In accordance with EU directives, Art. 7 of the Liechtenstein Banking Act (BankG) contains provisions on the guarantee of bank deposits and the protection of investors. The law requires banks and other financial service providers to ensure adequate protection of deposits and investments with supervised financial service providers by establishing separate organisations or by participating in foreign protection schemes.
In 2001, the Liechtenstein Bankers Association (LBA) decided to implement an autonomous solution and is the Founder of the "Deposit Guarantee and Investor Compensation Foundation PCC" (EAS). As a combined protection organisation, the EAS is an autonomous foundation under Liechtenstein law in the form of a protected cell company.
In the event of default of a bank or other financial service provider that is in an pre-existing contractual relationship with the foundation, the foundation has assumed the responsibility to compensate their clients up to a certain maximum amount.
A single, combined protection organisation would suit best the specific needs and requirements of the financial centre. The EAS is a member of IADI (International Association of Deposit Insurers) and EFDI (European Forum of Deposit Insurers). The EAS makes as Liechtenstein's only protection organisation a significant contribution to creditor protection and to the reputation and stability of the Liechtenstein financial centre.