Liechtenstein FMA bans dubious TGI from three gold products

“TGI AG provides deposit business with these products without the necessary authorization from the FMA,” says the Vaduz authority. “In addition, the further holding of third-party funds received as part of the products was ordered to be discontinued within four months of delivery of the order.” However, the order is not yet legally binding. In the end, this will probably mean that TGI AG will have to reverse three of its four products if it becomes legally binding.

That’s what the company says

“TGI AG emphatically rejects this accusation. The company sells physical fine gold to its customers – a trading transaction that does not require approval from the financial market supervisory authority in Liechtenstein as in the entire EEA,” said the company. “TGI AG will have the order legally reviewed within the appeal period and take the necessary legal remedies.” What is very important is “the correct classification of the scope of the order. The business activities of TGI AG were not completely prohibited. The product “Fine gold bars – Customer Basic 2% + loyalty discount” is not covered by the regulation and is available to customers unchanged.”

“85 percent of the entire portfolio has not been criticized. And the other 15 percent, if the customer wants, we handle. That’s no problem at all. We just don’t want the customer to lose the discounts,” Kaltenegger tells KURIER. “And that’s why we offer the customer that they can stay in the contract, we just have to upgrade it because the contracts cannot have the option of termination. That was criticized. And if the customer agrees that there is no option of termination, then everything is fine, we offer that to the customer.” Addendum: “A reversal, that sounds bad to us, would of course be the cheapest form for TGI, because unfortunately everyone loses all of their discount commissions.”