Legal situation in Liechtenstein concerning retrocessions finally clarified

Retrocessions also belong to investors in the Principality of Liechtenstein

In 2018, Liti-Link AG, represented by Schwärzler Attorneys at Law, initiated a step-by-step action against LGT Bank AG for disclosure and surrender of retrocessions. After four years of proceedings, the Liechtenstein Supreme Court (OGH) ruled that retrocessions, regardless of the type of business relationship, must also be disclosed in Liechtenstein and handed over to investors.

LGT Bank Ltd. filed an individual appeal against this decision with the Liechtenstein Supreme Court, which has now had to deal with the issue of retrocessions for the first time.

State Court confirms legal opinion of the Supreme Court

The State Court, which did not follow up the individual appeal, now confirmed that LGT Bank Ltd. did not inform its clients in a legally effective manner about the retrocessions it received. Thus, a mere notification that the bank could receive retrocessions is not sufficient, as no information on the amount of the retrocessions was disclosed either.

The legal situation in Liechtenstein is thus finally clarified

The limitation period for retrocessions in the Principality of Liechtenstein is currently still 30 years. However, this will change as early as 31.05.2023, due to a recently adopted revision of the law. In view of the short transition period, quick action is required for all those who have invested or had invested funds in the Principality of Liechtenstein in the last 30 years.

Until the deadline of 31.05.2023, claims can still be asserted for the last 30 years, after which investors will lose virtually all claims to which they are entitled according to the Princely Supreme Court for the last 30 years.