Content 2 FOREWORD 4 PROGRESS REPORT LEGISLATIVE AND REGULATORY CHANGES 22 THE LIECHTENSTEIN BANKING SECTOR ORGANISATION

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1 annual report 2014

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3 Content 2 FOREWORD 4 PROGRESS REPORT LEGISLATIVE AND REGULATORY CHANGES 22 THE LIECHTENSTEIN BANKING SECTOR Liechtensteinische Landesbank AG 25 LGT Bank Ltd. 26 VP Bank AG 27 NEUE BANK AG 28 Volksbank AG 29 Valartis Bank (Liechtenstein) AG 30 Banque Havilland (Liechtenstein) AG 31 Bank Frick & Co. AG 32 EFG Bank von Ernst AG 33 Raiffeisen Privatbank Liechtenstein AG 34 Kaiser Partner Privatbank AG 35 Bank Vontobel (Liechtenstein) AG 36 Bank Alpinum AG 37 Union Bank AG 38 ORGANISATION 40 LIST OF LIECHTENSTEIN BANKS 1

4 FOREWORD OF THE CHAIRMAN annual report 2014 Foreword of the Chairman Adolf E. Real, Chairman of the Liechtenstein Bankers Association The banks figures for the year 2014 speak plainly: We have achieved quite a lot and can be proud of that. Of course, we must also raise a cautionary finger when making that statement and recall that numerous major tasks are still ahead of us. It would be foolhardy to think that the challenges will diminish in the future. But in two or three years, we will be able to say that the pathbreaking, fundamental upheavals are over and that somewhat calmer waters are ahead. So while we should not pat ourselves on the back euphorically in light of the respectable results, we can at least say: We have succeeded in ensuring that our recognised, attractive financial centre enjoys trust and appeal. In 2014, the banks presented figures that were better than they have been since These figures are the result of hard work and firm confidence in our own performance. We must continue to follow this unswerving course. Six years ago, we spoke of the courage, prudence, and decisiveness that would be necessary after the financial crisis. And that is exactly what the banks have shown. They have been courageous and have opened themselves up further to the outside, they have consolidated their strategies and demonstrated their self-confidence as representatives of one of the smallest financial centres worldwide in an increasingly globalised world, and they have repeatedly proven their performance with innovative products and services. They have been decisive in not leaving the global market solely to the major institutions, as well as in actively shaping the transformation of their domestic hub in Liechtenstein. Not least of all, they have acted with prudence. Banks in Liechtenstein conduct themselves in a calm but consistent manner, and they act purposefully but fairly. They have no reason to hide. The 2014 results are impressive: The doubling of net new money shows that clients trust us. The core ideas and basic values of our Roadmap 2015 were to demonstrate quality, stability, sustainability, and transparency in order to strengthen trust. CHF 216 billion in assets under management have returned us to the level of the record year of 2007, with what is still one of the highest core capital ratios worldwide, namely an average of about 19 %. And it is gratifying that assets in the Liechtenstein banking centre itself also increased by 6 % over the previous year all in an extra ordinarily challenging market environment. Once again, the Liechtenstein Bankers Association (LBA) proved to be an efficient service provider for banks in Numerous regulatory provisions, such as the CRD IV package and FATCA, were implemented in practice, and the foundations for implementation of the automatic exchange of information (AEOI) were developed. As an early adopter, Liechtenstein has committed to implementing AEOI early on. The LBA not only welcomed this step but also actively accompanied it through participation at the 2

5 FOREWORD OF THE CHAIRMAN annual report 2014 national and international level. Also in regard to finding a solution for the incorporation of the EU supervisory structures into the European Economic Area, we worked hard at home and abroad so that all the products of our banks will continue to enjoy smooth and free market access. Through numerous working groups composed of representatives of the banks and the LBA, the LBA worked intensively on these measures, and it also provided a broader basis for the LBA by introducing passive membership. The LBA was also a driver of the tax compliance guideline it issued. For quite some time, Liechtenstein banks have clearly committed to managing assets only if they are declared for tax purposes. This tax compliance practiced by the banks will continue to be implemented consistently. It was and continues to be a strong signal both at home and abroad. We heard this again in 2014 in our numerous conversations with international representatives of business, politics, and the media, in which we were able to provide information on the progressive transformation and future positioning of our banking centre. Liechtenstein is perceived also from abroad as a modern, agile, and most importantly trustworthy financial centre. I would therefore like to express my warmest gratitude to the Secretariat team of the Liechtenstein Bankers Association under the direction of Simon Tribelhorn, which approached these major challenges consistently over the past months and even years and has helped our banking centre gain an even better reputation. But also the more than 100 bank employees who served in working groups and committees made an important contribution to the further development of the financial centre. I would also like to thank the Government, Parliament, the Liechtenstein business associations, and the Financial Market Authority Liechtenstein. Together, we achieved a lot in And: We will achieve even more! Already today, entirely new tasks await us. The clients of today and especially those of tomorrow are looking for stability, long-term thinking, but also new, modern banking that meets the demands of the 21st century. Many questions are still open. How do we deal with increasing digitalisation? How do we deal with new, young clients the digital natives who expect a different kind of banking than their parents and grandparents? How do we deal with the protection of personal data in a transparent world? How do we solve the upcoming challenges in human resources, where new qualifications continue to be demanded? And in what direction must we lead a country that is characterised by a policy of prudence? A country that needs farsightedness, courage, and drive to protect, strengthen, and keep building on the foundation of our banking and financial centre. I am optimistic when I look to the future. I am optimistic because we have capable people the most important parameters for a healthy business location and just as important as stability and sustainability. But we have to take care of these as well. And we (still) have resources at our disposal. We should use them and invest them, so that we can now make our upcoming Agenda 2020 a reality, and so that we can continue to compete globally and remain an indisputable part of Liechtenstein s national economy. Adolf E. Real Chairman 3

6 PROGRESS REPORT 2014 annual report 2014 Progress Report Organisation of the Association 1.1 Members The Liechtenstein Bankers Association (LBA) is one of the most important business associations in the country. It is an association independent of all state or other support and engages in valuable assistance and lobbying work at home and abroad for the benefit of all member banks on the basis of voluntary membership. In 2014, Union Bank AG, Vaduz, joined the LBA as a new member. With the admission of Union Bank AG, the LBA now represents all fully licensed, active banks in Liechtenstein. After receiving supervisory approval by the Financial Market Authority (FMA) Liechtenstein, VP Bank AG acquired all shares of Centrum Bank AG. Centrum Bank AG thus became a 100 % subsidiary of VP Bank AG on 7 January 2015 and, as of mid-2015, is now fully integrated into VP Bank AG. The LBA thus continues to represent 14 banks as of mid Starting 1 February 2014, the LBA also opened up its services to other financial market participants by introducing passive membership. In this way, the Executive Board responded to a growing demand in the financial centre, offering the opportunity to make use of synergies, bundle resources, and avoid duplication. Passive members benefit from some of the services of the Association, but without a say in its operations. By mid-2015, the following organisations had already joined the LBA as passive members: Ernst & Young AG, Inventx AG, KPMG AG, Ott, Hagen & Partner AG, PricewaterhouseCoopers AG, ReviTrust Grant Thornton AG, and The Boston Consulting Group (Switzerland) AG. Executive Board Adolf E. Real Chairman Alfred W. Moeckli Vice-Chairman VP Bank Norbert Biedermann LGT Roland Matt LLB Willy Bürzle Neue Bank Dr. Andreas Insam Valartis Bank Peter Lang Banque Havilland Christian Reich Kaiser Partner 4

7 PROGRESS REPORT 2014 annual report 2014 The staff of the LBA Secretariat (from left to right): Sabine Langenegger, Andrea Brüllmann, Silvia Heron, Simon Tribelhorn, Rafik Yezza, Esther Eggenberger, Anita Hardegger, Johann Wucherer 1.2 Executive Board Until the ordinary General Meeting on 12 March 2014, the Executive Board was headed by its Chairman, Adolf E. Real, and its Vice- Chairman, Roland Matt (Liechtensteinische Landesbank AG). At the ordinary General Meeting on 12 March 2014, a full election of the Executive Board was held. Adolf E. Real was confirmed as Chairman for another term of two years. According to the principle of rotation, Alfred W. Moeckli, CEO of VP Bank AG, was elected Vice-Chairman. The following banks were also re-elected to the Executive Board: LGT Bank AG Liechtensteinische Landesbank AG NEUE BANK AG Centrum Bank AG Kaiser Partner Privatbank AG Valartis Bank (Liechtenstein) AG Banque Havilland (Liechtenstein) AG (formerly Banque Pasche (Liechtenstein) AG) As a consequence of the takeover of Centrum Bank AG by VP Bank AG, Centrum Bank AG has left the Executive Board of the LBA. The subsequent ordinary General Meeting in March 2015 therefore decided to reduce the number of banks on the Executive Board to seven, thus avoiding the need for a replacement election. The following changes took place during the 2014 / 2015 reporting year: Dr. Olivier Jaquet, Centrum Bank AG (resigned due to takeover of Centrum Bank AG by VP Bank AG) Peter Lang (successor of Robert Rastner, Banque Havilland (Liechtenstein) AG) The Executive Board held 12 regular meetings in General Meeting The ordinary General Meeting of the LBA took place on 13 March 2014 in the presence of 13 of the total of 14 representatives of the member banks. Due to the increasing challenges in the Liechtenstein financial centre and the need for other financial intermediaries providing MiFID services to join an investor protection system, the ordinary General Meeting decided to open up the Deposit Guarantee and Investor Protection Foundation (EAS), which was established in 2001 and has been steadily expanded since then, to include other Liechtenstein financial intermediaries as well. This opening represented a first intermediate step, allowing investment firms under the Banking Act, asset managers under the AMA, management companies with individual portfolio management under the UCITS Act, and AIFMs with individual portfolio management under the AIFM Act to join the banks EAS starting on 1 April 2014, but subject to certain restrictions. 5

8 PROGRESS REPORT 2014 annual report 2014 On 14 May 2014, the LBA convened a Plenary Meeting, at which all members were briefed on current dossiers. The focus included the upcoming signing of the Intergovernmental Agreement (IGA) between Liechtenstein and the United States relating to the implementation of FATCA as well as the agreement in principle of the EU-G5 countries (Germany, France, Italy, Spain, and the United Kingdom) to introduce automatic exchange of information (AEOI) in the future on the basis and according to the model of FATCA. The EU parliamentary elections were also an important topic, given that their outcome was expected to have a substantial impact on elections at the level of the Commission as well as all future EU policy. At the regular extraordinary General Meeting in the autumn, which took place on 22 October 2014, the 2015 budget was then approved. At an additional extraordinary General Meeting convened on 21 January 2015, the banks unanimously decided to further expand the tax compliance guideline, which was originally adopted some time ago, and in that way to prepare members and their clients for future automatic exchange of information. The amended guideline continues to uphold the principle that it is primarily the responsibility of clients themselves to honour their tax obligations. Additionally, banks now undertake to supplement the already implemented measures by applying expanded due diligence to existing clients in accordance with the risk-based approach in order to clarify and ensure tax-compliant conduct. This means that banks are called upon to examine existing clients and, where necessary, to obtain confirmation of tax compliance. Beyond this, banks must take measures to prevent business relationships from being removed from the scope of automatic exchange of information (AEOI). Clients whose tax domicile is in a country with which an AEOI implementation agreement is to be concluded may not carry out any transactions to transfer a business relationship to a country that has not committed to the OECD standard. This is intended to prevent the withdrawal of assets from the taxation of a client s country of domicile. Additionally, the requirements on cash withdrawals were adjusted. The same extraordinary General Meeting on 21 January 2015 approved the transformation of the Deposit Guarantee and Investor Protection Foundation (EAS) into a protected cell company in accordance with articles 243 et seqq. of the Law on Persons and Companies (PGR). This replaced the interim solution adopted in April 2014 and now allows the EAS to offer its services to a wider range of financial intermediaries without restriction and to perform its task as a combined guarantee scheme for the entire financial centre. At all these meetings, the members were regularly informed about the current status of the integrated financial centre strategy and international cooperation, the EU / EEA supervisory structures, and the work in connection with the EAS. 1.4 Secretariat Employees / Organisation The Secretariat continues to be composed of eight employees (6.7 full-time equivalents) Events and conferences On 21 February 2014, the Secretariat organised an information event at VP Bank AG in Triesen relating to the consultations on amendment of the Banking Act to implement the CRD IV package. Together with the external expert appointed by the Government, Prof. Dr. Dirk Zetzsche of the University of Liechtenstein, the FMA representatives involved in this extensive legislative project presented the Liechtenstein implementation of the CRD IV provisions. In connection with the consultations, the bank representatives should be given the opportunity to discuss the core aspects of the legislative package with the regulators in order to raise questions at an early stage and remedy any uncertainties. The event met with a great response, and about 40 people attended. On 27 February 2014, the Second International Tax Practice Conference took place at the SAL in Schaan, where current issues relating to the Multilateral Convention on Mutual Administrative Assistance were discussed. The event was again organised and hosted by the LBA together with three renowned business and tax consultant firms in Liechtenstein (Sele Frommelt & Partner Attorneys at Law), Austria (LeitnerLeitner), and Germany (Flick Gocke Schaumburg). More than 100 participants accepted the invitation. High-calibre speakers from the OECD, the German Federal Ministry of Finance, the three firms, and the Liechtenstein Office for International Financial Affairs (SIFA) provided insight into what the future holds after signature of the Multilateral Convention on Mutual Administrative Assistance. With a talk on the Multilateral Convention and the path to an OECD standard for automatic exchange of information, Achim Pross, Head of the International Co-operation and Tax Administration Division of the OECD, opened the afternoon meeting. Michael Sell, Head of the Directorate-General for Taxation at the German Federal Ministry of Finance, explained to what extent a solution for dealing with the past is possible and even necessary from a German perspective. After a brief break, Karsten Randt, Certified Tax and Criminal Lawyer and Partner at Flick Gocke Schaumburg, illuminated the impact of tax regularisation on clients, banks, and professional trustees. Using the example of Austria, Rainer Brandl and Yvonne Schuchter of LeitnerLeitner and Heinz 6

