2017

Staff
STIFA’s staff at the end of 2017 consisted of the Head of the Division and its Deputy.

Activity
At the beginning of 2017, 1’326 common-benefit foundations and 19 private-benefit foundations were subject to STIFA supervision. By the end of 2017, the figures had risen to 1’355 common-benefit foundations, 20 private-benefit foundations and five common-benefit establishments. The court applies an independend audit authority for every common-benefit foundation or establishment. This audit authority has to report to the STIFA within 9 months after the end of the accounting year. on January 1st, 2018 there was an outstanding of 141 reports.

STIFA may exempt common-benefit foundations and establishments from this obligation to appoint an audit authority and then STIFA exercises the inspection in its own discretion at three-yearly intervals. As of 31 December 2017, 156 common-benefit foundations were exempted from the obligation to appoint an audit authority.

The focus was on carrying out STIFA audits of the exempt foundations (art. 552 § 29 para. 3 of the Persons and Company Law, PGR), the processing of reports by audit authorities with objections concerning the management and/or appropriation of foundation assets. The STIFA applied to the court in 12 cases (previous years: 20; 15; 24; 23) for supervisory measures.

In sample verifications STIFA inspected the accuracy of the deposited notifications of formation and amendment in the case of private-benefit foundations (art. 552 § 21 PGR). In total 72 inspections there were no objections (previous year: 3) and two referrals (previous year: 1).

Common-benefit foundations by year end 2017
(in brackets means exemption from the obligation to appoint an audit authority)
1’355 (156)
2016: 1’323 (162)
2015: 1’286 (164)
2014: 1’239 (166)
2013: 1’199 (187)
2012: 1’169 (207)
Total newly under supervision (previous years) 80 (96; 103; 78)
Of whom established in 2016 (previous years) 39 (45; 81; 39)
Objections by audit authorities per accounting year 2016 (in brackets previous years) 28 (46; 30; 35; 47)
Asset Management 3 (2; 2; 2; 10)
Distribution of assets 1 (14; 9; 7; 20)
Organization irregularities 8 (10; 9; 11; 8)
Accounting irregularities 4 (17; 10; 14; 7)
Foundation endangerment 2 (3; 0; 1; 0)
Referrals by audit authorities per accounting year 2016 (in brackets previous years) 94 (99; 91; 83; 65)
Creditworthiness of loan 3 (4; 4; 3; 3)
Risk concentration 1 (1; 2; 2; 2)
Distribution of assets 30 (30; 29; 35; 19)
Lack of funds / overindebtedness 12 (16; 11; 11; 19)
Indirect activities via subsidiary 4 (5; 6; 5; 5)
Change of domicile 1 (0; 0; 0; 0)
Costs 2 (7; 10; 11; 16)
Organization, accounting 6 (6; 7; 8; 4; 7)
Civil lawsuit 3 (3; 3; 1; 0)
Criminal proceedings 32 (24; 18; 8; 3)
Dissolution 0 (1; 1; 2; 1)
Delayed registration 0 (0; 1; 2; 1)
Objections by STIFA in 2017, 51 inspections (in brackets previous years) 7 (8; 15; 14)
Asset management 1 (1; 1; 1)
Distribution of assets 3 (3; 7; 1)
Lack of organization 2 (3; 4; 1)
Lack of accounting 0 (0; 1; 2)
Revocation of exemption 1 (1; 1; 9)
Referrals by STIFA in 2017, 51 inspections (in brackets previous years) 24 (21; 21; 26)
Asset management 7 (12; 8; 17)
Lack of funds / dissolution 11 (6; 12; 9)
Organization 2 (3; 0; 0)
Costs 4 (0; 0; 0)
Assets 0 (0; 1; 0)
Proceedings to appoint an audit authority
(in brackets previous years)
95 (121; 120; 111)
Proceedings to exempt from the obligation to appoint an audit authority
(in brackets previous years)
18 (28; 19; 18)
Supervisory measures under art. 552 ¶ 29 para. 3 Persons and Company Law (PGR), STIFA is applicant
(in brackets previous years)
Proceedings opened 12 (20; 15; 24; 23)
Proceedings closed 13 (22; 15; 22; 14)
Proceedings pending 2 (2; 3; 4; 9)
Of whom in appeal 1 (1; 0; 0; 0)
Supervisory measures under art. 552 ¶ 29 para. 4 PGR, applicant are foundation participants
(in brackets previous years)
Proceedings opened 6 (1; 2; 4)
Proceedings closed 3 (4; 0; 0)
Proceedings pending 6 (3; 5; 4)
Of whom in appeal 1 (3; 1; 0)
Proceedings under art. 552 § 33 and § 34 PGR, Alteration of purpose or statutes
(in brackets previous years)
Proceedings opened 5 (1; 2; 4)
Proceedings closed 2 (0; 3; 4)
Proceedings pending 4 (1; 0; 1)
Reporting to the prosecutor because of failing to notify to STIFA, art. 3 of the transitional provisions of the new foundation law
(in brackets previous years)
1 (8; 0; 0)
Administrative assistance, art. 36 para 1 Due Diligence Law
(in brackets previous years)
0 (3; 0; 0)
Verification of the deposited information of non registered foundations, art. 552 § 21 PGR, six representatives 72
2016: 6 representatives inspected 60
2015: 5 representatives inspected 61
2014: 3 representatives inspected 50
2013: 2 representatives inspected 50
2012: 1 representative inspected 50

With short lectures and presentations e.g. at lunch meetings, STIFA sought dialogue with the market participants. STIFA actively aimed for the exchange of experience with:

  • the Liechtenstein Association of non-profit foundations;
  • the Association of Auditors;
  • the Tax Authority;
  • the European Foundation Center;
  • the Association of Foundation Supervision Authorities of East Switzerland.

Recent STIFA Participation Activities and Events:

  • an advanced training course with German foundation supervisors;
  • the general meeting of the Swiss Cantonal Foundation supervising authorities;
  • organizing a two days meeting with some European Foundation Supervisors regarding cross boarder supervision and the combating of financing terrorism in Vaduz
  • two speeches in training courses with the Association of Auditors
  • one speech at the University of Liechtenstein
  • several working groups