The recent developments and changes in the last two years in the Principality of Liechtenstein underline the attractiveness for international asset protection for international clients.

Liechtenstein will enact the new law on asset management (VVG) as at 1 January 2006. This makes Liechtenstein fully compliant with the EU Directives 2004/39/EG of the European Parliament and European Council dd. 21 April 2004 on markets for financial instruments (to amend earlier EU Directives 85/611/EWG and 93/6/EWG and 2000/12/EG and to cancel the EU Directives 93/22/EWG).

The Liechtenstein law provides for foundations of two kinds: private law (privatrechtliche) and public law (öffentlichrechtliche). The present overview is confined to family foundations established under private law.