9 PROGRESS REPORT 2014 annual report 2014 Frommelt of Sele Frommelt & Partner presented opportunities in a world of tax compliance. The Second International Tax Practice Conference concluded with a panel discussion with Achim Pross and Michael Sell as well as Katja Gey, Director of the Liechtenstein Office for International Financial Affairs (SIFA), and Uwe Ritzer, Business Correspondent of the Süddeutsche Zeitung. As the organisation responsible for the Deposit Guarantee and Investor Protection Foundation (EAS), the LBA for the first time on 21 March 2014 invited representatives of the German-speaking deposit guarantee schemes from Germany, Luxembourg, Austria, and Switzerland to Malbun for their second working meeting. The total of 21 representatives discussed numerous current issues relating to deposit guarantee schemes and the stability of banks. The recast of the EU Deposit Guarantee Scheme Directive was the main topic on the agenda, along with the further development of investor compensation. There was also a vigorous exchange of ideas on EU measures to promote the stability of banks and their impact on deposit guarantee schemes. The focus was on the planned Bank Recovery and Resolution Directive. On 4 April 2014, the traditional bilateral meeting between the Swiss Bankers Association (SBA) and the LBA took place in Zurich. The delegations, headed by CEOs Claude-Alain Margelisch (SBA) and Simon Tribelhorn (LBA), discussed numerous current issues. The top priority on both sides concerned developments relating to tax cooperation and financial market regulation, especially the OECD standard on automatic exchange of information. Important dossiers concerning the United States as well as the EU were also on the agenda. These included questions relating to FATCA, Swiss relations with the EU, the revised FATF recommendations, the various national transaction taxes and the discussions concerning a European transaction tax, as well as the current status of MiFID II. Another important agenda item was cooperation with the European Banking Federation, of which both business associations are members. Starting on 10 April 2014, the LBA together with the Center for Young Professionals (CYP) organised events in three modules entitled All About Money to promote basic financial knowledge. The goal was to discuss both the macroeconomic context as well as individual investment decisions and to examine the opportunities and risks of financial products (see also point below). On 22 April 2014, a delegation of the LBA Secretariat travelled to Brussels and, together with a delegation of Finance Norway, met with European business associations. The goal of the meeting was to discuss the EU supervisory structures and their implementation within the EEA as well as how to ensure homogeneous further development of the Single European Market. The annual 5-country meeting of the German-speaking bankers associations took place from 15 to 17 May This year s host was Austria, which invited the delegations to Vienna. Apart from tax issues, the focus of the discussions was primarily on current European financial issues, with a strong emphasis on the consequences of the financial market crisis and the resulting regulation. On 1 June 2014, the LBA presented the Liechtenstein banking and financial centre at a business lunch hosted by the German-Swiss Chamber of Commerce in Zurich. More than 30 participants gained first-hand information on the topic of The Liechtenstein Financial Centre in Transition Challenges and Opportunities. To prepare and introduce the FATCA regulatory package in Liechtenstein, the LBA in cooperation with Ernst & Young (EY) held an information event in the Vaduzer Saal on 3 June About 200 representatives of Liechtenstein financial intermediaries and public authorities gained first-hand information on the FATCA Agreement concluded with the United States in mid-may and the practical consequences thereof. In addition to talks by various experts on international tax matters, the event also discussed specific practical cases. Using an entire range of case studies, the representatives of the associations affected by FATCA (LBA, the Liechtenstein Investment Fund Association, the Liechtenstein Institute of Professional Trustees and Fiduciaries, and the Liechtenstein Insurance Association) examined questions relevant to practice from the perspective of Liechtenstein. The overwhelming response was an indication of the demand for information and clarification regarding the issue among both public authorities and financial intermediaries. On 10 June 2014, the LBA conducted the first Tax Talks together with PWC. Tax experts from seven countries spoke first-hand and in-depth on their tax and disclosure regimes. The event met with a very good response from all member banks, as evidenced also in the wide range of participants. On 11 June 2014, the LBA held its 2nd Vienna Evening. During an exchange of ideas at the City Palace in Liechtenstein in Vienna, the LBA welcomed numerous representatives of Austrian politics, business, and media. On the Liechtenstein side, the LBA attended together with H.S.H. Maria-Pia Kothbauer, Ambassador of the Principality of Liechtenstein in Vienna. In his welcoming remarks, LBA Vice-Chairman Alfred W. Moeckli outlined the process of transformation in the Liechtenstein financial centre. H.S.H. Ambassador Maria-Pia Kothbauer spoke about the history of Liechtenstein and the Liechtenstein financial centre, which is traditionally closely tied to the history of Austria. In light of current events, LBA Director Simon Tribelhorn focused his remarks on 7

10 PROGRESS REPORT 2014 annual report 2014 Liechtenstein s international integration and the implementation of global standards as a significant part of the transformation. With this event, the Liechtenstein Bankers Association followed up on the exchange of ideas in June 2012, which had met with a positive response. A special highlight of the evening was an exclusive tour of the Liechtenstein City Palace, which had just reopened after being completely renovated last year. On 24 June 2014, the Liechtenstein Bankers Association for the third time invited Members of the German Parliament (Bundestag) for an exchange of ideas in Berlin. The meeting took place in a friendly atmosphere, and the participants enthusiastically took advantage of the opportunity to discuss differing viewpoints. The event was held in the immediate vicinity of the Reichstag building at the German Parliamentary Society, the seat of the non-partisan association of Members of the German Parliament. Under the patronage of SPD MP and Deputy Speaker on Financial Policy, Manfred Zöllmer, the members of several committees were invited to attend. Minister of Economic Affairs and Deputy Prime Minister Thomas Zwiefelhofer as well as FIU Director Daniel Thelesklaf spoke about Liechtenstein s development. The highlight of 2014 was the 8th Liechtenstein Bank Day. The keynote speaker was OECD tax head Pascal Saint-Amans, who spoke on the introduction of automatic exchange of information (AEOI) and discussed future developments in the area of taxation. Adolf E. Real expressed his satisfaction that not only numerous representatives from business, politics, and the media accepted the LBA s invitation, but also that a cutting-edge and exciting keynote speaker was able to attend this year again. Real thanked Pascal Saint-Amans for his participation in the Bank Day and praised his accomplishments as a pioneer of OECD tax policy. Together with three member banks, the LBA again presented the Liechtenstein banking and financial centre at the HSG Banking Days in October The event is the largest recruiting event at the University of St. Gallen in the autumn semester and serves as a bridge between the most world-renowned financial service providers and interested students (see also point below). On 27 November 2014, the LBA presented the annual Banking Award at the University of Liechtenstein for the best master s and bachelor s theses in Banking & Finance. Concluding the ceremony, Robert Priester, Deputy CEO of the European Banking Federation (EBF), spoke on The European Supervisory Structure challenges and experiences so far. 1.5 LBA committees / working groups In 2014, more than 130 employees of various member banks worked together in a total of nine committees (Finance, Communication, Loans, Sustainability, Operations, Staff, Staff Development, Legal & Compliance, and Taxes) as well as in numerous working groups. Compared with the previous year, this again represents an increase in the number of employees from the member banks working actively in the LBA bodies. The number of working groups appointed in the past four years has likewise strongly increased, thus reflecting the challenges and the wide range of issues the LBA deals with. 1.6 National working groups / memberships At the national level, the LBA again was active in numerous external working groups and commissions. 1.7 International working groups / memberships ILast year again, the members of the Secretariat were able to serve in various working groups and commissions of the Swiss Bankers Association (SBA). Of particular note are the Physical Security Commission, the Joint Security Commission, the Legal and Compliance Commission, the Training Commission, and the Payment Transactions and Investor Protection Working Groups. In addition, the LBA was active in various committees and working groups of the European Banking Federation (EBF). This included in particular the Board, the Executive Committee, the Payments Systems Committee, the Legal Committee, the Financial Markets Committee, the Fiscal Committee, the Anti-Money Laundering & Anti-Fraud Committee, the Retail Committee, and the Banking Supervision Committee as well as the Working Groups on Automatic Exchange of Information (AEOI), Cyber Security, and Physical Security. The LBA has been a member of the European Payments Council (EPC) since The LBA is also a member of the Swiss Payments Council. Since 1 September 2014, the LBA has also been a member of the European Parliamentary Financial Services Forum (EPFSF). The EPFSF promotes dialogue between the European Parliament and the financial services industry, offering a forum for open and informal talks on political issues. While Liechtenstein is a member of the European Economic Area and thus required to incorporate all EU legal acts relating to the financial sector, the country does not have a de facto institutionalised voice within the EU. By joining this important political forum, the LBA, as one of the leading business associations in Liechtenstein, will henceforth be able to contribute even more strongly to the political debate at the European level. 8

11 PROGRESS REPORT 2014 annual report 2014 Since July 2010, the Deposit Guarantee and Investor Protection Foundation of the LBA (EAS) has been a full member of the two international associations of deposit guarantee systems, the International Association of Deposit Insurers (IADI) and the European Forum of Deposit Insurers (EFDI). Thanks to these memberships, Liechtenstein can participate more actively in the debates on the future development of European and international standards relating to deposit guarantee and investor protection schemes and on relevant stability topics, and it can address the need for new rules in this area to be compatible with the constraints of small states. In addition to the EFDI annual meeting, the LBA also took part in two meetings of the 5-country group of the German-speaking deposit guarantee schemes in The EAS organised the second meeting, which took place on 21 March 2014 in Liechtenstein. The third meeting was held on 11 / 12 November 2014 in Berlin. 2. Review of the year General remarks The Liechtenstein banking centre looks back on a very demanding year. Given the very challenging environment, the year was nevertheless positive on the whole. Despite the difficult starting position, the banks were again strong competitors during the past year. They are very stable compared to banks both in Europe and internationally, and they stand on a strong foundation. Nevertheless, the farreaching transformation process of the Liechtenstein financial centre continues. Also in the international competitive environment, the situation has become more intense in recent years. The tax discussion, the debt crisis of the European countries, and the associated weakness of the euro and strength of the Swiss franc as well as the interest rate development continued to determine the framework conditions in Thanks to the various political interventions, the stabilisation measures of the Swiss National Bank, the rescue packages for individual EU countries, and the EU rescue umbrella, there are now at least signs of gradual recovery and stabilisation. In this difficult environment, the LBA has positioned itself as an important and reliable partner for the Government and Parliament. At the same time, it was able to serve as a pioneer and role model for the financial centre thanks to its various initiatives and measures at the self-regulation level as well as the clear proactive strategy in tax matters, thus providing backing to the country s tax compliance strategy. The LBA can claim to have a significant impact on the country s reputation today and its thoroughly positive image in international bodies. Thematically, the focus for the LBA in the past year was again on international cooperation in tax matters, developments relating to the OECD standards on automatic exchange of information, and the stability of the financial centre. At the same time, numerous other topics such as the new positioning of the financial centre in general and the fund centre in particular, publication of the revised FATF recommendations and revision of the Third EU Money Laundering Directive, international integration and participation, FATCA, the European Market Infrastructure Regulation (EMIR), the SEPA End-Date, cross-border banking, MiFID II, implementation of CRD IV, and questions relating to basic and continuing training in the financial centre and quality assurance dominated the agenda. The Roadmap 2015 adopted in 2011, with more than 30 fields of action, proved to be an important guide in this regard, in order to respond appropriately and efficiently to the changed environment and at the same time to further develop the financial centre for the long term in a purposeful way. 9

