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49-1024: LGT is headquartered in Vaduz, Liechtenstein , with a key presence in Zürich, Switzerland . The company maintains 3,405 employees in over 20 offices around the globe, Asia , Australia , Europe , the Middle East and North America . LGT operates through several divisions: The company has made several acquisitions of high value transactions. In 2009, it acquired the Swiss operation of Dresdner Bank from Commerzbank , following this in 2015 it acquired more than $ 12 billion of HSBC Private assets and in 2017 it acquired Dutch giant ABN AMRO Asia Private with $ 20 billion in assets. The ABN AMRO transaction meant that LGT now had more assets under management in Asia than it did in Europe. The founding of

98-541: A former employee or contractor of the bank. Information was also forwarded to many other European states and Australia, leading to successful investigations there. For its involvement in the affair, LGT agreed to a settlement with a fine of €50 million. Rating : Standard & Poor's / Moody's (2017) Vaduz, Liechtenstein Vaduz ( German pronunciation: [faˈdʊt͡s] or [faˈduːt͡s] , High Alemannic pronunciation: [ faˈdot͡s ])

147-571: A lower price than traditional private banking. These are called premium banking or priority banking services. They are meant for mass-affluent customers. The accounts do not generate as much revenue as traditional private banking, but given the number of customers, can provide sizeable revenue to the bank. In 2016, Credit Suisse and UBS replaced the phrase "private banking" with "wealth management"; private banking has faced reputational risk as an area for tax avoidance or even tax evasion . Private banking services are only accessible to customers with

196-687: A majority stake in London-based wealth management partnership Vestra Wealth (2016), the private banking operations of ABN AMRO Asia in Asia and the Middle East (2016) and European Capital Fund Management (2017). In 2019, LGT opened a branch in Thailand (LGT Securities Thailand) and also entered the Indian market through the acquisition of a majority stake in Validus Wealth (FDI approval pending). Later that year,

245-475: A minimum amount of investible assets. For instance, in 2016, J.P. Morgan began requiring a minimum of $ 10 million in assets to qualify for private banking, with those with less being moved into their Private Client Direct program. Nevertheless, this seems to be an exception as a majority of banks establish the minimum threshold between $ 500,000 and $ 1 million. Indeed, private banking customers are frequently segmented according to their wealth. HNW are customers with

294-442: A more personal basis than in mass-market retail banking , usually provided via dedicated bank advisers. It has typically consisted of banking services (deposit taking and payments), discretionary asset management, brokerage, limited tax advisory services and some basic concierge services, typically offered through a gateway provided by a single designated relationship manager. Banking originated in provision of some services of what

343-831: A national level until 1984. The incumbent mayor is Florian Meier , elected in the 2024 Vaduz mayoral by-election . Vaduz features an oceanic climate with warm summers and chilly winters. Köppen-Geiger climate classification system classifies its climate as Marine West Coast Climate (Cfb). The city experiences a noticeable increase in precipitation during the summer, but in general all twelve months see some precipitation. Vaduz receives, on average, approximately 900 mm (35 in) of precipitation per year. Vaduz's warmest month, July, sees average high temperatures reach 25 °C (77 °F) while average low temperatures are about 14 °C (57 °F). The city's coldest month, January, sees average highs of 3 °C (37 °F) and average lows of −3 °C (27 °F). Vaduz Castle

392-424: A niche that only caters to HNWIs—specifically those with liquidity over $ 2 million, though it is now possible to open private banking accounts with as little as $ 250,000 for private investors. An institution's private banking division provides services such as wealth management, savings, inheritance, and tax planning for their clients. For private banking services, clients pay either based on the number of transactions,

441-608: A total worth between €500,000 and €5 million; very high net worth individuals (VHNWI), with assets ranging between €5 million and €30 million; and ultra high net worth individuals (UHNWI), with wealth in excess of €30 million. In terms of AUM, the world's 10 largest private banks (or private banking divisions/subsidiaries of large bank holding companies ), as of 2019, are: Results from Euromoney's annual private banking and wealth management ranking in 2019, which consider, amongst other factors, assets under management (AUM), net income and net new assets. UBS Global Wealth Management took

