Investments

Internationalization

In 2012, we concentrated our thoughts and activities on building up the new private banking organization. The focus was squarely on the segmentation of clients and markets. Since 1 July 2012, the Private Banking of the LLB Group has been divided into eight market areas – independent of the legal units. This ensures transparency and clear accountabilities. Furthermore, we now have our own product management function. Specialists intensively monitor our target markets and react flexibly to risks and opportunities. They develop made-to-measure products and services to fulfil the needs of our private banking clients exactly.

Consequently, we are continuing to put in place the focused internationalization for which we laid the foundations over the last few years. We are making targeted investments in the further development of the emerging markets in Central and Eastern Europe as well as in the Near and Middle East. And we are also investing in the further development of our product range as well as in country-specific products and processes. For example, within the scope of active advisory mandates we serve investors, who wish to make their own investment decisions but who also want to benefit from transparent and systematic portfolio monitoring as well as from competent market analysis and advice.

Since our positioning in the target markets will depend on a high level of flexibility and constant client orientation, in 2012 we consistently invested in the advanced training of our client advisors. They not only have to identify and fulfil ever changing client requirements, but also keep abreast of the increasingly complex international regulatory provisions. Accordingly, we made great efforts groupwide to enhance our expertise in the complex area of cross-border banking.

Tax compliance

The LLB Group is blazing the trail in the Liechtenstein financial centre as regards the issue of tax compliance. In principle, clients are themselves responsible for fulfilling their tax obligations and for complying with the provisions that apply to them. Since 1 October 2012, the LLB has been applying a risk-based approach and, where certain indications are present, it requests a declaration from its new foreign clients that their assets have been taxed. This new requirement in new client business applies globally to all the LLB Group’s business locations and business areas. Clients are exempt who participate in the Liechtenstein Disclosure Facility (LDF), a bilateral disclosure programme, which applies only to the Liechtenstein financial centre and which was concluded with the United Kingdom of Great Britain and Northern Ireland (see chapter «Regulatory environment and developments»).

Advisory quality

Classical values such as a sense of responsibility and security have always been of cardinal importance for the LLB Group. The «Fuchsbriefe» business journal once again highlighted the continuity of our advisory quality in its 2013 rankings. In its assessment of written investment strategies, the Liechtensteinische Landesbank came 2nd among 106 competitors in Germany, Austria, Luxembourg, Switzerland and Liechtenstein. Our care and our way of dealing with clients‘ attitude to risk convinced the analysts. «The Landesbank is convincing due to its well-founded explanation of the concept and its individual answers to complex questions», stated the award decision. In the combined category of «Investment strategy» and «Portfolio quality», the LLB was 3rd. It moved up to number 13 on the so-called all-time best list.

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