12 PROGRESS REPORT 2014 annual report Focus areas of Strategy With the Roadmap 2015, which was presented to the public at the beginning of 2011, the LBA has given itself a holistic and forwardlooking strategy that goes beyond the tax debate, building on the parameters of quality, stability, and sustainability. The strategy is based on a vision of Liechtenstein as a respected, sustainably acting, and stable financial centre in the heart of Europe, distinguished by a high degree of innovation and efficiency and proven competence in wealth management, thus enabling it to offer tailored products and high-quality services for demanding domestic and international clients. Many of the defined fields of action have meanwhile been implemented. For instance, the internal processes of the LBA have been further institutionalised and professionalised in order to identify opportunities, risks, and new business areas at an early stage and to implement potential innovations. Apart from implementation of various measures at the level of the banking centre, an important focus was on further sharpening the profile of the financial centre together with the Government and the other financial centre associations. For instance, under the leadership of the LBA, a joint web platform was realised to provide an informative overall view of the entire Liechtenstein financial centre. Similar projects and the consistent implementation of other work packages set out in the integrated financial centre strategy are intended to ensure that Liechtenstein continues to be an attractive location and is able to give its clients a long-term perspective in an environment characterised by change Liechtenstein Banking Barometer 2020 To properly set the course for the future and to recognise potentials, the Secretariat for the first time conducted a Liechtenstein Banking Barometer 2020 survey. All member banks participated in the survey. The survey showed that, despite difficult framework conditions, the Liechtenstein banks are looking toward the future with optimism. The evaluation of the survey is now being incorporated into the LBA s Roadmap 2020 the continuation of the Roadmap 2015 launched in Excerpts from the evaluation have already been published in the Liechtenstein Banking Barometer 2020 article in the Bankenmagazin (issue 33) Public affairs / International relations Convinced that as a small financial centre in the middle of Europe, it is all the more important to continue raising awareness and cultivating relationships for the benefit of the financial centre s reputation in Liechtenstein and abroad on a permanent basis, the banks and the LBA as the representative of their interests again engaged in intensive efforts this year to expand their national and international, and especially their European, relations. Numerous measures and events were used to further strengthen dialogue. On the one hand, contacts with decision-makers and opinion-makers in the neighbouring countries of Switzerland, Germany, and Austria were further expanded and deepened; on the other hand, the cultivation of relationships in Brussels and at key bodies such as the OECD and the FATF was further intensified. These activities were based on the guiding principles adopted in 2013 as well as the mission statement, which defines the LBA s understanding of itself as the voice of the banks in Liechtenstein and as the interface between the banks, policymakers, the public administration, consumers, and the private sector. Beyond this, the LBA also defined guidelines for information activities and the cultivation of relationships in Liechtenstein and abroad. In this regard, the LBA sees itself primarily as a specialist body and will consistently provide information on the developments in the financial centre and especially abroad always abiding by the principles of transparency, openness, objectivity, and reliability. As a signal to the outside, the association was entered into the Transparency Registry of the EU in For the purpose of intensifying public affairs work at the EU level, the LBA also became a member of the European Parliamentary Financial Services Forum (EPFSF). By joining this important political forum, the LBA, as one of the leading business associations in Liechtenstein, will henceforth be able to contribute even more strongly to the political debate at the European level. In total, the LBA met with more than 130 politicians from all political parties and opinion-leaders from the neighbouring countries last year and conducted interviews and background talks on the financial centre with journalists. In all these talks, the LBA always benefited from the fact that it could draw and build on the strategy of dialogue with its neighbours and in Brussels it has pursued for years. Over the past years, the LBA has succeeded in being a credible conversation partner for policymakers, public authorities, the private sector, and the media in Liechtenstein and abroad. The honest efforts and credible implementation of reforms are being noticed and appreciated. This is due not least of all to the intensive information and network policy of the LBA pursued so far. Media representatives have found a conversation partner in the LBA that makes itself available for enquiries competently, rapidly, and unbureaucratically. The conversations show a clear pattern: Since the outbreak of the worldwide financial crisis, the emphasis of political topics has shifted; the major challenges relating to public debt, the rescue umbrella, etc., have created new priorities. Liechtenstein has receded into the background at the political level, and questions such as attractiveness of the location and unique selling propositions (USPs) have in turn become more important. 10

13 PROGRESS REPORT 2014 annual report Cooperation in tax matters Tax cooperation may be just one of many topics. But it still continues to be a very important one. Since the Liechtenstein Declaration in March 2009, Liechtenstein has concluded nearly 40 OECD-compliant tax information exchange agreements (TIEAs). These include several TIEAs with large and significant countries such as the US, Germany, Canada, Japan, India, France, the Netherlands, the Nordic countries, and Australia. Additionally, numerous double taxation agreements have been concluded. With the conclusion of the two important double taxation agreements with Germany and the UK, Liechtenstein now has a total of 14 double taxation agreements as of the end of For Liechtenstein, especially the agreements concluded with major countries such as the US, the UK, Germany, and France have a positive impact on credibility and reputation. With the agreements, clear legal bases have been created to give legal certainty to the banking and financial centre, as well as the entire economy and its clients and partners. Moreover, especially the two DTAs with Germany and the UK represent two important agreements with significant EU, OECD and G20 countries. From a Liechtenstein perspective, they serve as an important signal for other larger countries. Thanks to its agreement with the UK, Liechtenstein has furthermore proven in a sustainable way that it is actively seeking solutions based on the rule of law for the financial centre s clients on the path to tax compliance. With Austria, a further agreement on the basis of the final withholding tax model was negotiated at the beginning of 2013, ensuring both taxation and regularisation of the past as well as proper taxation in future. Alongside the UK agreement, this agreement serves as a further model for Liechtenstein to allow regularisation and at the same time ensure the justified tax demands of the partner country. For implementation of both agreements, the LBA appointed dedicated working groups with the goal of finding answers and solutions to practical questions and sample templates for the entire financial centre. The final withholding tax agreement with Austria was adopted by the Liechtenstein Parliament in September 2013 and the implementing legislation in the November 2013 session. Both entered into force on 1 January Already in November 2013, the Government reaffirmed its commitment to the OECD standards on tax cooperation by way of a Government declaration and signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters of the OECD and the Council of Europe. At the same time, the Government extended the offer at the level of the OECD and the Global Forum to participate actively in the elaboration of an international standard on the exchange of information. The Government signalled its willingness to conclude bilateral agreements on automatic exchange of tax information on the basis of the future OECD standard, taking account of the legitimate interests of both parties. In a joint statement with 40 other countries just a few days after the Government declaration, Liechtenstein also joined the EU-G5 project for implementation of the OECD standards on automatic exchange of information. Finally, at the meeting of the Global Forum in Berlin on 29 October 2014, more than 50 countries including Liechtenstein signed a multilateral framework providing a clear political commitment to the introduction of AEOI. Other countries have joined since then, so that the number of countries that will introduce AEOI now exceeds 100. Liechtenstein will accordingly be one of the countries that provide tax data automatically for the first time in 2017, for the tax year beginning on 1 January With all these measures, the Government has established important milestones for the future development of the financial centre. The thoroughly positive response especially also from our international contacts underscores that Liechtenstein has taken the right steps in this regard. More than ever, Liechtenstein is now perceived as a credible and reliable partner. By committing to automatic exchange of information as the future standard, Liechtenstein has also put itself in a position to actively help shape the future tax dialogue with its partner countries. The focus of the future agreement strategy will consistently and properly continue to be primarily on conclusion of further double taxation agreements, leading up to a DTA network. Negotiations of about 20 new double taxation agreements are planned. The countries with which negotiations are to be conducted are important trading partners as well as partner and growth countries that will in future be of great importance to Liechtenstein. The LBA is convinced that Liechtenstein s path of international cooperation is the right one, and it fully supports this path. Already at a very early stage, the LBA started dealing with automatic exchange of information and appointed a specific working group for that purpose. The goal of the working group is to make the necessary expertise available to support the Government and the Fiscal Authority in their regulatory implementation and also to develop implementation aids for all banks in the financial centre. In preparation for the Global Forum meeting in Berlin in October, the LBA working group drafted a fact sheet on automatic exchange of information providing initial information to banks, their clients, and also the media. 11

14 PROGRESS REPORT 2014 annual report FATCA & Intergovernmental Agreement (IGA) After the US Internal Revenue Service (IRS) published the final regulations for the Foreign Account Tax Compliance Act (FATCA) in January 2013, Intergovernmental Agreements (IGAs) on exchange of information were developed under the leadership of the US and the five largest EU countries (France, Germany, Italy, Spain, and the UK) for simplified implementation of FATCA. Meanwhile, more than 100 countries have concluded such IGAs with the United States. The final regulations entered into force on 1 July 2014 and must be complied with in stages. Liechtenstein signed a Model 1 IGA with the US on 16 May 2014 and ratified it on 2 October 2014 by a resolution of Parliament. The IGA contains numerous bilateral simplifications compared with the original FATCA rules. In a working group chaired by the SIFA, the LBA was closely involved in the drafting of the IGA text. Subsequently, the FATCA implementation act was developed under the leadership of the Liechtenstein Fiscal Authority as the competent authority. Here again, the LBA was involved as part of a working group. Moreover, the LBA submitted a detailed opinion on the draft law on 6 August The FATCA implementation act as well as the IGA and the TIEA amendment protocol entered into force on 21 January It is also planned to issue a Q&A covering the points relevant to practice. An initial version was published by the Fiscal Authority on 11 December With support from the LBA working group, the members were given a sample form for documenting legal persons. The Fiscal Authority approved the sample form in a ruling on 5 November The sample form is being analysed for potential improvements and adjusted on an ongoing basis by the working group. Other measures to support FATCA compliance are being planned in coordination with the working group Italy After several months, Liechtenstein and Italy concluded their negotiations on a tax information exchange agreement (TIEA) and additional protocol on 10 February 2015 and defined further steps for tax cooperation. The LBA expressly welcomed the agreement reached. Thanks to the agreement, Italian clients of Liechtenstein financial intermediaries are now able to benefit from the best possible conditions of the new Italian disclosure programme, which is expected to run until the end of September 2015, in order to regularise their tax situation where necessary. With the entry into force of the agreement, Liechtenstein also no longer has to expect any unequal treatment in terms of fund taxation or the Italian financial transaction tax. The agreement offers legal and planning certainty to both clients and Liechtenstein financial intermediaries, and it underscores the tax compliance strategy and credibility of the path pursued by Liechtenstein. Through a specific ad hoc working group, the LBA drafted various sample documents, a fact sheet, and a Q&A on the agreement package and disclosure programme and made these materials available to all of its members Financial centre stability Client trust and the protection of client assets have always enjoyed the highest priority in Liechtenstein. For this reason, Liechtenstein banks attach great importance to solid and high-quality capital adequacy. With an average core capital ratio of about 19 %, Liechtenstein banks are among the best-capitalised in Europe and already today meet the capital requirements under Basel III. In addition to the deposit guarantee scheme, financial centre stability also plays an important role in the overall measures to protect client assets in Liechtenstein. In this regard, the financial centre benefits from the fact that Standard & Poor s again confirmed Liechtenstein s AAA rating in March 2015 with a stable outlook. At the same time, the Liechtenstein banking centre remains in Group 2 of Standard & Poor s Banking Industry Country Risk Assessment (BICRA). As a core element of the new stability-promoting regulations, the CRD IV package (EU rules on implementation of the Basel III framework and other measures) was transposed into national law early on, entering into force on 1 February In conjunction with this, an EU regulation (CRR) which completely replaces the Capital Adequacy Ordinance (ERV) is being declared to have direct effect in Liechtenstein for the first time. Moreover, the banking industry has agreed with the FMA that the new capital buffers will apply immediately upon entry into force. In addition to extensive clarifications and preparatory measures (information event on 21 February 2014), the LBA drafted two detailed opinions on the amendment of the Banking Act and Banking Ordinance. New working groups were established to examine further core aspects of the regulatory package, such as the new liquidity coverage ratio (LCR), the additional restrictions on remuneration policy, and the new supervisory rules governing reporting. The project on adjusting supervisory reporting to the new EU requirements was presented in coordination with the FMA and BearingPoint (software provider) at the FiRE seminar hosted by LGT in Bendern in September In connection with the limitation of the too big to fail risk, the goal has been defined in Liechtenstein to take and implement preventive measures as an initial step. Within the FMA s project on financial stability, the three large banks LGT, LLB, and VP Bank have been classified as systemically important for the Liechtenstein financial centre. As a significant additional measure with preven- 12

