented the European directives for UCITS and AIFM at national level; it has done so in its legislation on specific undertakings for collective investment in transferable securities (UCITSG) and on alternative investment fund managers (AIFMG). Liechtenstein funds, their
providers and their managers are thus subject to exactly the same requirements at European level in the form of rights and obligations as those in EU member states and other EEA states. This includes
restrictions on constitutive documentation, as well as equal participation in the European internal
market via passporting. Investors, in turn, enjoy the same regulatory protection in all countries that have signed up to the European AIFM Directive.

The OECD has also been giving Liechtenstein high marks in its country assessments since 2015.
Liechtenstein now has the same rating as Germany,
for example, and takes effective action against tax fraud and tax evasion. Liechtenstein also
committed to the OECD's AEOI standard (exchange of certain information on financial accounts in tax matters) back in 2014. Liechtenstein's AEOI now covers well over 100 countries, including EU
member states. Here too, Liechtenstein ensures more tax transparency for foreign investors.

In addition to any legal and fiscal parameters, the Principality of Liechtenstein offers other advantages with significant added value when compared to other EEA member states; especially when it comes to the practical implementation of planned
financing structures. In this context, the Liechtenstein
Financial Market Authority ("FMA") deserves special mention, as it distinguishes itself through its highly specific practical knowledge and experience, both in terms of the market as well as in terms of investors and products. In general, the deadlines set for regulatory investigations are also significantly undercut; and this, which creates a high
degree of certainty for planning purposes for product suppliers and regulatory authority stakeholders.

The Liechtenstein Investment Fund Association ("LAFV") should also be cited. This organization was not created just to market Liechtenstein as a fund location, but rather to gather together the interests of market participants and to represent them to regulators and other equivalent protagonists. One helpful example of the usefulness of how useful synergies can be is, without doubt, the standardization constituent documentation, which has led to a significant reduction in costs and effort associated with the design of new financing projects. In addition, the LAFV also acts as a publication body for all investment fund structures in the country, thereby ensuring maximum transparency.

more: https://www.yumpu.com/en/document/read/65724787/the-xolaris-market-news-n01
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