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"The market has for sure been affected by the financial market, though we did a little better than other markets, all the banks had turned down [transactions], and we're now in a transition period, we'll see how we're going to develop."This view of the market by one partner highlights where Liechtenstein finds itself in the post financial crisis world....

"The market has for sure been affected by the financial market, though we did a little better than other markets, all the banks had turned down [transactions], and we're now in a transition period, we'll see how we're going to develop."

This view of the market by one partner highlights where Liechtenstein finds itself in the post financial crisis world. The country's financial system remains relatively healthy, having not had the exposure to the toxic instruments that were the cause of much of the market distress. Capital markets also remain healthy and generally the jurisdiction has come through the last few years well.

However one consequence of the downturn that did hit home is how the international community viewed the jurisdiction. With regulation and transparency the order of the day, Liechtenstein's business practices and confidentiality regime have come under the microscope. It remains to be seen whether, like Switzerland, the country will be forced to provide more data in future on those who hold secretive bank accounts in the jurisdiction.

In truth, more disclosure is already being seen in the wake of the country's new tax regime, which came in in 2009. Essentially, companies pursuing commercial purposes will no longer benefit from the country's low tax regime, which will no doubt effect company redomiciliations. "The companies pursuing commercial purposes no longer get a favourable tax treatment which was before, normally, paying nothing or a lump sum of 1000 Swiss Francs, which is nothing," explains one partner. "I assume it will lead to a sharp decline in relation to work from this kind of company. In relation to other companies, for example like holding companies, they carry on as before."

Another partner agrees: "I'd expect rather a decrease [in work] in total and also in the past two years, there has been an substantial decrease of offshore companies [relocating] due to the huge developments about Liechtenstein, whether Liechtenstein will have tax information agreements or not and so on and this for sure will cause a lot of uncertainty."