Staff
STIFA’s staff at the end of 2018 consisted of the Head of the Division and its Deputy.
Activity
At the beginning of 2018, 1’355 common-benefit foundations, five common-benefit establishments and 20 private-benefit foundations were subject to STIFA supervision. By the end of 2018, the figures had risen to 1’392 common-benefit foundations, five common-benefit establishments and 21 private-benefit foundations. 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, 2019 there was an outstanding of 128 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 2018, 150 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 13 cases (previous years: 12; 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 86 inspections there were 12 objections (previous years: 0; 3) and onr referral (previous years: 2; 1). In four cases the Court imposed fines, the others were out of the limitation period.
| Common-benefit foundations by year end 2018 (in brackets means exemption from the obligation to appoint an audit authority) |
1’392 (150) |
| 2017: 1’355 (156) 2016: 1’323 (162) 2015: 1’286 (164) 2014: 1’239 (166) |
|
| Total newly supervised (previous years) | 84 (80; 96; 103; 78) |
| Of whom established in 2018 (previous years) | 56 (39; 45; 81; 39) |
| Objections by audit authorities per accounting year 2017 (in brackets previous years) | 26 (48; 46; 30; 35) |
| Asset Management | 2 (4; 2; 2; 2) |
| Distribution of assets | 10 (19; 14; 9; 7) |
| Organization irregularities | 10 (6; 10; 9; 11) |
| Accounting irregularities | 3 (7; 17; 10; 14) |
| Foundation endangerment | 1 (2; 3; 0; 1) |
| Referrals by audit authorities per accounting year 2017 (in brackets previous years) | 111 (115; 99; 91; 83) |
| Creditworthiness of loan | 3 (3; 4; 4; 3) |
| Risk concentration | 1 (1; 1; 2; 2) |
| Distribution of assets | 35 (38; 30; 29; 35) |
| Lack of funds / over-indebtedness | 11 (16; 16; 11; 11) |
| Indirect activities via subsidiary | 4 (5; 5; 5; 6) |
| Change of domicile | 0 (1; 0; 0; 0) |
| Costs | 3 (1; 0; 0; 0) |
| Organization, accounting | 6 (3; 7; 10; 11) |
| Civil lawsuit | 7 (10; 7; 8; 4) |
| Criminal proceedings | 2 (4; 3; 3; 1) |
| Dissolution | 39 (33; 24; 18; 8) |
| Delayed registration | 0 (0; 1; 1; 2) |
| Objections by STIFA in 2018, 58 Inspections (in brackets previous years) | 15 (7; 8; 15; 14) |
| Asset management | 0 (1; 1; 1; 1) |
| Distribution of assets | 8 (3; 3; 7; 1) |
| Lack of organization | 6 (2; 3; 4; 1) |
| Lack of accounting | 0 (0; 0; 1; 2) |
| Revocation of exemption | 1 (1; 1; 1; 9) |
| Referrals by STIFA in 2018, 58 inspections (in brackets previous years) | 30 (24; 21; 21; 26) |
| Distribution of assets | 11 (7; 12; 8; 17) |
| Lack of funds / dissolution | 14 (11; 6; 12; 9) |
| Organization | 1 (2; 3; 0; 0) |
| Costs | 4 (4; 0; 0; 0) |
| Assets | 0 (0; 0; 1; 0) |
| Proceedings to appoint an audit authority (in brackets previous years) | 93 (95; 121; 120; 111) |
| Proceedings to exempt from the obligation to appoint an audit authority (in brackets previous years) | 23 (18; 28; 19; 18) |
| Supervisory measures under art. 552 ¶ 3 Persons and Company Law (PGR), STIFA is applicant (in brackets previous years) |
|
| Proceedings opened | 13 (12; 20; 15; 24; 23) |
| Proceedings closed | 12 (13; 22; 15; 22; 14) |
| Proceedings pending | 2 (2; 2; 3; 4; 9) |
| Of whom in appeal | 0 (1; 1; 0; 0; 0) |
| Supervisory measures under art. 552 ¶ 29 PGR, Applicant are foundation participants (in brackets previous years) |
|
| Proceedings opened | 3 (6; 1; 2; 4) |
| Proceedings closed | 5 (3; 4; 0; 0) |
| Proceedings pending | 4 (6; 3; 5; 4) |
| Of whom in appeal | 2 (1; 3; 1; 0) |
| Proceedings under art. 552 § 33 § 34 PGR, Alteration of purpose or statutes (in brackets previous years) |
|
| Proceedings opened | 4 (5; 1; 2; 4) |
| Proceedings closed | 4 (2; 0; 3; 4) |
| Proceedings pending | 4 (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) |
7 (1; 8; 0; 0) |
| Administrative assistance, art. 36 para 1 Due Diligence Law (in brackets previous years) | 0 (0; 3; 0; 0) |
| Verification of the deposited information of non registered foundations, art. 552 § 21 PGR, 11 representatives |
86 |
| 2017: 11 representatives inspected | 72 |
| 2016: 6 representatives inspected | 60 |
| 2015: 5 representatives inspected | 61 |
| 2014: 3 representatives 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