FOREWORD

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FMA Annual Report 2021 TABLE OF CONTENT

The Liechtenstein financial centre is in very good shape and on a growth path. The financial sector has continued to perform reliably in the second year of the Covid-19 pandemic, supporting the real economy. The Liechtenstein economy as a whole has demonstrated high resilience during the global recession.

With the outbreak of war in Ukraine, however, the

financial sector is once again facing a major and unexpected challenge. In addition to the high volatility on the financial markets, the rise in energy and food prices and the associated supply shock will have a significant impact on the global economy and further increase inflationary pressure. The FMA is in close contact with financial intermediaries in order to properly classify the risks and address them effectively by means of suitable micro- and macroprudential instruments.

During the second year of the Covid-19 pandemic, the FMA team mainly worked together virtually. With the FMA’s high level of digital maturity, the technical requirements for smooth supervisory operations were met, but the work situation was challenging for all employees. They deserve our deepest thanks for their positive attitude and reliable work during this time.

In this Annual Report, we portray our core principles. These core principles guide us in the way we work and outline the values we uphold to achieve our goals. In addition to this internal impact, the core principles show our stakeholders what we stand for. We and our

work should be measured by these core principles.

The principles of the enforcement of supervisory law, which we defined during the reporting year, are also intended to provide guidance for employees and transparency for market participants. Enforcement has become more important in our supervisory activities. Rigorous enforcement of the complex and extensive supervisory law is intended to eliminate defects and achieve a preventive effect.

The FMA is an attractive employer. In 2021, it was recognised as the most family-friendly company in Liechtenstein. An updated human resources strategy is intended to secure the FMA’s attractiveness as an

employer. The strategy builds on what has proven to be effective, and it includes developments in the working world such as new forms of work and changing needs of employees.

Our authority has been taking a close look at sustainable finance. The FMA supports the Government in regulatory projects and incorporates the new rules – to prevent greenwashing, for instance – into its supervisory activities. The financial sector has a major role to play in achieving sustainability goals. The FMA must, of course, also act sustainably in the environmental and social context and as part of good corporate governance.

In the reporting year, Liechtenstein's anti-money laundering (AML) defence mechanism was assessed by MONEYVAL. Anti-money laundering has been a priority for the FMA for many years. In 2019, the FMA

F OREWORD FMA Annual Report 2021 7

consolidated AML within a special unit and strengthened its staff. AML measures have proven to be efficient and effective. Another priority is cybersecurity among financial market participants. The FMA has issued a guideline defining the requirements for the security of information and communication technologies.

When his term of office expired at the end of 2021, Chairman Prof. Dr. Roland Mueller stepped down from the Board of Directors. Roland Mueller had joined the Board of Directors in 2010. The Board of Directors, all

the members of which were newly appointed at that time, was tasked with establishing the FMA as an internationally integrated and recognised authority in light of the increased demands on supervision following the global financial crisis. Roland Mueller served as Vice Chairman of the Board of Directors from 2010 to

2016 and Chairman from 2017 to 2021. We thank him

for his many years of dedication to the FMA.

Dr. Christian Batliner

Chairman of the Board of Directors Mario Gassner

Chief Executive Officer