An exclusive interview with ATU, a century old European family trust service provider

Allgemeines Treunternahmen (ATU)

Through professional attitude and experience

Jointly safeguarding the interests of investors

Provide effective services to customers

To ensure the security of customer assets

In the central Alps, located between Switzerland and Austria, there is a country known worldwide for its trust - the Duchy of Liechtenstein. It is located in the central Alps between Switzerland and Austria. With a total area of 160 square kilometers, it is the fourth smallest country in Europe. Liechtenstein belongs to civil law countries and is not a common law country. The court system is very effective locally.

Liechtenstein's legal system and court organization rely on Austrian law. Swiss law has also left significant marks on its legal system. Therefore, Liechtenstein law is a hybrid of Austrian and Swiss law. Of course, Liechtenstein has its own characteristics in terms of procedural law.

Liechtenstein introduced various corporate forms, fund laws, and common law trusts (trust settlements) in 1926; In addition, a commercial trust from the United States (Massachusetts) was introduced in 1928. Because there are multiple legal forms to choose from, it can make international customers feel at ease. Companies and foundations can increasingly benefit from Liechtenstein's dual tax treaty network.

In the Duchy of Liechtenstein, there are numerous trust companies, and the one that can persist for hundreds of years and still remember its original intention to provide customers with the best service is Allgemeines Treuernemen (ATU). For over 90 years, it has been representing families and investors worldwide to develop tailored wealth management and business solutions. Consulting services focus on asset restructuring, protection, and investment, as well as heritage and inheritance planning. For this reason, our company also conducted an exclusive interview with ATU Director Roger Frick:

Question 1: Why do high net worth (HNW) families choose Liechtenstein?

Roger Frick: Many high net worth families choose Liechtenstein because they face one or more of the following challenges: political instability, complex family structures, economic instability, or high risks in the business environment.

For example, transferring assets to a fund or trust company can provide greater security for these households, making assets unaffected by personal circumstances. High net worth households typically have multiple locations worldwide. This means that their legal and economic situation is particularly complex. We believe that this will not have a negative impact on its investment.

Liechtenstein can promise these families a high degree of political continuity and stability. Of course, the duchy can also directly enter the markets of the following two regions: the European Union/European Economic Area and Switzerland. In addition, Liechtenstein also has the following advantages:

·Strong business diversification.

·Free economic policies.

·Moderate corporate tax system and simple fiscal system (unified tax).

·Free company law.

·Stable public financial policies.

·AAA rating.

·Use Swiss franc as legal tender.

·Complete infrastructure.

·Eliminate bureaucratic style, achieve flexibility and quick decision-making.

·A financially strong public sector.

·Encourage research and development.

Collaborating with international high net worth families itself will face a series of challenges, including negotiating cultural differences, overcoming family discord, and revealing and addressing the legal complexity of overseas investment. It is necessary for the trustee to maintain continuous dialogue with all relevant family members, ensure transparency in the transaction process, and ensure that the red line is not crossed.

Question 2: How does Liechtenstein law protect beneficiaries of fully authorized offshore trusts?

Roger Frick: The person who establishes a trust is the client, also known as the settlor (legal term). They have the right to foresee various rights and obligations in trust contracts. The principal may decide or define:

a. Is the contract revocable.

b. Protecting human rights.

c. The rights of the principal.

d. The trustee must consult or accept instructions on the conditions.

e. Does the beneficiary have the right to file a claim. The principal may also decide whether the beneficiary is a full beneficiary or whether the beneficiary has the right of restoration.

f. Report requirements and conditions.

g. The term of the trust agreement.

h. The subject assets of the trust, as well as the degree of supervision and/or intervention of the trustee (whether it is a star/vista trust).

i. The internal control system of the trustee. An individual or corporate trustee is typically a component of a large enterprise that assumes clear control/reporting obligations.

j. The balance between obligations, rights, confidentiality, common reporting standards (CRS), and tax implications.

Liechtenstein's trust companies aim to become a flexible asset protection tool. The principal and qualified trustee under supervision should provide complete and detailed information on the beneficiary's rights and level of protection to high net worth households. When it comes to asset protection, it is best to choose several possible beneficiaries. This can ensure that beneficiaries do not make third-party legal claims that can be attached.

Question 3: Will and how will increasingly stringent global regulatory and compliance requirements affect your customers?