15 PROGRESS REPORT 2014 annual report 2014 tive effect, it has been agreed in addition to the required capital buffers that the three involved banks will for the first time and voluntarily prepare recovery plans in 2014 in accordance with the EBA specifications and present them to the FMA for review. Based on these drafts, the recovery plans will be further developed and improved on an ongoing basis in accordance with future EU specifications. As a further core element of stability, Liechtenstein likewise plans to transpose the EU Bank Recovery and Resolution Directive (BRRD) into national law at an early stage. The work on the draft law began already in autumn The LBA and representatives of the three large banks have been included in workshops to draft the consultation report. Entry into force is expected in the first quarter of 2016 at the earliest. At the same time, the bankruptcy law for banks will be supplemented and modernised. With the introduction of the new stability law, the additional minimum requirements on equity and borrowed capital elements as preparatory measures for bail-in (conversion of borrowed capital into equity capital) and the financing of resolution funds will be especially important. At the same time, the LBA continued to work on further development of the deposit guarantee system in 2014, which must take account of the changes in international regulation as well as the circumstances in Liechtenstein. The EU Deposit Guarantee Scheme Directive entered into force in summer 2014 and must be implemented by the EU member states starting in July The core elements of the new directive are the mandatory advance funding of the liability reserves as well as a reduction of the repayment period from 20 to seven days. For the LBA as the competent EAS secretariat, the international memberships in EFDI and IADI and in particular the regular meetings with German-speaking deposit guarantee schemes serve as indispensable sources of information and as examples. As scheduled, the new Deposit Guarantee and Investor Compensation Foundation (EAS) took up its work on 1 April 2015 upon its entry in the Liechtenstein Commercial Register in the form of a protected cell company and as a combined guarantee scheme for deposits and investors for the entire financial centre. Since then, it has been able to offer its services to a wider range of financial service providers. Participation requires the conclusion of a separate participation contract with EAS. At the same time, EAS became autonomous in terms of finances and communication as the guarantee scheme in Liechtenstein. With the described measures, the LBA has again made a significant contribution to securing the stability of the entire financial centre for the long term and to promoting the confidence of depositors and investors in banks and other financial service providers European supervisory structures On 14 October 2014 at the ECOFIN meeting in Luxembourg after intensive discussions and thanks to a willingness to compromise on both sides the EU agreed with the EEA / EFTA countries on a solution for incorporating the regulations governing the European Supervisory Authorities. The solution is based on the two-pillar structure of the EEA Agreement. This creates the basis at the political level for a rapid incorporation of the pending EU legal acts in the area of financial services, thereby ensuring long-term access to the EU Single Market for financial service providers from the three EEA / EFTA countries of Norway, Iceland, and Liechtenstein Issue monitoring To simplify the management and monitoring of numerous developments and to make even better use of the available information, the Secretariat developed a concept for expanding its existing issue monitoring and used that concept to build a dedicated database. With the help of the database, it is possible to generate pre-defined reports automatically. This means that from now on, the Secretariat will be able to make an additional quarterly report available to the members and passive members of the LBA, presenting the most important developments, their essential core contents, the associated opportunities and risks, as well as the current status of relevant regulation Limitations in cross-border banking For the purpose of developing an overview of the limitations of Liechtenstein financial centre participants in the cross-border provision of services, the Government appointed a working group. The working group, which includes the LBA, adopted a report for the attention of the Ministry of General Government Affairs and Finance. The members of the working group were then given the opportunity to designate their priorities for eliminating the limitations. For this purpose, the Secretariat conducted an LBA-internal consultation and communicated the result to the Ministry in writing. The Ministry largely followed the LBA position and assigned the limitations to the competent authorities for the purpose of eliminating them SEPA End-Date The SEPA End-Date Regulation (Regulation (EU) No 260 / 2012) was incorporated into the EEA Agreement in The provisions have direct effect in Liechtenstein. Transposition into national law has thus not been necessary. The key provisions (reachability, 13

16 PROGRESS REPORT 2014 annual report 2014 IBAN, XML format) will enter into effect on 31 October 2016 for EEA countries that do not belong to the Eurozone. As part of the amendments to the Payment Services Act (PSA), only the mandatory implementing provisions (designation of the competent authority, definition of sanctions, and creation of out-of-court complaint and redress procedures) were enacted in national law. The LBA participated in detail in the consultations on amendments to the PSA. Apart from this, the Secretariat developed an action plan with the involvement of the SEPA End-Date working group to ensure timely compliance with the new requirements. To discuss open questions regarding implementation, the Secretariat organised a round table on 1 April 2015 with representatives of the Swiss Euro Clearing Bank, to which the members of the working group as well as the PSD contact persons were invited. Finally, the Secretariat together with the working group developed an overview of options regarding the reachability and provision of SEPA direct debits Information accompanying transfers of funds Based on the FATF recommendations to prevent money laundering and the financing of terrorism, Regulation (EC) No 1781 / 2006 on information on the payer accompanying transfers of funds provides that the complete information on the payer (name, address, and account number) must accompany the transfer. For transfers of funds within the EEA, the account number or a unique identifier is sufficient. On the basis of the revised FATF recommendations, the EU Commission has adopted a proposal for a successor regulation (proposal for a regulation on information on the payer accompanying transfers of funds), which will replace the above-mentioned regulation and has already effectively completed the EU legislative process. The Secretariat has submitted a special analysis to the EEA Coordination Unit regarding the successor regulation EMIR Since 2014, the EMIR working group has essentially been concerned with two questions of a supervisory nature: 1. Who is covered by the term undertaking and thus falls within the scope of application of EMIR when concluding derivative contracts? 2. Do all legal persons concluding derivative contracts require a Legal Entity Identifier (LEI) or only those considered undertakings? The Secretariat examined these questions with the Financial Market Authority (FMA) Liechtenstein, among others. In order to ensure compliance with the new requirements under EMIR even in the context of an asset management mandate, the core working group also prepared an EMIR annex to the asset management agreement. The Secretariat also kept the working group informed on an ongoing basis about current developments relating to EMIR in the EU. Several meetings of the core and full working group took place for this purpose Close-out netting Banks have to cover unsecured credit risks of derivatives with sufficient equity capital. For derivative portfolios for which netting is possible, the capital requirements are determined by net receivables rather than gross receivables ( close-out netting ). Due to the tighter capital requirements under CRD IV, the importance of closeout netting has increased. However, the banks must demonstrate in the form of a legal opinion that the close-out netting provisions contained in the master agreements are resistant to insolvency in the counterparty countries. For this purpose, the LBA organised a workshop on 21 October 2014 on the insolvency resistance of close-out netting provisions of the master agreement of the International Swaps and Derivatives Association (ISDA) in Liechtenstein, with the participation of the Financial Market Authority (FMA) Liechtenstein, selected Liechtenstein law firms, and bank representatives. The participants agreed that the legal situation in Liechtenstein permits close-out netting. Two meetings with the ISDA also took place in Liechtenstein and Zurich CSDR Regulation (EU) No 909 / 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98 / 26 / EC and 2014 / 65 / EU and Regulation (EU) No 236 / 2012 (CSDR) was published in the Official Journal of the EU on 23 July The regulation also governs the requirements that must be met by central securities depositories in third countries in order to provide core services for securities subject to the law of a member state. The essential requirements include that the EU Commission confirms the equivalence of the legal framework in the third country in question by way of an implementing decision and that the thirdcountry central securities depository submits an authorisation application directly to the European Securities and Markets Authority. Upon incorporation of the CSDR into the annex of the EEA Agreement, securities subject to Liechtenstein law will fall under these rules, because the securities are recorded in book-entry form by the central securities depository SIX SIS in Switzerland. The Secretariat was in close contact with SIX SIS as well as with representatives of the banks, the FMA, and the EEA Coordination 14

17 PROGRESS REPORT 2014 annual report 2014 Unit. The Secretariat also took this opportunity to submit an opinion to the EEA Coordination Unit and to prepare a Q&A Project to expand the list of predicate offences to include tax crimes Already in 2011, the Government appointed a working group to prepare implementation of the new FATF standards (2012), taking account of the Fourth EU Money Laundering Directive. The focus of the analysis was on new requirements and on possible practical consequences in the course of subsequent implementation. On this basis, the working group defined the legislative drafting parameters and indicated possible approaches to solving regulatory implementation. At the time, the working group summarised its findings in a report to the Government. This sub-working group was expan ded considerably in The LBA has participated actively in both working groups Revision of the Financial Intelligence Unit Act (FIU Act) At the regular meeting of the Compliance Expert Group on 26 June 2014, the representatives of the Financial Intelligence Unit (FIU) for the first time presented the planned amendments to the FIU Act. These amendments had become necessary especially to take account of the recommendations in the IMF report and to adjust existing law to the international standards. The focus of the chan ges is on the scope of responsibilities and powers of the FIU as well as cooperation of the reporting authority with other domestic and foreign authorities. The official consultation procedure began on 10 December 2014 and ran until 18 February Enquiries by correspondent banks regarding foreign currency transactions Correspondent banking is a standard service in global payment transactions. Due to the special nature of this service and the only limited availability of information on the background of a transaction, a correspondent bank is exposed to special money laundering risks. In addition to the FATF (recommendation 13, preventive measures), the EU has also enacted specific rules to improve measures against money laundering and terrorist financing in this area. But also national rules now impose higher demands on the due diligence of banks. Since 2001, for instance, the United States has further specified, expanded, and tightened the relevant provisions on several occasions. In autumn 2013, the Office of the Comptroller of the Currency published new far-reaching guidelines requiring third-party banks to clarify a wide range of aspects in an ongoing risk process. Ultimately, it must be evaluated whether the thirdparty bank complies with US and international requirements. In order to respond adequately to the developments at the international level, the Executive Board in its meeting of 12 March 2014 adopted a new LBA recommendation indicating measures in this area Regulatory projects concerning the Liechtenstein fund centre In autumn 2013, the steering committee of the Liechtenstein Fund Centre Project mandated a project group to examine in detail and promote the creation of a national special fund law. The LBA joined this project group with three experts from member banks. In several working meetings, a first draft law was prepared, which was then evaluated by external experts from the perspective of European law. The draft was then revised in the light of the comments of these experts. Moreover, adjustments to the UCITS Act were made, most of which were connected with the incorporation of the UCITS V Directive. Adjustments to the AIFM Act were likewise necessary due to developments in EU law Launch of the project to implement the MiFID II Directive After the adoption of the MiFID II Directive by the European Parliament, the Government mandated the Financial Market Authority (FMA) Liechtenstein to draft a proposal for a project structure to implement the directive at the national level. The project structure envisages the appointment of a steering committee and subordinate project groups. Furthermore, workshops are to be held with representatives of practice in order to define the parameters for implementation and thus prepare the implementation work. In parallel, the Secretariat reactivated the LBA-internal core working group, which had already been established to implement the predecessor directive (MiFID I Directive). The representatives of this working group took part in a first workshop hosted by the FMA to implement the MiFID II Directive on 28 August Subsequently, the FMA recruited an external expert and used the defined implementation parameters as a basis for developing a GAP analysis and a draft law ICMA Private Banking Charter of Quality On 4 October 2012, the International Capital Market Association (ICMA) published a quality charter for private wealth management. The quality charter is the first initiative of this kind, in which the wealth management sector has come together to voluntarily commit itself to internationally recognised standards governing integrity, transparency, and professionalism. The LBA signed the charter on 15

18 PROGRESS REPORT 2014 annual report December 2012 on behalf of and in the name of all of its member banks. With the LBA s signature, the Liechtenstein banking centre has committed itself to complying with the highest international standards of quality and professionalism. After the Private Banking Group Luxembourg (PBGL) of the Luxembourg Bankers Association (ABBL), the LBA was the second association committing to compliance with the ICMA standards. Since then, the LBA has participated actively in the Private Banking Group of the ICMA and uses the principles enshrined in the charter as a basis for its actions. The tax compliance guideline amended in January 2015, for instance, is based in part on the ICMA quality charter LBA English language training Another round of Cambridge certificate courses at all levels was offered in spring For the first time, a Business Communication course was also offered in two classes, emphasising oral communication starting at the FCE (First Certificate in English) language level. The course participants in the BEC Vantage intensive course already successfully completed their examinations at the end of 2014; the other classes (up to BEC Higher) likewise were completed in spring / summer 2015 with a gratifying success rate of 83 %. The English Working Group again focused primarily on quality management in 2014 and continuously assessed it in close cooperation with the language service provider forumb. For this purpose, the course evaluations of the participants and the progress reports of the teachers were examined and used to derive appropriate measures. 2.3 General regulatory environment The regulatory environment in 2014 was characterised by numerous legislative projects with an immediate impact on the financial centre. Compared with the previous year, the volume of regulation grew even further. At the national level, the LBA participated in a total of 22 consultations in These included forward-looking legislative projects such as the amendments to the Banking Act and Banking Ordinance in connection with the national implementation of the CRD IV Directive, the FATCA implementation act, the preparations for expanding the list of predicate offences for money laundering to include serious tax crimes, the amendments to the TIEA Act (introduction of confidential proceedings relating to the exchange of tax information), and the creation of a special fund law for Liechtenstein. Again in 2014, the EU increasingly made use of Level 2 measures (delegated regulations, implementing regulations, and implementing decisions), which are also known as regulatory technical standards. These define in detail how competent authorities and financial market participants must satisfy the requirements set out in the uniform rules. Additionally, there has also been a trend toward regulation via soft laws (recommendations, guidelines, opinions, and Q&As) of the European Supervisory Authorities. As a consequence, several internal consultations on guidelines of European Supervisory Authorities (EBA, ESMA) were again conducted in 2014, including in relation to UCITS, CRD IV, and BRRD. The resulting comments were forwarded to the FMA. In the context of these implementation projects, the LBA again made a proactive and engaged contribution. 2.4 Staff and staff development Staff During the reporting year, the Staff Committee discussed numerous topics, including in particular the issue of a day care centre for Liechtenstein banks, which had already been taken up at the end of At a meeting of the Executive Board in August 2014, the topic was for the first time presented to the Executive Board and, after a positive decision in principle, a Bank-Day Care (BAKITA) project group was appointed. The project group is composed of bank representatives and an external project leadership. The Staff Committee is closely accompanying this project and has included it on its regular agenda. Where needed, (steering) decisions are also taken in the Staff Committee. In addition to the standard agenda items (restructuring, implementation of the compensation policy, and labour law issues), on which opinions and information were regularly exchanged, the Staff Committee also discussed the following issues: work time recording (Liechtenstein / Switzerland), sick pay / wage continuation, certification in private banking, quotas for boards and executive managements (CRD IV Directive), etc. After the decision by the Staff Committee to reduce the frequency of the HR event from annual to biennial (alternating with the Bank Day), but to expand its scope somewhat, no event was held in The Staff Committee submitted an opinion in the reporting year regarding the Government s consultation report on amendment of the Health Insurance Act (HIA) and other laws. The reporting year came to an end with the resignation of Karl Walch, who retired from VP Bank at the end of The LBA would like to take this opportunity to thank Karl Walch for his many years of service on the Staff Committee. 16