490-870: Is a criminal offence in Switzerland, tax evasion is only a civil offence , not requiring banks to notify taxing authorities. In Switzerland, there are many banks providing private banking services. Switzerland has remained neutral since the Congress of Vienna in 1815, including through two World Wars. After World War I, the former nobles of Austro-Hungarian Empire moved their assets to Switzerland for fear of confiscation by new governments. During World War II, many wealthy people, including Jewish families and institutions, moved their assets into Switzerland to protect them from Nazi Germany. However, this transfer of wealth into Switzerland had mixed and controversial results, as beneficiaries had difficulties retrieving their assets after

539-457: Is a general description for banking , investment and other financial services provided by banks and financial institutions primarily serving high-net-worth individuals (HNWIs) – those with very high income or substantial assets. Private banking is presented by those who provide such services as an exclusive subset of wealth management services, provided to particularly affluent clients. The term "private" refers to customer service rendered on

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588-551: Is a museum of modern and contemporary art, and also shows displays from the private princely Liechtenstein Collection , the main public display of which is in Vienna . The building is an architectural landmark built by the Swiss architects Morger, Degelo and Kerez. It was completed in November 2000 and forms a "black box" of tinted concrete and black basalt stone. The museum collection is also

637-463: Is now seen as "private" banking. Early Venetian banks provided personal finance for wealthy families. Private banks came to be known as "private" to stand out from the retail banking and savings banks aimed at the new middle class . Traditionally, private banks were linked to families for several generations. They often advised and performed all financial and banking services for these families. Historically, private banking has developed in Europe (see

686-555: Is of Romance origin. The name can be traced back to Old Rhaeto-Romance root auadutg ' aqueduct ' , which in turn evolved from the Latin aquaeductus . Vaduz is mentioned in historic 12th-century manuscripts as Faduzes . In 1322 a mention of the castle is made, which was sacked by the Swiss in 1499 during the Swabian War . The entire city was also destroyed. In the 17th century

735-522: Is the capital of Liechtenstein and also the seat of the national parliament . The city, which is located along the Rhine , has 5,696 residents. The most prominent landmark of Vaduz is Vaduz Castle , perched atop a steep hill overlooking the city. It is home to the reigning prince of Liechtenstein and the Liechtenstein princely family . The city's distinctive architecture is also displayed in landmarks such as

784-454: Is the home of the reigning prince of Liechtenstein and the Liechtenstein princely family . The castle is visible from almost any location in Vaduz, being perched atop a steep hill in the middle of the city. The Cathedral of St. Florin , Government House and City Hall display the various styles and periods of architecture in the city. As of 2019, 5,696 people lived in Vaduz. Foreigners resident in

833-442: Is unbiased. They believe there is no incentive to push proprietary products, and the client gets the best of what they offer. A few banks claim to have a "strong advisory team" that reflects in the products they offer the client. A couple of banks also define their value proposition on their unified platform, their ability to comply with all regulations, yet serve the client without restrictions. Open architecture product platform

882-445: Is where a private bank distributes all the third party products and is not restricted to selling only its proprietary products. Closed architecture product platform is where the bank sells only its proprietary products and does not entertain any third party product. These days the needs of the clients are so diverse that it is practically impossible for a bank to cater to those needs by its proprietary products alone. Clients today demand

931-628: The Cathedral of St. Florin , Government House, City Hall, the National Art Gallery, as well as the National Museum. Although Vaduz is the best-known town in the principality internationally, it is not the largest; neighbouring Schaan has a larger population. The name Vaduz had been first recorded as de Faduzes . The name of the settlement, like most other towns in the Rhine Valley region,

