Financial Market Authority (FMA) Liechtenstein

1. Financial Market Authority (FMA) Liechtenstein Dr Stephan Ochsner, CEO

2. Contents • Liechtenstein: Facts & Figures • Liechtenstein Financial Market • Financial Market Authority (FMA) Liechtenstein

3. Liechtenstein: Facts & Figures Area: • 160 km2 • about 260 x smaller than Switzerland (41284 km2) Borders • 41.1 km with Switzerland • 34.9 km with Austria Population: Ca. 34‘000 Jobs: Ca. 29‘000 Commuters: Ca. 13‘000 daily AAA-Rating (Standard & Poor’s)

4. Liechtenstein: Facts & Figures II • Government: • constitutional hereditary monarchy, • democratic parliamentary system • Gross domestic product: CHF 4.5 bn • Industry 40% • Financial Services 30% • General Services 25% • Households, agriculture etc. 5% • International Linkages: • 1923: Switzerland - Currency Union and customs Treaty (SNB as lender of last resort) • 1978: Council of Europe • 1990: UN • 1991: EFTA • 1995: EEA / World Trade Organization (WTO)

5. Liechtenstein Financial Market • Member of two economic areas: • European Economic Area (EEA): • EU-Directives to be implemented into national law • Principle of single license and home state control • Supervised by the EFTA Surveillance Authority • 2. Switzerland • Customs- and Currency Treaty • Payment system • Swiss National Bank is lender of last resort

6. Liechtenstein Financial Market • Assets under management as of 31 December 2006, in billion (thousand • million) Swiss francs: • Banks (consolidated) 171.9 • Investment Undertakings (funds) 26.6 • Insurance Undertakings / Pension schemes 17.2 • Total 215.7 + 18.7 % over preceding year • Financial market participants December 2006: • 1’864 directly supervised by the FMA • 1’344 indirectly supervised by the FMA (free movement/way to provide services)

7. Liechtenstein Financial Market Institutions supervised (as per December 31, 2006): • Banks and finance companies (16) • asset management companies (48) • investment undertakings (348) • insurance undertakings (35) • Insurance intermediaries (3) • pension funds (39) • professional trustees (403) • auditors (81) • lawyers (300) • patent attorneys (17) • Liechtenstein Postal Service (1) • persons with a confirmation pursuant to article 180(a) of the Law on Persons and Companies (495) • currency exchange offices (2) • real estate brokers (18) • traders with precious goods and auctioneers (37) • other subjects to due diligence (27)

8. Liechtenstein Financial Market • Workforce: • 14.3 % of the workforce in Liechtenstein generates • 30% of the gross domestic product • No national stock exchange • No national payment system

9. Financial Market Authority (FMA) Liechtenstein The FMA is an integrated and independent financial supervisory authority for the Liechtenstein financial services sector. The FMA operates as an autonomous institution under public law. • It reports exclusively to the Liechtenstein Parliament; • It is independent of the Government and the financial market participants.

10. Financial Market Authority (FMA) Liechtenstein • Budget and source of funding: • CHF 7’270’000 • Source: 55% financed by the state, 45% by fees • Number of employees: 30 • Organs: • The Supervisory Board (5 members), elected by Parlimament • The General Management (4 members), nominated by the Supervisory Board

11. Financial Market Authority (FMA) Liechtenstein The FMA shall safeguard • the stability of the Liechtenstein financial center • the protection of clients • the prevention of abuses and • the implementation of and compliance with international standards. Responsabilities • Supervision (independent) • Regulation (on behalf of and in coordination with Government) • Representation of the interests of Liechtenstein in international bodies, (on behalf and in coordination with Government)

12. Financial Market Authority (FMA) Liechtenstein VISION In fulfilling our sovereign mandate in a responsible manner, we safeguard the stability of the financial market, the protection of clients, the prevention of abuse, and the implementation of and compliance with recognized international standards. In this way, we contribute to the competitiveness and standing of the financial market and thereby to the welfare of the country of Liechtenstein.

13. Financial Market Authority (FMA) Liechtenstein Supervision We grant licenses in a responsible and speedy manner, we supervise consistently and fairly, and we fight abuses and punish violations, thereby protecting the clients of the financial market.

14. Financial Market Authority (FMA) Liechtenstein Regulation We regulate with the participation of the affected persons and entities, in fulfillment of international standards and taking into account the competitiveness of the Liechtenstein financial market.

15. Financial Market Authority (FMA) Liechtenstein External Relations We cultivate dialogue in our external relations and are recognized nationally and internationally on the basis of our competence and performance.

16. Financial Market Authority (FMA) Liechtenstein Enterprise We are independent, internally organized according to private sector principles, client-oriented, and we distinguish ourselves with exceptional quality and pragmatic solutions.

17. Financial Market Authority (FMA) Liechtenstein Team We are a team, actively value each other in our interactions, identify with our goals and responsibilities, act in an entrepreneurial manner, and are proud to make a contribution to success.

18. Financial Market Authority (FMA) Liechtenstein SMALL IS BEAUTIFUL, BUT EXTREMELY CHALLENGING

19. Contact Dr Stephan Ochsner Chief Executive Officer Financial Market Authority (FMA) Liechtenstein Heiligkreuz 8 9490 Vaduz T: +423 236 73 73 F: +423 236 73 74 E: stephan.ochsner@fma-li.li