The Liechtenstein Financial Market Authority (FMA) announced that a new legal framework governing the supervision of banks and investment firms entered into force on 1 February 2025, alongside the related implementing ordinances. The framework restructures prudential and conduct requirements across banking, investment services, investment firms and trading venues. For banks and (mixed) financial holding companies, prudential requirements now stem from Regulation (EU) No. 575/2013 (CRR) and the new Banking Act, supported by a new Banking Ordinance and a separate Banking Accounting Ordinance containing bank accounting rules. Investment firms are subject to Regulation (EU) 2019/2033 (IFR) and the new Investment Firms Act, while conduct of business requirements for providing investment services and activities are set out in the new Investment Services Act; trading venue requirements for multilateral trading facilities, organised trading facilities and systematic internalisers are set out in the new Trading Venues and Stock Exchanges Act. The Banking Act also updates key definitions and the catalogue of banking business, revises the process and consequences for licence expiry or withdrawal including mandatory appointment of a liquidator to wind up open banking transactions, introduces prior FMA approval before taking up roles in management or the board and, for significant banks, key functions, and sets organisational expectations including front-office/back-office separation and statutory requirements for risk management and compliance; changes to business regulations now require approval. The FMA noted that its decrees, and related guidelines, notices and instructions, are being adapted to reflect the new legal basis.

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