Ms Frick sat on the board of directors of London-based K1 Fund Distribution from 6 August 2008 until 29 December, 2008 but resigned after four months "because her request for more information (about K1's activites) was not really met", Reuters quoted a spokesperson for the Vaduz government as saying.

The affair highlights how senior government officials have sometimes had a background in financial services, a fact that is often welcomed since such people bring experience of finance and investments to their political and administrative roles. Questions can sometimes arise, however, as to whether close ties between the banking world and politics can lead to government favouritism towards the financial sector.

Ms Frick became a director at K1 Fund Distribution due to her activity at the time with Liechtenstein-based financial services firm Fidaura Trust, reports said. Her official biography says she owned that firm.

K1 founder Helmut Kiener is suspected of fraud and breach of trust. Banks such as Barclays and BNP Paribas may have lost millions of dollars in the case.

Mr Kiener’s lawyers have denied he has committed any offences.