19 PROGRESS REPORT 2014 annual report Staff development Adequate advancement of young talent is an important aspect for banks seeking to secure their competitiveness. One of the key objectives must be to ensure the desired level of basic and continuing training of young talent in both qualitative and quantitative terms, but also to facilitate access to the extensive offerings of supplementary training in banking and finance available to bank employees. This is one of the goals of the Staff Development Committee. For this purpose, the Staff Development Committee again cultivated, intensified, and expanded contacts with numerous important training providers in In October, the banks represented on the committee together with the Secretariat introduced themselves at the HSG Banking Days for the second year in a row. The event entitled Liechtenstein an innovative banking and financial centre and attractive workplace was again a great success. Among the areas involving cooperation with the Training Commission of the SBA and the current developments in the training area of banking and finance, the focus of the Staff Development Committee in 2014 was again on the topic of certification of bank employees, since 2012 with an emphasis on the Federal Financial Services Act (FFSA) and any resulting consequences for the basic and continuing training of bank employees. The Staff Development Committee is aware that the developments in Switzerland will have a major impact on banks and bank employees in Liechtenstein. After a comprehensive status assessment of the ongoing and foreseeable developments and discussions relating to the training system in banking and finance, it became clear also to the Staff Development Committee that the existing training offerings are becoming increasingly heterogeneous and that bank-internal training is becoming ever more important. For this reason, the Training Commission of the Swiss Bankers Association decided to replace the old recommendation system with an orientation framework that presents the existing training offerings broken down by typical client segments. Other priority areas of the committee arose from various projects, especially the (further) development of training structures and offerings as well as promotion of general knowledge among the public in the field of finance. Since 2011 partially in cooperation with other partners in the financial centre numerous offerings for various age and target groups have been developed. So far, various activities have been conducted in schools with more than 600 children and young people in Liechtenstein. The thoroughly positive response and the coverage in the media both in Liechtenstein and abroad confirmed the intention of the Secretariat to conceive and carry out a project for adults entitled All About Money in cooperation with the CYP. In three modules, the macroeconomic context and individual investment decisions as well as the opportunities and risks of financial products were discussed. The Basic Training Working Group again dealt with the topic of quality assurance in basic training during the reporting period. The workshops for practical trainers at Liechtenstein banks were for the last time in 2014 dedicated to the commercial reform of basic training. The long-term availability of motivated and high-performing young talent is an ongoing challenge confronted by the working group. It examines possible measures in this regard and implements them where possible. Due to the reforms in the financial centre, the training requirements for commercial education and for IT apprenticeships has risen strongly in recent years. The expectations of the businesses and schools in regard to professional, social, and methodological competence are also considerably higher than they used to be. The high ratio of Liechtenstein students graduating from academic secondary school also means that many high-performing students are not available for recruitment by the banks. The skills of young people are continuously changing, as they always have. It continues to be a challenge to address changes in a differentiated manner and to utilise them as opportunities whenever possible. Under the title Banking 4 you, the interactive and age-appropriate instruction modules developed in 2011 on the topics of banking, job applications, and job training were already successfully conducted for the fourth time at all middle-track secondary schools in Liechtenstein and also at the academic secondary school. The direct contact with teachers and students is appreciated by both sides and helps shape good and direct relationships even beyond the job application process. In the first quarter of 2014, an updated edition of the brochure The first step into the banking business was also printed. Networking, which is also important in the area of basic training, can be ensured through the membership of representatives of the Secretariat and the banks in various external bodies and commissions (Professional School Commission, Vocational Training Advisory Council, Round Table of the Office of Education, Agency for International Education Affairs, International Lake Constance Conference, etc.). The project Attractive dual professional education in Liechtenstein is being accompanied and supported by the working group. The decision made in 2013 in favour of a joint apprenticeship hiring deadline was evaluated and confirmed by various associations. 17

20 PROGRESS REPORT 2014 annual report LIFE Climate Foundation Liechtenstein (LIFE) The LIFE Climate Foundation Liechtenstein (LIFE) was established in 2009 as a private-public partnership by the Government, the LBA, the Liechtenstein Institute of Professional Trustees and Fiduciaries, the Liechtenstein Investment Fund Association, and the University of Liechtenstein. LIFE is a registered commonbenefit Liechtenstein foundation under the supervision of the Foundation Supervisory Authority. PricewaterhouseCoopers serves as the auditor. The LBA has always provided the secretariat of LIFE. The goal and purpose of LIFE is to foster the idea of sustainability, to promote knowledge transfer to the sponsors and the public, and in that way to give the country and the financial centre new impulses. At the end of 2010, LIFE defined a sustainable, future-oriented, and long-term three-pillar strategy. LIFE began implementing this strategy in These activities were continued successfully in LIFE again benefited from cooperation with the Swiss Climate Foundation in Thanks to the willingness of LGT Bank, the LLB, and VP Bank to donate their rebates from the CO2 tax to the Swiss Climate Foundation, the funding measures of the Swiss foundation were expanded to include Liechtenstein at the end of In this connection, the secretariat of LIFE is responsible for communicating funding possibilities in Liechtenstein. Since the beginning of the cooperation, about CHF 370,000 has been awarded to innovative and energy-efficient small and medium-size enterprises. In addition to funding by the Swiss Climate Foundation, projects from Liechtenstein were again funded directly by LIFE in The total funding amount in 2014 increased from about CHF 30,000 (2013) to more than CHF 55,000. The highlight was the visit to Liechtenstein by a US delegation on 2 and 3 September 2014 in advance of the 2nd Biomimicry Europe Innovation and Finance Summit in Zurich. In addition to a presentation of the FLUIDGLASS and IT-enabled Sustainability Transformations projects at the University of Liechtenstein, there was also an exchange of views with representatives of the Liechtenstein Chamber of Commerce and Industry (LCCI), representatives of the banking centre, and the Location Promotion Bureau of the Office of Economic Affairs. The programme was rounded off by a visit to the tool manufacturer Hilti. 2.6 Microfinance Initiative Liechtenstein (MIL) The Microfinance Initiative Liechtenstein (MIL) was established in The initiators of the initiative were the Government, the University of Liechtenstein, the LBA, Hilti Foundation, and Medicor Foundation. Based on the three pillars of research, investment, and technical assistance, the MIL was driven by a working group formed by the initiators, with the goal of actively promoting microfinancing through applied research, development cooperation, and innovative products in the investment field. Until spring 2011, the MIL was administered by the Liechtenstein Development Service (LED). In 2009, the initiators founded the Microfinance Association. In the first five years of its existence, the MIL established itself successfully internationally and in external perception as a brand, and thus also had a positive impact on the perception of Liechtenstein. Innovative research ideas aroused interest in particular. With the realisation of the first microfinance fund in Liechtenstein, the MIL achieved a further goal of the original initiative. As part of a comprehensive strategy discussion in 2011, the members of the MIL decided to implement a professionalisation of the MIL, with the clear goal of continuing to position the MIL also for the long-term and together with the LIFE Climate Foundation Liechtenstein as active partners for sustainability issues. In terms of structure, a new board was constituted for this purpose, composed of Foreign Minister Aurelia Frick (Chair), Adolf E. Real (LBA and Vice-Chair), and Karlheinz Ospelt (Liechtenstein Development Service Foundation). The CSSP (Center for Social and Sustainable Products AG) was appointed to administer the secretariat. The MIL works closely together with LIFE. Together, both initiatives are intended to credibly position the Liechtenstein location as a competence centre for sustainabi lity and sustainable investments. In 2013, the cornerstone was laid for promoting energy-efficient ovens in Rwanda as a joint project of the MIL, the LIFE Climate Foundation Liechtenstein, and the Liechtenstein Development Service. This project was realised in Moreover, the MIL and LIFE have meanwhile held the annual Impact Forum in Zurich together with the LGT Venture Philanthropy Foundation for the past three years. The topic of the third event in 2014 was Interim balance Sustainable investments in the Swiss financial centre. As in the previous years, the forum again met with a great response and was already booked out weeks in advance this time. More than 60 institutions from Switzerland and Liechtenstein registered for the event in order to discuss various aspects, challenges, and trends of sustainable investments and to exchange experiences. 18

21 PROGRESS REPORT 2014 annual report Consultations (Overview: 1 May April 2015) Consultation report of the Government concerning amendment of the TIEA Act (group requests) Consultation report of the Government concerning amendment of the Occupational Pensions Act and the Disability Insurance Act Consultation on FMA Guideline 2015 / xx concerning the Code of Conduct for the Liechtenstein fund centre Consultation report of the Government concerning amendment of the Criminal Code and the Law on the Acquisition and Loss of Liechtenstein Citizenship (counterterrorism) Consultation report of the Government concerning amendment of the Law on Certain Undertakings for Collective Investment in Transferable Securities (UCITS Act) and the Financial Market Authority Act (FMA Act) Consultation report of the Government concerning amendment of the Law on the Financial Intelligence Unit (FIU Act) and other laws Amendment of the Banking Ordinance within the framework of transposition of the CRD IV Directive into Liechtenstein law Consultation of the Government concerning amendment of the Criminal Code, the Code of Criminal Procedure, the Tax Act, the Law of 22 October 1922 against Unfair Competition, the Mutual Legal Assistance Act, and other laws (criminal law on corruption) Consultation report of the Government concerning amendment of the Law on Health Insurance (Health Insurance Act) Consultation report of the Government concerning the FATCA Act Consultation of the FMA Guideline on auditing and reporting by external auditors pursuant to special legislation Audit Guideline Consultation report of the Government concerning amendment of the Market Abuse Act (MAA) Consultation report of the Government concerning amendment of the Law on Persons and Companies (transposition of Directive 2013 / 34 / EU on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings) Consultation report of the Government concerning amendment of the Payment Services Act (PSA) 4. Outlook for 2015 / 2016 Especially in uncertain times, clients seek economic and political stability, which is one of the major advantages of the Liechtenstein location. Liechtenstein s membership in the EEA and its concurrent inclusion in the Swiss economic and currency area have proven to be a model for success. Nevertheless, the global regulatory efforts and further internationalisation are continuing to put financial centres under pressure. Again in 2015 and 2016, the effects of the financial, government, and budget crisis will continue to reverberate. Also, the discussions concerning cooperation in tax matters and the global trend toward more transparency will continue: In the meantime, more than 100 countries have committed to introducing automatic exchange of information. As one of the early adopter countries, Liechtenstein will already automatically exchange tax information in 2017 in regard to the 2016 tax year. An agreement with the EU to this effect will be signed and ratified in Liechtenstein will thus be one of the first countries implementing automatic exchange of information. It will be all the more important for the OECD standard to become an effective global standard and for a level playing field to be created as quickly as possible. The question of data protection and data security will also play a crucial role in light of the volume of client information to be exchanged. Until the transition to automatic exchange of information is complete, not only clients will have to be prepared for the new era of transparency, and the relevant IT systems will have to be established and expanded at both financial intermediaries and tax authorities. The fact is that a veritable flood of data must be expected; the German Tax Assessors Union, for example, has already pointed out this challenge. The goal over the coming months will therefore also be to safeguard the correct use of client financial information and to protect it from access by unauthorised parties before automatic exchange is carried out for the first time. At the same time or especially as a consequence of the international upheavals, the transformation phase which the Liechtenstein financial centre is undergoing will continue. This transformation process is especially challenging and demanding for everyone against the backdrop of the economic situation, the persistent pressure on margins and costs, the persistent phase of low or even negative interest rates, and the increasing glut of regulations / 2016 will be one of the most important periods for the Liechtenstein financial centre, during which the existing basis for the future must be further expanded and strengthened. Innovation especially is called for. Recent trends, topics, and regulations such as FINTECH, the efforts toward a uniform Digital Single Market throughout the EU, Big Data and Smart Data, the Capital Markets Union, and so on, must be approached 19

