Liechtenstein is a constitutional monarchy, a member state of the UN (1990) and the European Economic Area (1995), is classified with the AAA rating. Since 1924, Liechtenstein has formed a monetary and customs union with Switzerland. The FMA (Financial Market Authority Liechtenstein) is the Supervisory Authority for the financial and insurance market.
Insurance secrecy: Art. 44 VersAG Liechtenstein
The members of the insurance company and their employees as well as all other persons employed in such company are required to reserve the secret on non-public facts, that have been entrusted to it by virtue of the relationship with the customer or that have become accessible in accordance with the business relationship.
The obligation of secrecy is unlimited in time.
Asset Protection: art. 78 EO (Exekutionsordnung)
If the spouse or the descendants of the policyholder are beneficiaries, then, subject to any liens, neither the insurance claim of the beneficiary nor of the policyholder shall be subject to enforcement on behalf of the creditors or to the bankruptcy of the policyholder or the beneficiary. A person living in cohabitation with the policyholder shall be considered equivalent to a spouse.
Investor Protection: Art. 59a c.1 VerAG – Satisfaction of insurance claims
The assets covering technical provisions shall constitute a separate bankruptcy estate in accordance with article 45 of the bankruptcy code to satisfy insurance claims. The court shall order that the listing of assets dedicated to the separate estate be concluded immediately and submitted to the supervisory authority. The supervisory authority shall determine the separate estate for the time that bankruptcy is opened. Reflows and income from the assets dedicated to the separate estate and premiums for the insurance contracts included in the separate estate that are received after bankruptcy has been opened shall fall into this separate estate.
The law of Liechtenstein offers great flexibility with regard to the use of financial instruments, also the use of non-harmonized funds is unrestricted.