Trend

In a reaction to the financial market crisis, the 20 largest industrial nations (G-20) decided in 2008 not to permit any financial market players to remain unregulated. Regulatory initiatives were introduced throughout the world to reduce risks. Stricter regulation means more administrative effort and higher costs but also offers opportunities. One example is the EU directive for alternative investment fund managers. All EU/EEA states must enact the directive into national law by 21 July 2013. This new directive applies to all managers in the EU, but also to those in third countries, who want to manage or distribute their funds in the EU. In future, the selection of a fund location will increasingly depend on its integration in internationally standardized regulatory provisions and the actual practice of the respective national supervisory authority. Liechtenstein is one of the first jurisdictions to be able to offer its clients a functioning, efficient and AIFM-compatible environment and therefore legal certainty. Over half of the fund assets managed in Liechtenstein is already invested in alternative investments.

Once again in 2012, institutional investors in Liechtenstein and Switzerland were guided to a disproportionate extent by safety concerns when making investments. At the same time, they continued to seek new diversification possibilities. A trend can be discerned towards more strongly diversified portfolios using alternative investments in order to reduce the correlation between traditional investment solutions. It can be assumed that institutional investors and also family offices will consider the employment of alternative investment funds when granting new mandates. The AIFM directive will set new standards in the European fund industry. The rapid and market-compatible implementation of strategic EU regulations offer positive future perspectives for Liechtenstein, and therefore for the LLB Group.

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