The Liechtenstein Government intends to amend the Banking Act and the Financial Market Authority Act, the primary aim being to enable the Financial Market Authority to adjust the minimum capital of banks and investment firms to their risk profiles and make the jurisdiction more attractive to financial IT companies.

The new capital requirements suit the European Union, guaranteeing the jurisdiction's access to the European Economic Area. The so-called consultation report is entitled "Planned reduction of barriers to entering the Liechtenstein financial centre for innovative companies." In its meeting of 31 January 2017, the Government adopted a consultation report on amendments to the Banking Act and the Financial Market Authority Act.

Existing banking regulations are based on the model of universal banks offering a comprehensive range of products. With the emergence of fintech companies as providers of banking services, there has been a clear trend toward specialisation. In future, the Government believes, an increasing number of companies will be offering only a certain subset of banking services that are associated with an individual risk profile. The planned legislative amendments are expected to allow the Financial Market Authority to take better account of these developments.

The consultation period ends on 10 March. The consultation report is available from the Government Chancellery or online at www.rk.llv.li.