In accordance with EU directives, Art. 7 of the Liechtenstein Banking Act (BankG) contains provisions on the guarantee of bank deposits and the protection of investors. The law requires banks and other financial service providers to ensure adequate protection of deposits and investments with supervised financial service providers by establishing separate organisations or by participating in foreign protection schemes.
In 2001, the Liechtenstein Bankers Association (LBA) decided to implement an autonomous solution and established the Deposit Guarantee and Investor Protection Foundation of the Liechtenstein Bankers Association (EAS). In view of the ever more demanding regulatory requirements for all supervised financial service providers and considering that the operation of separate investor compensation organisations proved to be too expensive for other financial service providers, the LBA made the groundbreaking decision to open the existing organisation and expand to other financial service providers that are under the statutory obligation to join an investor compensation scheme. A single, combined protection organisation would suit best the specific needs and requirements of the financial centre. The protection organisation has now been renamed "Deposit Guarantee and Investor Compensation Foundation PCC" (EAS).
As a combined protection organisation, EAS is an autonomous foundation under Liechtenstein law in the form of a protected cell company. In the event of default of a bank or other financial service provider that is in an pre-existing contractual relationship with the foundation, the foundation has assumed the responsibility to compensate their clients up to a certain maximum amount. In this way, the EAS – Liechtenstein's only protection organisation – makes a significant contribution to creditor protection and to the reputation and stability of the Liechtenstein financial centre.
For further information, please refer to the Annual Report 2019.