22 PROGRESS REPORT 2014 annual report 2014 proactively and their opportunities and risks assessed. With its Roadmap 2015 financial centre strategy, the LBA has shown what must be accomplished and where the path should lead in order to continue to succeed as an attractive and competitive financial centre for the long term. This strategic orientation will be further developed over the coming months as part of a Roadmap This Roadmap 2020 will have to include: a consistent and credible further pursuit of the tax compliance strategy, maintenance and permanent assurance of a balanced government budget, strengthening of the stable and legally secure framework for action, continued adjustment of systems and processes, consistent cost management at all levels, maintenance of unhindered access to the EEA Single Market, stronger basic and continuing training in all areas, and further intensification of advice and care of clients. Beyond this, further international networking, strengthening of the stability factors of our location, innovations, and not least of all also communication and marketing of the financial centre are important. As part of this, the LBA has accordingly also made certain adjustments relating to public outreach. In 2015 / 2016, the LBA wants to further position itself as an innovative, dynamic, and competent conversation partner that raises awareness about the location factors and developments in the financial centre, presenting the full diversity of the financial centre and advertising its attractiveness. Marketing activities (road shows, lectures, panel discussions, etc.) will be further intensified. Within Liechtenstein, the LBA wants to continue to present itself as an expert on financial centre issues, both in the media but also at the political level and within the financial centre. Raising awareness in the neighbouring countries of Switzerland, Germany, and Austria continues to enjoy a high priority and will continue to focus on political and media representatives. Contact will be strengthened with stakeholders and opinion leaders, who in term help shape the image of Liechtenstein in the media and / or politics as well as among relevant groups and the public. In Liechtenstein itself, political work and contact with the Government, the authorities, and members of Parliament play a central role. They are to be approached early on and introduced to the association as a reliable and important conversation partner, expert, and information source. Beyond this, the existing contacts with important international organisations such as the OECD and FATF as well as the EEA / EFTA partner countries will continue to be nourished. In Brussels, cultivation of relationships and raising of awareness will be further intensified at the EU level. 20

23 LEGISLATIVE AND REGULATORY CHANGES annual report 2014 Legislative and regulatory changes The past year was characterised by extensive legislative projects serving to implement various new requirements of the EU as well as international bodies and organisations. The following financial market laws or other laws relevant to banks in Liechtenstein were partially revised or were adjusted in 2014 (according to the date of entry into force): Pursuant to the Law of 10 December 2008 on the Enforcement of International Sanctions (International Sanctions Act), several ordinances again had to be enacted or amended during the 2014 reporting period leading to restrictions or measures vis-à-vis individual countries, persons, or groups. Law on Administrative Assistance in Tax Matters, TIEA Act (see LGBl No. 6) Law on Administrative Assistance in Tax Matters with the United States of America, US TIEA Act (see LGBl No. 46) Tax Act (see LGBl No. 344) Law on Unemployment Insurance and Insolvency Compensation (LGBl No. 275) Law on Persons and Companies, PGR (see LGBl No. 362) General Civil Code, ABGB (see LGBl No. 97) Law on the Agreement between Liechtenstein and Austria governing Tax Cooperation, Final Withholding Tax Agreement (see LGBl No. 434) Financial Market Authority Act, FMA Act (LGBl No. 324, 420, 429, 434) 21

24 THE LIECHTENSTEIN BANKING SECTOR 2014 annual report 2014 The Liechtenstein Banking Sector 2014 The assessment of global developments important for the international clientele of Liechtenstein banks is becoming increasingly demanding, because it lacks uniformity and is driven by the geopolitical situation. Even international organisations such as the IMF have had to reduce their global growth forecasts several times. The economic indicators of advanced economies are showing a positive development, although certainly the dramatic drop in the price of oil and the expansive monetary policy of the central banks have been significant pillars. The further development of important currencies such as the USD, EUR, and CHF has to be examined in a differentiated way. The existing situation for Liechtenstein banks became more pronounced in the 2014 business year. One core challenge for Liechtenstein banks continues to be the historically low interest rate environment and central bank policy in general. In January 2015, the Swiss National Bank abandoned the minimum exchange rate for the euro and also introduced a negative interest rate of % on SNB current account balances. At the same time, margins are being put under additional pressure due to increasing competition and especially due to regulatory measures in the field of consumer and investor protection as well as risk management. Despite the persistently low interest rate level, net interest income was stable at CHF 308 million (+1.2 %). Income from commission business and services in the amount of CHF 426 million remained at the previous year s level, despite positive stock market development. This is due especially to restraint exercised by clients. With a decline in income from financial transactions and an increase in business expenses by about 4.1 % to CHF 612 million, the gross profit was CHF 341 million (-9.6 %). The cost-income ratio increased accordingly to 64.2 % (previous year: 60.9 %) and is due especially to the unfavourable development of interest rate hedges. Due to a negative one-off effect in connection with the planned merger of two member banks, the result from ordinary business activity fell by more than 17 % to CHF 219 million. Without this one-off effect, the result in relation to gross profit would be comparable with the previous year. The net profit of all banks was Facts & Figures (non-consolidated) Change in % Balance sheet total (in million CHF) 63,354 57, Annual profits (in million CHF) Own funds (in million CHF) 5,734 5, Tier 1 Ratio (consolidated, in %) Client assets under management (in billion CHF) Staff (full-time equivalents) 1,927 1,

25 THE LIECHTENSTEIN BANKING SECTOR 2014 annual report 2014 Facts & Figures Annual profit Development 2000 to 2014, in million CHF Client assets under management Development 2000 to 2014, in billion CHF CHF 580 million, significantly higher than in the previous year (+23.3 %), but is also due to the net release of provisions for general banking risks. As in the previous years, banks were able to expand their posi tion both in Liechtenstein and on a consolidated basis, i.e., including the activities of the banks abroad, and increase assets under management. Assets under management in Liechtenstein grew by about 6.3 % to CHF billion. Gratifyingly, net new money rose by 40 % to CHF 2.8 billion (previous year: CHF 2.0 billion), even though outflows had to be expected due to various tax compliance measures. Consolidated net new money was CHF 16.1 billion, twice as high as in the previous year. This means Liechtenstein banks manage assets with a volume of CHF billion (+10.5 %) worldwide. The record from 2007 was thus broken for the first time. This once again underscores the attractiveness and stability of the Liechtenstein banking centre as well as the trust placed in Liechtenstein banks worldwide. Despite the decline of the consolidated core capital (Tier 1) ratio by 20.6 % to 18.6 %, Liechtenstein banking groups enjoy excellent capitalisation and already meet the minimum requirements of the Basel III standard and the EU rules, which entered into effect at the beginning of February This means Liechtenstein continues to be one of the banking centres with the highest capitalisation worldwide evidence of its farsighted risk policy and stability. This is confirmed by regular peer reviews. Liechtenstein s AAA rating was reaffirmed in 2015 again. Additionally, Standard & Poor s examines the Liechtenstein banking sector as part of its Banking Industry Country Risk Assessment (BICRA). Liechtenstein continues to be assigned to Group 2, thus belonging to the group with the lowest industry-specific risk along with Switzerland, Austria, Luxembourg, Hong Kong, and Singapore. Liechtenstein banks continue to be competitive in a very demanding and uncertain environment. They are valued worldwide as trustworthy partners. The financial centre strategy as well as stability factors offered by Liechtenstein and its banks are essential elements for client selection, especially now. The business figures underscore that market participants in the Liechtenstein banking centre are actively undertaking sensible structural adjustments and ongoing operational improvement in conjunction with a necessary focus on their core competences. This allows them to face future challenges from a position of strength. Together with their specialisation in the traditional business areas of private banking and wealth management as well as prudent business policy supported by solid and high-quality capital resources and liquidity, Liechtenstein banks will continue to strengthen their competitive position and expand it in a targeted manner. 23

26 THE MEMBER BANKS annual report 2014 Liechtensteinische Landesbank AG Profile The Liechtensteinische Landesbank AG (LLB) was founded in 1861 and is the financial institution with the richest tradition in the Principality of Liechtenstein. Since the partial privatisation of the LLB in 1993, its shares have been listed on the SIX Swiss Exchange (symbol: LLB). The State of Liechtenstein is the main shareholder. As of the end of 2014, the State of Liechtenstein holds 57.5 % of the bank s shares. The LLB is the parent bank of the LLB Group, which offers its clients comprehensive services: in Retail & Corporate Banking, in Private Banking, and for Institutional Clients. It does this in the onshore home markets of Liechtenstein, Switzerland, and Austria, the traditional cross-border markets of Germany and Austria, and the growth markets of Central and Eastern Europe as well as the Middle East. The LLB Group had 893 employees (full-time equivalents) as of the end of 2014, 552 of which in Liechtenstein. As of 31 December 2014, the LLB Group s business volume was CHF 60.9 billion was the year for further development of the LLB Group s strategic initiatives. The LLB Group consistently pursued its Focus2015 strategy and reached important milestones. It was able to further increase profitability but also make targeted investments in innovations. Stable operating earnings, successful efficiency gains, inflows of new money in growth markets, and pioneering solutions for clients make the LLB Group a strong partner. Facts & Figures (parent company) in million CHF Balance sheet total 14,452.2 Annual profit 76.4 Equity capital (after appropriation of profit) 1,663.9 Assets under management * 50,218.0 Staff (adjusted for part-time positions) 502 * consolidated Organisation (parent company) Board of Directors Dr. Hans-Werner Gassner, Chairman lic. oec. publ. Markus Foser, Vice-Chairman Markus Büchel Dr. Patrizia Holenstein Urs Leinhäuser Prof. Dr. Gabriela Nagel-Jungo Roland Oehri Board of Management Auditor PR contact Roland Matt, Group CEO lic. iur. Urs Müller, Deputy Group CEO Dr. Gabriel Brenna Dr. Heinz Knecht Dr. Kurt Mäder Christoph Reich PricewaterhouseCoopers AG, St. Gallen Dr. Cyrill Sele 24

27 THE MEMBER BANKS annual report 2014 LGT Bank Ltd. Profile LGT Bank is a leading address worldwide in private banking. It combines investment advisory services, asset management and financing solutions with a wide range of additional advisory services. On the international level the bank has branch offices in Hong Kong, Salzburg and Vienna as well as representative offices in Bahrain, Chur, Davos, Geneva, Lugano, Montevideo and Zurich. For the region Liechtenstein Rhine Valley Vorarlberg, the bank headquartered in Vaduz also provides comprehensive services as a universal bank. LGT Bank forms the core of LGT Group. Thus, clients can benefit from the capabilities of the largest Private Banking and Asset Management group in the world that is wholly-owned by an entrepreneurial family. The Princely House of Liechtenstein has personally owned and managed LGT for over 80 years. This special ownership structure guarantees important advantages such as stability, reliability, and independence. Facts & Figures (parent company) in million CHF Balance sheet total 30,692.7 Annual profit Equity capital (after appropriation of profit) 2,616.2 Assets under management 61,268.1 Staff (adjusted for part-time positions) 771 Organisation (parent company) Board of Directors Thomas Piske, Chairman H.S.H. Prince Max von und zu Liechtenstein Olivier de Perregaux Jacques Engeli Executive Board Norbert Biedermann, CEO Ivo Klein Roland Schubert Markus Werner Auditor PricewaterhouseCoopers AG, Zurich PR contact Christof Buri 25

28 THE MEMBER BANKS annual report 2014 VP Bank AG Profile VP Bank AG was formed in 1956 and, with its 755 employees as at the end of 2014 (adjusted for part-time positions 694.9), ranks among the largest banks in Liechtenstein. It offers tailored asset management and investment advisory services for private persons and intermediaries. In addition to its head offices in Liechtenstein, VP Bank Group includes companies with a banking licence in Switzerland, Luxembourg, the British Virgin Islands and Singapore, an asset management company in Hong Kong and representative offices in Moscow and Hong Kong. The first-class services for private and professional clients include every aspect of asset management and investment advice. Thanks to a culture of open architecture, clients benefit from the independent and personal advice of a private bank while receiving access to a global network of specialists: Advice includes both products and services of leading financial institutions as well as the bank s own investment solutions. The financial strength of VP Bank is rated A- by Standard & Poor s. VP Bank is listed on SIX Swiss Exchange, and it has a solid balance sheet and capital adequacy. Its anchor shareholders are committed to long-term strategies, thereby assuring continuity, independence, and sustainability. Facts & Figures (parent company) in million CHF Balance sheet total 9,315.6 Annual profit 20.8 Equity capital (before appropriation of profit) Assets under management * 30,939.1 Staff 472 * consolidated Organisation (parent company) Board of Directors Fredy Vogt, Chairman Dr. iur. Guido Meier, Vice-Chairman lic. oec. Markus Thomas Hilti Dr. iur. Daniel H. Sigg Prof. Dr. Teodoro D. Cocca Dr. Beat Graf Michael Riesen Dr. Florian Marxer (from ) Executive Alfred W. Moeckli, CEO Management Siegbert Näscher, CFO Christoph Mauchle Auditors Ernst & Young AG, Bern PR contact Tanja Muster 26