Roger Frick: Regulatory and compliance requirements primarily focus on cross-border activities. Therefore, the trustee is under tremendous pressure to increase "watchdog" activities. This is driven by compliance (rather than service) and will affect all customers. In the past two years, more and more so-called "third-party evidence" has been accepted. No agency, receiving bank, trustee, asset manager, or fund manager shall rely on information obtained from regulated professionals. They must all obtain third-party evidence from customers, and third-party evidence involving costs and bureaucratic practices needs to be doubled or tripled. But these are all changes that must be faced, and there doesn't seem to be a trend towards becoming easier. In addition, there are visible impacts on high net worth households, such as increased transparency and service provider countries paying for information exchange.

Question 4: Currently, which business structure/service is most favored by your customers? What are the main sources of regional demand? Has there been any change in this demand in recent years? How will things change in the future?

Roger Frick: Many of our clients are choosing to change their residence and passport, which seems to be a constantly evolving trend. Of course, cross-border circulation and activities have brought legal complexity to a new level. Customers are no longer as indifferent as before, adapting to higher regulatory levels and agreeing to increase compliance costs. Due to increased costs, they strongly hope to develop practical and effective solutions. The future transformation will be led by high net worth households who refuse to passively accept their own government's regulations on taxation, transparency, and foreign exchange. This transformation will provide support for our business, and as demand continues to grow, we need more professionals, greater flexibility, and willingness to serve.

Today, we live in a world that seems increasingly uncoordinated. On the one hand, politicians advocate for open borders and free circulation; On the other hand, as the number and strictness of regulations continue to increase, we are subject to increasingly strict controls. I feel that we are getting closer to economic mercantilism, and this situation is reminiscent of 40 years ago.

Question 5: The Group of 20 (G20), the Financial Action Task Force (FATF), and the Organization for Economic Cooperation and Development (OECD) are promoting public registers of corporate beneficial ownership and argue that by 2023, public registration of beneficial ownership may become a global standard. What is your position on this? How will it affect your customer base?

Roger Frick: For me, this is a war against confidentiality rights. The purpose of launching a public register of beneficial ownership rights is to combat tax evasion, money laundering, and terrorist financing. Of course, using forest fires can kill mosquitoes!

We will definitely implement the anti money laundering directives stipulated by the European Union. What else can European Economic Area countries do? Regardless, most customers will deposit their money into the European Economic Area jurisdiction seeking asset protection. Therefore, the question is, how to implement these rules in practice? What are the consequences? We have a certain understanding of the customer's final response. We believe that more high net worth families will change their passports and place of residence. Currently, some popular countries include Malta, Greece, Cyprus, Monaco, Italy, Portugal, Switzerland, Hong Kong, and the United Kingdom.

Question 6: Is Liechtenstein launching new investment portfolios or products into the market? How will jurisdictions innovate to cope with the future?

Roger Frick: Liechtenstein is a strong driver of innovation, providing support for startups and small and medium-sized enterprises. There are several ways to support it, such as the Ideenkanal business plan competition, research and development opportunities, and the investment market in Liechtenstein. Although readers may need to be able to speak German, the innovation standalone. li website provides a complete overview of the various fundraising documents provided. Liechtenstein has implemented a unique token law since January 1, 2020 to promote the adoption of tokenization technologies similar to blockchain services.

As a member of the European Economic Area, Liechtenstein provides entrepreneurs with EU passports, enabling them to conduct business outside of Liechtenstein and trade with all EU countries.

Question 7: Can Liechtenstein classify itself as one of the default jurisdictions for successfully preserving wealth globally?

Roger Frick: Liechtenstein's wealth preservation business is very professional. The long history of protecting the wealth of high net worth families has earned the Duchy a good reputation. For example, the Fund/Trust Act of 1926/1928. Its tax laws comply with EU/OECD standards.

From any perspective, Liechtenstein is not a major market participant, partly due to its small land area. However, Liechtenstein effectively focuses on its own advantages, prioritizing continuous development and growth in accordance with international standards, as well as meeting customer customization needs. For these reasons, I am confident that Liechtenstein's business will continue to thrive.

Through an exclusive interview with Roger Frick and on-the-spot investigation, Ying'an Investment chose to sign a long-term strategic agreement with ATU through its advantages based in Chinese Mainland, Shenzhen. At present, Allgemeines Treuundernehmen (ATU) has a complete trust system. Ying'an Investment, as a mainland partner, shares resources with ATU, exchanges information regularly, and is jointly responsible for the trust of investors!!