Liechtenstein does not have a stock exchange based in the European Union, however, listing on a regulated market is possible and companies here are admitted to trading on other stock exchanges. The Swiss Stock Exchange is preferred among company owners in the Principality who want to list their businesses for further profits.
The FMA (Financial Market Authority) oversees any financial transaction registered in the Principality and also outside the country where complete transparency is requested. If you want to list your company on the stock exchange, it is best to solicit help and legal support from our lawyers in Liechtenstein.
Listing under the FMA supervision in Liechtenstein
The Financial Market Authority in the Principality is the main body which supervises the companies registered in Liechtenstein and listed on the stock exchange in Europe. It is good to know that companies need to consider the rules and regulations imposed by the FMA, and some of the main ones referring to good practice and transparency are listed below:
- Trade in regulated venues: the trading in financial products should take place only at regulated venues and the organized trading facilities are available along with traditional options for trading, such as the regulated markets.
- Transparency: there are a set of applicable rules for transparency that apply both during the pre-trading phase and afterward.
- Electronic trading: high-frequency electronic trading requires specialized rules to ensure that this method of trading is implemented accordingly.
- Regulation for speculation: the practice of commodity speculation is regulated by national authorities so as to limit the possibility to impose financial practices that leas to increased prices for basic products.
Any financial operation on the stock exchange in Europe with participants from Liechtenstein is reported to the FMA which strongly collaborates with the ESMA (European Securities and Markets Authority), another important entity in financial matters. Additional details about how to list your company on the stock exchange can be obtained from attorneys in Liechtenstein.
We invite you to watch a video on listing Liechtenstein companies on the Stock Exchange:
The Swiss Stock Exchange
The Swiss Stock Exchange is often chosen byLiechtenstein companies for listing purposes. Investors may list the following on the SIX Swiss Exchange: equities, bonds, derivatives, exchange-traded products, exchange-traded funds, investment, and real estate funds. A listing application is submitted by all entities that wish to engage in the process.
Some of the main listing rules include the following: the company must have been incorporated for at least three years and upon registration must provide the financial statements for the last three years. It must have appointed auditors and have the accurate reports drawn up according to the financial reporting standards. The company must also satisfy the conditions for having adequate capital resources, the reported equity capital must be of at least 2.5 million CHF.
For additional information regarding the rules and regulations for listing a Liechtenstein company on the stock exchange, we invite you to contact our law firm in Liechtenstein.
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