Asset Protection - Recht und Wirtschaft im nationalen und internationalen Umfeld

January 2011 until October 2014 (completed) FFF-Funding Project

Project Description

This research project tackled the question of the degree to which Liechtenstein private law and any related legal fields still meet the current requirements made of private wealth management, or whether there is a need for amendments to be made to the Persons and Companies Act for the purposes of asset protection. The research conducted did solely not focus on legal aspects, but also took into account economic considerations. The aim of this project was to develop a definition of asset protection for Liechtenstein, whilst maintaining the liberal approach typical of Liechtenstein. In doing so, its attractiveness and acceptance abroad should be increased and the status of the domestic financial centre bolstered in the long term. Special attention was paid to the impact on business, so as to ensure that the future development of the financial centre continues to be advanced in an efficient manner. On the basis of the research conducted in respect of domestic and foreign academic literature and case law, a questionnaire was drafted in the first phase of the project and sent to experts working in the industry. This was undertaken in order to determine the needs of the industry, which were taken into account during subsequent research work. Due to the international importance of asset protection, enhanced cooperation with Anglo-American institutions was pursued, in order to gain insights into solutions which could be transferred into national law. The planned European Foundation was also examined in regard to its suitability for asset protection, in order to take into account the alternative methods of protecting assets by placing them into philanthropic projects. The results of the research project were published successively in separate publications throughout the project duration. At the end of the project, an asset protection handbook containing the complete results of the research was published.

Relevance to Liechtenstein

The aim of this project was to develop a definition of asset protection for Liechtenstein and to improve it, whilst maintaining the liberal approach typical of Liechtenstein. This should increase its attractiveness and acceptance abroad and lead to a bolstering of the domestic financial centre in the long term. Handbuch des Vermögensschutzes (MANZ Verlag 2015).

Scientific, Economic and Societal Impact

As the project is primarily oriented towards practice in the private wealth management field in Liechtenstein's financial centre, it is naturally of relevance beyond a purely commercial realm. For example, specific guides should be created as individual publications for the practical users - in particular for trustees (Treuhänder), lawyers, banks and insurance companies