980-566: The Feldkirch–Buchs railway . It was opened on 24 October 1872 by agreement with Austria-Hungary and Switzerland. There have been attempts to expand the rail network to connect with Vaduz, though these have been unsuccessful. Vaduz has two primary schools: Äule Primary School, near the Vaduzer-Saal; and Ebenholz Primary School, near the University of Liechtenstein , which is also located in

1029-596: The Holy Roman Emperor himself, without any intermediate feudal patronage. After some time, the family was able to arrange the purchase of the minuscule Herrschaft ("Lordship") of Schellenberg and the countship of Vaduz (in 1699 and 1712, respectively) from the Hohenems. Tiny Schellenberg and Vaduz possessed exactly the political status required: no feudal lord other than the Emperor. Thereby, on 23 January 1719, after

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1078-527: The Liechtenstein family was seeking a seat in the Imperial diet, the Reichstag . However, since they did not hold any territory that was directly under the Imperial throne, they were unable to meet the primary requirement to qualify. The family yearned for the added power a seat in the Imperial government would bring, and therefore sought to acquire lands that would be reichsunmittelbar , or held directly from

1127-752: The List of private banks ). Some banks in Europe are known for managing the assets of some royal families. The assets of the Princely Family of Liechtenstein are managed by LGT Group (founded in 1920 and originally known as The Liechtenstein Global Trust). The assets of the Dutch royal family are managed by MeesPierson (founded in 1720). The assets of the British Royal Family are managed by Coutts (founded in 1692). Historically, private banking has been viewed as

1176-570: The "parent brand" to gain a client’s trust and confidence. These banks have a strong presence across the globe and present private bank offerings as a part of the parent group. "One Bank approach" is where private banks offer an integrated proposition to meet clients personal and business needs. Since private banking concerns understanding a client’s need and risk appetite, and tailoring the solution accordingly, few banks define their value proposition along this dimension. Most modern private banks follow an open product platform, and hence claim their advice

1225-466: The 17th century, in parallel with the development of sophisticated agriculture, managing the assets of the royal family, nobility and the landed gentry. The United States has one of the largest private banking systems in the world, in part due to the 3.1 million HNWIs accounting for 28.6% of the global HNWIs population in 2010, according to the co-research of Capgemini and Merrill Lynch . Some American banks that specialize in private banking date back to

1274-470: The 1960s, the bank’s main focus was to support and provide financing for the expansion of Liechtenstein’s economy and business sector. BIL did so primarily through the provision of financial services and loans. Over time, however, the commercial opportunities available to it in the local economy became too narrow, leading it to grow its operations to become an international commercial bank. Following this transformation, BIL began to expand into various segments of

1323-492: The 19th century, such as U.S. Trust (founded in 1853) and Northern Trust (founded in 1889). Internationalisation of the economy, technological developments such as the internet and mobile phones ensure that banks have to innovate and look for new markets . For example, the growth of HNWIs is low in traditional private banking markets such as Europe, compared with Asia where the number of millionaires has grown to 3.6 million. Banks also provide some private banking services at

1372-555: The Swiss operation of Dresdner Bank . In 2011, it sold LGT Bank Deutschland & Co. OHG. In the years that followed, LGT opened a branch in Salzburg, Austria (2012), as well as LGT Middle East in Dubai (2013). Between 2012 and 2017, LGT acquired several new portfolios and operations, including Clariden Leu’s ILS boutique (2012), a private banking portfolio from HSBC in Switzerland (2014),

1421-640: The Werdenberger-Binnenkanal bridge for motor vehicles, which was opened in 1975. Buses can be taken from Buchs, St. Gallen , Sevelen and Feldkirch into Vaduz. These buses typically run every 20 to 40 minutes and are operated by Liechtenstein Bus . Schaan-Vaduz railway station , located in Schaan, is the closest railway station to Vaduz. It is operated by the Austrian Federal Railways as part as

1470-419: The annual portfolio performance or a "flat-fee", usually calculated as a yearly percentage of the total investment amount. "Private" can also allude to bank secrecy and minimizing taxes through careful allocation of assets, or by hiding assets from the taxing authorities. Swiss and certain offshore banks have been criticized for such cooperation with individuals practising tax evasion. Although tax fraud

