The international orientation of the Liechtenstein financial center entails a complexity of cross-border private banking regulations. Institutes providing cross-border financial services that are supervised by the Liechtenstein Financial Market Authority (FMA) are obliged to meet the FMA’s requirements and to act in accordance with the regulatory provisions of the country in which the client is domiciled. In 2015, the LLB Group completely revised the cross-border framework from 2011 to limit the legal risks arising from cross-border activity.
The LLB Group’s internal rulings ensure that employees comply with the regulations of the respective target country when engaging in cross-border activities. As part of the implementation of the Focus2015 strategy, the LLB Group decided to strengthen the focus of its international activities on strategically and economically important countries. Thus, we are concentrating our efforts in our onshore markets of Liechtenstein, Switzerland and Austria, in selected markets in Western Europe as well as in the growth markets of Central Europe, Eastern Europe and the Middle East. We largely completed this adjustment in 2015.
We are simplifying our client service in international business by focusing on certain strategically and economically important countries. Furthermore, we are optimising on how we professionally deal with legal and compliance issues: the expenses for meeting the legal and regulatory requirements of a country should be in reasonable proportion to the potential earnings from client relationships and to the legal risks in a particular domicile. This may also result in discretionary judgements and require further clarifications.