In 2013, the Central Bank of the Republic of San Marino signed a cooperation agreement (Memorandum of Understanding) in the field of banking and financial supervision, entered into with the equivalent Authority of Liechtenstein, the Financial Market Authority (FMA).
Purpose of the Memorandum of Understanding is to foster and consolidate the financial relations between the two countries, by acting as technical-regulatory basis for the cross-border establishment of branches and representative offices of intermediaries already authorised in their respective jurisdictions, and for the establishment or acquisition of financial entities by the operators active in the other country.
In line with the principles of supervision shared at an international level, the final decision about the request for authorisation to operate in its territory filed by the foreign entity, is, in any case, the responsibility of the Authority of the Host country.
The memorandum of understanding regulates the procedures for the exchange of information between the CBSM and the FMA regarding the different options available for cross border operations, by providing for specific procedures for the interaction between the two authorities concerning the actions, including inspections, to be adopted regarding the cross-border establishments.
This agreement opens up new possibilities for all authorised parties of San Marino, which will also be able to assess the opportunity to become international, according to tailored procedures based on their capital, technical-professional and organisational capabilities (such as by means of the acquisition of equity interests, the establishment of joint ventures, the opening of branches, etc.).
More structured initiatives, such as the establishment of new authorised parties, may represent a first step towards the expansion of the reference markets taking into account that Liechtenstein is included in the European Economic Area.
Further information on the FMA and on the structure of the financial market in Liechtenstein are available on the internet website.