1519-587: The bank happened during an economical shift in Europe. The Austrian currency was legal tender in Liechtenstein, but after the collapse of the Austro-Hungarian Empire , its currency plummeted. The Swiss franc was introduced in 1919, and became legal tender in Liechtenstein in 1924 (plans for a national currency were dropped). The Bank of Liechtenstein Aktiengesellschaft (renamed LGT Group in 1996)

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1568-709: The banking industry, with a particular focus on activities pertaining to mortgages, stock markets and foreign exchange. In 1970, the bank's share capital was taken over by the recently established Prince of Liechtenstein Foundation . During the 1980s, BIL opened representative offices in Europe, the US and Asia, including in London, which was its first foreign business base, and in Hong Kong in 1986. In 1986, BIL went public and in 1989, acquired GT Management PLC in London. In 1990, BIL GT Group AG

1617-447: The best of breed products and most banks have to follow an open architecture product platform where they distribute products of other banks to their clients in return for commission. Products offered to private banking clients include equities, fixed-income securities, structured products, foreign exchange, commodities, deposits and real-estate investments. Different banks charge their clients in different ways. There are banks that follow

1666-462: The city make up 42% of the population. With 67% the population is predominantly Roman Catholic , while the percentage of Catholics is significantly higher among residents with Liechtenstein nationality (81%) than among foreigner residents (47%). The largest minority religions in the city are Protestantism (10%) and Islam (8%). The National Art Gallery as well as the National Museum are located in Vaduz. The art gallery ( Kunstmuseum Liechtenstein )

1715-886: The city. Both schools have the same secretariat and administration. The school assignments of children are largely determined by their street addresses. There are four kindergarten sites, of the Kindergarten Bartlegrosch, in Vaduz. Realschule Vaduz and Oberschule Vaduz are in the Schulzentrum Mühleholz II in Vaduz. Liechtensteinisches Gymnasium is also located in Vaduz. Realschule Schaan and Sportschule Liechtenstein are in nearby Schaan. [REDACTED] Media related to Vaduz at Wikimedia Commons Iceland : Reykjavík [REDACTED] Liechtenstein : Vaduz [REDACTED] Norway : Oslo [REDACTED] Switzerland : Bern [REDACTED] Private banking Private banking

1764-531: The country's banking specialty towards offshore holding assets management, and pulling significant economic traction from this activity. In May 1921, BIL launched its operations with 10 employees based in ground-floor offices inside the main government building. During the global economic crisis in the 1930s, the Princely House of Liechtenstein acquired a controlling interest in the bank. The bank survived World War II thanks to "prudent business practices." Until

1813-579: The group acquired Aspada, a leading India-focused investment fund which was previously owned by the Soros Economic Development Fund (SEDF) as a sole shareholder, to expand its impact investing platform LGT Lightstone. In December 2021, LGT acquired the Australia-based firm Crestone Wealth Management (former UBS Wealth Management Australia until 2016, approximately AUD$ 25 billion in assets under management) for $ 338 millions. The acquisition

1862-401: The municipal law was revised which extended term of the mayor and council to four years and increased the seats of Vaduz's municipal council to twelve. The system to elect the municipal council was changed to use a open list proportional representation system. In 1976, Vaduz replaced universal male suffrage with universal suffrage . Universal suffrage was not introduced to Liechtenstein on

1911-466: The national art collection of Liechtenstein. The Liechtenstein National Museum is showing a permanent exhibition on the cultural and natural history of Liechtenstein as well as special exhibitions. There are also the Postage Stamp Museum and a Ski Museum. Vaduz has a kind of folksong that has been greatly influenced by Switzerland, known as Köpugeäng . Vaduz is one of the few capital cities in