29 THE MEMBER BANKS annual report 2014 NEUE BANK AG Profile NEUE BANK AG, founded in 1992, stands in the tradition of a classic private bank. The focus of its activities is on discerning private clients from Liechtenstein and abroad. In addition to the legally enshrined protection of privacy, NEUE BANK AG offers its clients comprehensive investment advisory services and asset management according to the highest quality standards. In accordance with the bank s motto, NEUE BANK AG is committed to a conservative and markedly risk-aware investment policy. It attaches equal importance to preservation of capital and to appropriate performance of the assets entrusted to it. To provide client services that are independent and free from conflicts of interests, NEUE BANK AG does not develop its own products. Instead, it makes investment decisions according to client needs, also taking into account the wide range of modern financial instruments. The desire to avoid potential conflicts of interest is one reason why the bank does not engage in company formation and fiduciary business. The character of a private bank, which entails refraining from mass business, and NEUE BANK AG s deliberately chosen independence are also reflected in the shareholders of the bank, who are predominantly private individuals and mostly Liechtenstein citizens. The fully paid-up share capital of currently CHF 40 million is under the control of the founding shareholders. Facts & Figures in million CHF Balance sheet total 1,309.8 Annual profit 6.7 Equity capital (after appropriation of profit) Assets under management 4,615.5 Staff (adjusted for part-time positions) 55 Organisation Board of Directors lic.oec. Karlheinz Ospelt, Chairman Josef Quaderer, Vice-Chairman Prof. Dr. Manuel Ammann Arthur Bolliger Hanni Bubendorfer-Kaiser Executive Elmar Bürzle Management Willy Bürzle Arnold Wille Pietro Leone Auditor KPMG AG, Zurich PR contact Doris Zurflüh 27

30 THE MEMBER BANKS annual report 2014 Volksbank AG Profile In 1997, Volksbank AG took up activities in Liechtenstein with a focus on private banking and has developed into a classic universal bank over the last six years. Its product spectrum ranges from upmarket advisory services and private banking to custodian services and retail banking, including mortgages and Lombard loans. As an autonomous partner of the Volksbankenverbund (association of commercial credit cooperatives), Volksbank AG offers a high level of quality and security within an international network of relationships. With Berenberg Bank in Hamburg and Zurich as its cooperation partner in the field of upmarket asset management, Volksbank AG offers an exceptional combination of first-class services in banking and asset management. Various international awards are the proof of our excellent quality of our advisory services. In 2014, Volksbank once again received the highest rating, summa cum laude, from the internationally renowned Elite Report and thus continues to be one of the elite wealth managers. The high level of quality assurance and the outstanding quality of advice and service were especially emphasised. Facts & Figures in million CHF Balance sheet total Annual profit 4.2 Equity capital (after appropriation of profit) 43.7 Assets under management 1,828.1 Staff (adjusted for part-time positions) 33.1 Organisation Board of Directors Gerhard Hamel, Chairman Dr. Reto Mengiardi, Vice-Chairman Dr. Roland Müller Dr. Helmut Winkler Markus Keel Company Stefan Wolf Management Josef Werle Dr. Marco Nigsch Auditor PricewaterhouseCoopers AG, St. Gallen PR contact Josef Werle 28

31 THE MEMBER BANKS annual report 2014 Valartis Bank (Liechtenstein) AG Profile Long-term corporate policy the crucial success factors: The institute follows an index-oriented investment policy for client assets. This established strategy should also be maintained in the future. The Executive Board of the bank is convinced that securing longterm corporate success is only possible with the aid of a broad international client portfolio. A major success factor is the close relationship between the employees and the employer. 32 employees hold 30 % of the shares in the company, and this results in entrepreneurial and sustained action. Further success factors of the Valartis Bank (Liechtenstein) AG are the foreign language skills and the family roots in each client region. The existing desks (German, Italian, English, Russian, Czech, Polish, Turkish, Arabic, Mandarin, Serbian, Croatian, Slovenian, Hungarian) enable efficient market access and are, from the bank s point of view, a precondition for fulfilling the mandatory due diligence requirements. Valartis Fund Management (Liechtenstein) AG is a subsidiary (100 %) and specializes in the flotation and administration of individually tailored investment funds. Private label funds are attractive instruments for international corporate investment in terms of inheritance, gifts and administration. The company is becoming increasingly important each year and makes a noticeable contribution to assets under management and after-tax profit. Facts & Figures in million CHF Balance sheet total 1,997.3 Annual profit 17.1 Equity capital (after appropriation of profit) 53.6 Assets under management 3,945.1 Staff (adjusted for part-time positions) 83.5 Organisation Board of Directors Urs Maurer-Lambrou, Chairman Dr. Erek Nuener, Vice-Chairman Rolf Müller Christoph N. Meister Univ.-Prof. Dr. Martin Wenz Management Dr. Andreas Insam, CEO Board Dr. Gerhard Lackinger Auditor Ernst & Young AG, Zurich PR contact Dr. Andreas Insam 29

32 THE MEMBER BANKS annual report 2014 Banque Havilland (Liechtenstein) AG Profile Banque Havilland (Liechtenstein) AG, with its registered office in Vaduz, became part of the group through the acquisition on 30 September 2014 of the majority stake by Banque Havilland S.A., headquartered in the Grand Duchy of Luxembourg. Founded in 2009 by the Rowland family, Banque Havilland has developed into an international private banking group over the past years, specialising in very wealthy individuals and their families, companies, and funds. Banque Havilland emerged from the family s desire to create a private bank that they would like to bank with themselves. With Banque Havilland, a strong new private bank with a focus on Private Banking was established that provides safety and reliability for its clients and business partners when structuring and managing their wealth. The bank also offers custody services for investment funds. In addition to Luxembourg and Liechtenstein, Banque Havilland Group also has representations in London, Monaco, Nassau, Dubai, and Moscow. Facts & Figures Organisation in million CHF Balance sheet total Annual profit -2.8 Equity capital (after appropriation of profit) 45.3 Assets under management 1,015.6 Staff (adjusted for part-time positions) 24 Board of Directors Graham Robeson, Chairman (from ) Alain Bruno Lévy, Chairman (until ) Harley Rowland, Vice-Chairman (from ) Gerhard Auer, Vice-Chairman (until ) Peter Lang, Member (from until ) Laurence Rose, Member (from ) Edio Delcò, Member (until ) Management Peter Lang, CEO (from ) Board Robert Rastner, CEO (until ) Zorica Lipovac, COO (from ) Manuel Fischer, CFO (until ) Auditor PricewaterhouseCoopers AG, Zurich PR contact Margit Maria Geismayr 30

33 THE MEMBER BANKS annual report 2014 Bank Frick & Co. AG Profile Helping to design a secure future is one of the most valuable tasks there is. This is the guiding principle that shapes decision-making processes at Bank Frick. In addition to classic wealth management, Bank Frick develops and manages investments in selected real estate (Germany, Switzerland, the UK, and Liechtenstein). The investments are realised together with constant payment flows and / or potential capital gains Bank Frick is committed to real-value investments. For quite some time now, Bank Frick has also been successfully represented in London. The bank has developed and launched a new mainstay in its credit card business, namely Acquiring Services, thereby opening up new and attractive business opportunities. With an extensive portfolio of sponsoring and social engagements, including sports and culture as well as social causes, and in line with its corporate culture, Bank Frick pursues long-term and sustainable goals. Facts & Figures in million CHF Balance sheet total 1,603.4 Annual profit 2.5 Equity capital (before appropriation of profit) 78.8 Assets under management 2,621.0 Staff (adjusted for part-time positions) 38 Organisation Board of Directors Dr. Mario Frick, Chairman Werner Fiori Kuno Frick sen. Mag. Johann Fahrnberger Dr. Kuno Frick, CIO (from ) Management Edi Wögerer, CEO Roland Frick, CFO Dr. Kuno Frick, CIO (until ) Auditor ReviTrust Grant Thornton AG, Schaan PR contact Edi Wögerer / Dr. Mario Frick 31

34 THE MEMBER BANKS annual report 2014 EFG Bank von Ernst AG Profile EFG Bank von Ernst AG combines the tradition of Swiss private banking and wealth management with the advantages of the Principality of Liechtenstein such as a stable social, legal, and economic order, political stability, the solid financial policy of its public budgets, and close ties with the Swiss Confederation. EFG Bank von Ernst AG offers first-class services. Discretion, respect for privacy, and preservation of their clients assets are fundamental values of our personal service. These principles form the basis of their business philosophy. EFG Bank von Ernst AG puts client satisfaction first and pursues a conservative risk policy. With a BIS core capital rate of 60.6 % EFG Bank von Ernst AG is the most highly capitalised bank in Liechtenstein and already meets the future requirements under Basel III. Since trust is the most valuable good in banking, a broadly diversified bond portfolio in the amount of approximately CHF million has been pledged to them by their parent company to secure client claims. Facts & Figures in million CHF Balance sheet total Annual profit 1.1 Equity capital (before appropriation of profit) 36.9 Assets under management Staff (adjusted for part-time positions) 16.3 Organisation Board of Directors Rudy van den Steen, Chairman Gerhard H. Müller, Vice-Chairman Ernst Weder John Williamson Management Daniel Taverna Committee Andreas Bruggmann Auditor PricewaterhouseCoopers AG, St. Gallen PR contact Daniel Taverna 32

35 THE MEMBER BANKS annual report 2014 Raiffeisen Privatbank Liechtenstein AG Profile Since its founding in 1998, Raiffeisen Privatbank Liechtenstein has successfully established itself as a reliable partner for wealthy private clients and intermediaries. The central promises made to clients by the multiply prize-winning bank are security and internationality. To meet the high demands of investors, the bank develops individual solutions in wealth management. Attributes such as longterm security of client assets, a fundamentally solid investment policy with the goal of sustainable performance, and the greatest possible closeness to the client are paramount. As a professional wealth manager with a wide network of international relationships, clients benefit from the bank s cross-border advisory services. The term Raiffeisen contained in the bank s name is a selfimposed obligation that shapes all interactions with the client: it stands for sympathy, reliability, and experience. The addition of Privat bank strengthens the core businesses of private banking and trust banking and emphasises the character as a private bank. Facts & Figures in million CHF Balance sheet total Annual profit 0.3 Equity capital (after appropriation of profit) 40.9 Assets under management 1,131.9 Staff (adjusted for part-time positions) 36.9 Organisation Board of Directors Dr. Günther Dapunt, Chairman Dr. Johannes Ortner, Vice-Chairman Mag. Richard Erne (from ) Prof. Dr. Hanns Fitz Dr. Herbert Fritz Dr. Andreas Gapp MMag. Erhard Tschmelitsch Gernot Uecker (until ) Dipl.-Kfm. Florian Widmer Management Markus Amann Board Thomas Mathis Ludwig Rehm (until ) Auditor ReviTrust Grant Thornton AG, Schaan PR contact Markus Amann 33

36 THE MEMBER BANKS annual report 2014 Kaiser Partner Privatbank AG Profile Kaiser Partner Privatbank AG is part of the privately owned and highly acclaimed wealth management group Kaiser Partner. For now more than three decades, it has supported families and their advisors in securing and growing wealth for the long term. The bank s service range from classic private banking to tailored investment concepts. Based on the principles of Responsible Investing, Kaiser Partner develops investment strategies and services guided by a desire for profitability and sustainability, and by a sense of responsibility. Clients benefit from a close personal relationship and the unique expertise of the Kaiser Partner Privatbank AG. The distinctive approach to asset management is realized in close cooperation with the Zurich based investment analysts of Wellershoff & Partners Ltd. More information: Facts & Figures in million CHF Balance sheet total Annual profit 2.6 Equity capital (before appropriation of profit) 47.0 Assets under management 2,395.6 Staff (adjusted for part-time positions) 37.3 Organisation Board of Directors Fritz Kaiser, Chairman Otmar Hasler, Member Dr. Elmar Wiederin, Member Managing Board Dr. Ariel Sergio Goekmen, Chairman Christian Reich, Member Christoph Küng, Member Auditor Ernst & Young AG, Zurich PR contact Bianca Hasler 34