1960-476: The purchase had been duly made, Charles VI, Holy Roman Emperor , decreed Vaduz and Schellenberg were united, and raised to the dignity of Fürstentum ( principality ) with the name "Liechtenstein" in honour of "[his] true servant, Anton Florian of Liechtenstein ". It is on this date that Liechtenstein became a sovereign member state of the Holy Roman Empire . As testimony to the pure political expediency of

2009-609: The purchases, the Princes of Liechtenstein did not set foot in their new principality for over 120 years. Vaduz is located in the Oberland electoral district, and has three seats in the Landtag of Liechtenstein . Since the introduction of Liechtenstein municipal law of 1864, Vaduz has been locally administered by a mayor and municipal council. Until 1941, this consisted of the mayor, the municipal treasurer, and seven other councillors. In 1975,

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2058-589: The top spot in Euromoney's 2019 survey for "Best private banking services overall 2019". This table displays results of one category of the private banking ranking, "Best global private banking services overall 2019". Most private banks define their value proposition along one or two dimensions, and meet the basic needs across others. Some of the dimensions of value proposition of a private bank are parent brand, one-bank approach, unbiased advice, strong research and advisory team and unified platform. Many banks leverage

2107-401: The transactional model where the client is not charged any advisory fee at all. The banks thrive totally on the commissions they get by distributing third party products. There are other private banks that follow a hybrid model. In this model, the bank charges a fixed fee for certain products and advisory fee for the rest. Some of the other banks are totally advisory driven and charge the clients

2156-477: The war. After World War II, in eastern Europe, assets were again moved into Switzerland for fear of confiscation by communist governments. Today, Switzerland remains the largest offshore center, with about 27% ($ 2.0 trillion) of global offshore wealth in 2009, according to Boston Consulting Group . Offshore wealth is defined as assets booked in a country where the investor has no legal residence or tax domicile. In Great Britain , private banks were established in

2205-777: The world to not have an airport. The closest major airport is Zurich Airport , and the closest minor airport being the St. Gallen–Altenrhein Airport . Friedrichshafen Airport also provides access to Vaduz. By car, Vaduz is directly accessible via the A13 motorway in Switzerland, or via the A14 motorway in Austria. Vaduz is connected to Switzerland over the Rhine river by the Vaduz–Sevelen footbridge  [ de ] , or

2254-469: Was completed in 2022. The German tax authorities commenced numerous audits and prosecutions for tax fraud in the tax haven of Liechtenstein, based on information on a compact disc acquired by the German secret service Bundesnachrichtendienst . The CD, containing large amounts of information on accounts held by German citizens and other nationals with the bank, was allegedly obtained for a sum of €4 million from

2303-757: Was founded and H.S.H. Prince Philipp became Chairman of the Board of Directors. Six years later, BIL GT Group was renamed Liechtenstein Global Trust and BIL became LGT Bank in Liechtenstein AG. In 1998, the GT Asset Management division was sold and the bank went private. It was then that LGT decided to focus on private banking and asset management and to further expand its international operations. In 2003, LGT acquired Schweizerische Treuhandgesellschaft STG from Swiss Life , opened LGT Bank Deutschland & Co. OHG and

2352-485: Was founded in 1920 during this reorientation phase, and its first objective was to gather capital in Swiss francs. The Anglo-Austrian Bank was granted the licence to operate the structure, and was the majority stakeholder. Count Karl Trauttmanssdorf was its first chairman. The BIL enabled companies and banks of Liechtenstein to consolidate their holding companies abroad after the Austro-Hungarian debacle, thus orienting

2401-515: Was granted a banking license in Singapore . Over the next four years, it launched LGT Bank Switzerland and opened LGT Bank Österreich. In 2006, H.S.H. Prince Maximilian of Liechtenstein became CEO. LGT Venture Philanthropy, an independent charitable foundation, was founded in 2007, on the initiative of LGT CEO H.S.H. Prince Max von und zu Liechtenstein. In 2009, LGT sold its trust and fiduciary division (LGT Treuhand) to First Advisory Group and acquired

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