37 THE MEMBER BANKS annual report 2014 Bank Vontobel (Liechtenstein) AG Profile Bank Vontobel (Liechtenstein) AG is a 100 % subsidiary of the Vontobel Group. Founded in 1924, the Vontobel Group is an internationally-oriented Swiss private bank and is headquartered in Zurich. Vontobel specializes in asset management for sophisticated private and institutional clients, as well as partners. It serves its clients via three business units: Private Banking, Investment Banking and Asset Management & Investment Funds. Assets of more than CHF 190 billion were entrusted to the Group as of the end of December Worldwide, 1,400 staff members offer firstclass and tailor-made services to internationally-oriented clients. Vontobel s registered shares (VONN) are listed in Switzerland on the SIX Swiss Exchange. The Vontobel family and the Vontobel Foundation hold the majority of shares and votes in the company. Facts & Figures in million CHF Balance sheet total Annual profit 0.2 Equity capital (after appropriation of profit) 30.9 Assets under management n.a. Staff 14 Organisation Board of Directors Georg Schubiger, Chairman Dr. Martin Sieg Castagnola Dr. Peter Hemmerle General Ruth Egeter-Woerz, Chairwoman Management Franz Schädler Auditor Ernst & Young AG, Bern PR contact Ruth Egeter-Woerz 35

38 THE MEMBER BANKS annual report 2014 Bank Alpinum AG Profile The success of wealthy private clients, entrepreneurs, and families is the goal of Bank Alpinum. Free from conflicts of interest and independent of a financial group, we offer clients very personal advice. The private bank is driven by experienced bankers, lawyers, and entrepreneurs who consistently bet on quality. Bank Alpinum is aware of the responsibility it bears. Its size is manageable, the hierarchies are flat, and decision-making paths are short. Advisors take the time to preserve and multiply clients assets over the long term. All services relating to modern strategic asset planning are offered. The focus is not on products, but rather on people, around whom everything revolves. Developing wealth across generations is the strength of Bank Alpinum. For this purpose, it relies on a global and handpicked network of business, legal, insurance, and tax experts as well as professional trustees and fund managers. Deeply rooted in the Liechtenstein financial center, Bank Alpinum consolidates expertise in a single source. Facts & Figures in million CHF Balance sheet total Annual profit 0.4 Equity capital (before appropriation of profit) 20.4 Assets under management Staff 22 Organisation Board of Directors Wolfgang Seeger, Chairman Yousef Sherkati, Vice-Chairman Werner Althaus Franz Jäggi Dr. Peter Reichenstein (until ) Board of Urban B. Eberle Management Peter Laukas Christian Oertli Auditor ReviTrust Grant Thornton AG, Schaan PR contact Karin Schöb-Müller 36

39 THE MEMBER BANKS annual report 2014 Union Bank AG UNION BANK Profile Union Bank AG s registered office is in Vaduz, Liechtenstein. The bank s focus is on Private Banking, Corporate Banking, and Family Office services for successful Eastern European entrepreneurs. The bank is a 100 % subsidiary of a Liechtenstein family foundation and has been on the market with this orientation since the end of It is the youngest member of the Liechtenstein Bankers Association. The far-reaching geopolitical and regulatory changes are a great opportunity for Union Bank AG. Specialising in core markets is of the utmost importance, allowing us to position ourselves clearly on the market. At the operational level, the reorganisation and new establishment of the Private Banking, Family Office, and Corporate Banking Advisory business segments have already shown initial success. Experienced market specialists and other experts have been recruited as employees in all areas of the bank. To increase efficiency, operational business activities have been consolidated at our Austrasse 46 location in Vaduz; the offices in Städtle 27 were vacated at the end of Facts & Figures in million CHF Balance sheet total 24.9 Annual profit -3.0 Equity capital (after appropriation of profit) 14.7 Assets under management Staff 13 Organisation Board of Directors Dr. Rico Baumgartner, Chairman Elfried Hasler, Vice-Chairman Dr. Christoph Sievers Marc P. Zahn General Thomas Schmidt, CEO Management Hans-Ulrich Nigg, CFO / COO (from ) Thomas Bühlmann, CFO / COO (until ) Auditor ReviTrust Grant Thornton AG, Schaan PR contact Thomas Schmidt 37

40 ORGANISATION annual report 2014 Organisation Position as of 1 May 2015 General Meeting 1 representative from each member bank Auditors Chairman Executive Board (7 Members) Secretariat (Director + Staff) Committees Working Groups Representations Memberships 38

41 ORGANISATION annual report 2014 Committees Working Groups Representations Memberships Finance Rafik Yezza Communication Simon Tribelhorn Loans Rafik Yezza Sustainability Simon Tribelhorn Operations Johann Wucherer Staff Sabine Langenegger Staff Development Anita Hardegger Legal & Compliance Andrea Brüllmann Taxes Simon Tribelhorn Automatic Exchange of Information (AEOI) Simon Tribelhorn Expert Group Compliance Andrea Brüllmann Expert Group IFRS Rafik Yezza Expert Group Regulatory Reporting Rafik Yezza English Language Training Sabine Langenegger Fund Centre Liechtenstein Andrea Brüllmann Basic Training Anita Hardegger Liquidity Rafik Yezza Dormant Assets Silvia Heron Tax Agreement with Austria Simon Tribelhorn SEPA End Date Johann Wucherer Tax Cooperation Simon Tribelhorn Systemically Important Financial Institutions Rafik Yezza UK Agreement Simon Tribelhorn Transposition of MiFID II Directive Andrea Brüllmann Transposition of EMIR Regulation Johann Wucherer Correspondent Banks/ Counterparties Andrea Brüllmann US-Withholding Tax & FATCA Rafik Yezza Remuneration Policy Rafik Yezza Depositaries Andrea Brüllmann More than 20 various ad-hoc and subject-related representations European Banking Federation (EBF) European Payments Council (EPC) European Parliamentary Financial Services Forum (EPFSF) We would like to thank everyone who participated actively in our committees and working groups over the course of the whole year. 39

42 LIST OF LIECHTENSTEIN BANKS annual report 2014 Liechtenstein Banks Position as of 1 May 2015 Bank Sequence according to the date on which the license was issued a) e-banking b) Swift-Code c) BC-No. d) PC-account e) SEPA f) GIIN g) LEI Member LBA a) Balance sheet total b) Client Assets u. M. c) Annual profit in million CHF (as of ) Liechtensteinische Landesbank AG Städtle 44 P.O. Box Vaduz Licence held since T F llb@llb.li a) Yes b) LILALI2X c) 8800 d) e) Yes f) K53BY LE.438 g) OE1FOAM50XLP72 Yes a) CHF 14,452.2 b) CHF 50,218.0* c) CHF 76.4 Staff 502 LGT Bank Ltd. Herrengasse 12 P.O. Box Vaduz Licence held since T F info@lgt.com a) Yes b) BLFLLI2X c) 8810 d) e) Yes f) ETSQ4H LE.438 g) 7KDSOB6Z0X4S67TMX170 Yes a) CHF 30,692.7 b) CHF 61,268.1 c) CHF Staff 771 VP Bank AG Aeulestrasse 6 P.O. Box 9490 Vaduz Licence held since T F info@vpbank.com a) Yes b) VPBVLI2X c) 8805 d) e) Yes f) 5U5UET LE.438 g) MI3TLH1I0D58ORE24Q14 Yes a) CHF 9,315.6 b) CHF 30,939.1* c) CHF 20.8 Staff 472 NEUE BANK AG Marktgass 20 P.O. Box Vaduz Licence held since T F info@neuebankag.li a) Yes b) NBANLI22 c) 8802 d) e) Yes f) QUEPPF SL.438 g) OLW8QPFMTBDC23 Yes a) CHF 1,309.8 b) CHF 4,615.5 c) CHF 6.7 Staff 55 Centrum Bank AG 9490 Vaduz Merger with VP Bank AG, Vaduz as of Yes a) CHF 1,928.3 b) CHF 7,100.1 c) CHF Licence held since Staff 81.9 Volksbank AG Feldkircher Strasse 2 P.O. Box Schaan Licence held since T F info@volksbank.li a) Yes b) VOAGLI22 c) 8812 d) e) No f) 17ZSBB ME.438 g) UHDH7QLRMEJQ86 Yes a) CHF b) CHF 1,828.1 c) CHF 4.2 Staff 33.1 * consolidated 40

43 LIST OF LIECHTENSTEIN BANKS annual report 2014 Bank Sequence according to the date on which the license was issued a) e-banking b) Swift-Code c) BC-No. d) PC-account e) SEPA f) GIIN g) LEI Member LBA a) Balance sheet total b) Client Assets u. M. c) Annual profit in million CHF (as of ) Valartis Bank (Liechtenstein) AG Schaaner Strasse Gamprin-Bendern Licence held since T F info@valartis.li a) Yes b) HYIBLI22 c) 8803 d) e) Yes f) WFS90C LE.438 g) XB6RQ3XCELQO62 Yes a) CHF 1,997.3 b) CHF 3,945.1 c) CHF 17.1 Staff 83.5 Banque Havilland (Liechtenstein) AG (formerly Banque Pasche (Liechtenstein) SA) Austrasse 61 P.O. Box Vaduz Licence held since T F info.lie@banquehavilland.li a) Yes b) SFBALI22 c) 8814 d) e) No f) YN6NPR ME.438 g) KO1GDQ208GOP45 Yes a) CHF b) CHF 1,015.6 c) CHF -2.8 Staff 24 Bank Frick & Co. AG Landstrasse 14 P.O. Box Balzers Licence held since T F bank@bankfrick.li a) Yes b) BFRILI22 c) 8811 d) e) Yes f) F011IR SL.438 g) RQOBT3ZJMDRK43 Yes a) CHF 1,603.4 b) CHF 2,621.0 c) CHF 2.5 Staff 38 EFG Bank von Ernst AG Egertastrasse 10 P.O. Box Vaduz Licence held since T F info@efgbankvonernst.com a) Yes b) EFGBLI22 c) 8667 d) e) Yes f) 3S4QHA ME.438 g) Z355879WHNF139 Yes a) CHF b) CHF c) CHF 1.1 Staff 16.3 Raiffeisen Privatbank Liechtenstein AG Austrasse 51 P.O. Box Vaduz Licence held since T F info@raiffeisen.li a) Yes b) RAIBLI22 c) 8813 d) e) Yes f) R8B9N ME.438 g) LPOMNO5PKFJZ64 Yes a) CHF b) CHF 1,131.9 c) CHF 0.3 Staff 36.9 Kaiser Partner Privatbank AG Herrengasse 23 P.O. Box Vaduz Licence held since T F info@kaiserpartner.com a) No b) SERBLI22X c) 8806 d) e) No f) IA0C3P ME.438 g) DPOQPLDSF3R482 Yes a) CHF b) CHF 2,395.6 c) CHF 2.6 Staff

44 LIST OF LIECHTENSTEIN BANKS annual report 2014 Bank Sequence according to the date on which the license was issued Bank (Reihenfolge gemäss Datum der Konzessionserteilung Sequence according to the date on which the license was issued) a) e-banking b) Swift-Code c) BC-No. d) PC-account e) SEPA f) GIIN g) LEI Member LBA a) Balance sheet total b) Client Assets u. M. c) Annual profit in million CHF (as of ) Alpe Adria Privatbank AG (in voluntary liq.) Immagass 2 P.O. Box 9490 Vaduz Licence held since T F info@alpe-adria-privatbank.li a) No b) c) d) e) No f) VRLCYT ME.438 g) No a) CHF 7.9 b) CHF n.a. c) CHF n.a. Staff n.a. Bank Vontobel (Liechtenstein) AG Pflugstrasse 20 P.O. Box Vaduz Licence held since T F postmaster@vontobel.li a) No b) c) d) e) No f) GZG8H ME.438 g) Yes a) CHF b) CHF n.a. c) CHF 0.2 Staff 14 Bank Alpinum AG Austrasse 59 P.O. Box Vaduz Licence held since T F info@bankalpinum.com a) Yes b) BALPLI22 c) 8801 d) e) Yes f) JIX85I SL.438 g) K7I3TLNULZH805 Yes a) CHF b) CHF c) CHF 0.4 Staff 22 Union Bank AG Austrasse 46 P.O. Box Vaduz Licence held since T F info@unionbank.li a) Yes b) UNIVLI22 c) 8815 d) e) Yes f) U2EFG SL.438 g) MK00MZH17O2A83 Yes a) CHF 24.9 b) CHF c) CHF -3.0 Staff 13 SIGMA KREDITBANK AG Landstrasse 156 P.O. Box Triesen Licence held since T F info@sigmakreditbank.li a) No b) c) d) e) No f) XZ71FG SL.438 g) No a) CHF b) CHF n.a. c) CHF 1.7 Staff

45 Liechtenstein Bankers Association Austrasse 46, 9490 Vaduz Principality of Liechtenstein T: , F: Photo, cover page: Aleksandar Mijatovic - Fotolia.com