FINMA published a consultation on the draft of a new Financial Institutions Ordinance (FinIO-FINMA), along with draft amendments to the current ordinances and circulars. FINMA published the consultation with respect to the necessary implementation of the Financial Services Act (FinSA), the Financial Institutions Act (FinIA), and the Federal Council’s implementing ordinances (Financial Services Ordinance or FinSO, Financial Institutions Ordinance or FinIO, and Supervisory Organisations Ordinance or SOO) at the FINMA level. The consultation closes on April 09, 2020.
The draft of new FINMA ordinance regulates the details of professional indemnity insurance for portfolio managers, trustees, and managers of collective assets, the details on calculating the de minimis threshold for gaining authorization as a portfolio manager, and the details on risk management and internal control system for managers of collective assets. FINMA also issued draft amendments to the current ordinances and circulars, including the following:
- As a result of the transfer of the provisions on managers of collective assets and fund managers to the FinIA, a number of adjustments to the Collective Investment Schemes Ordinance (CISO-FINMA) will be required.
- Due to the discontinuation of the directly subordinated financial intermediary (DSFI) status, the Anti-Money Laundering Ordinance (AMLO-FINMA) also had to be adjusted.
- Furthermore, minor adjustments had to be made to the FINMA Collective Investment Schemes Bankruptcy Ordinance (CISBO-FINMA), with formal adjustments required to the FINMA Banking Insolvency Ordinance (BIO-FINMA) and the FINMA Financial Market Infrastructure Ordinance (FMIO-FINMA).
- The scope of FINMA Circular 2013/8 titled “Market conduct rules” has been adjusted to include portfolio managers, trustees, and managers of pension assets who are now subject to a FINMA authorization obligation.
- In FINMA Circular 2018/3 titled “Outsourcing–banks and insurers,” the administrative practice in respect of FinIA institutions (with the exception of portfolio managers and trustees) is now being specified.
- Other adjustments of a fairly minor nature were also made to the circulars on liquidity risk (2015/2), credit risk (2017/7), and accounting (2020/1) for banks.
- Circulars on securities dealers (2008/5), repo or securities lending and borrowing (SLB) transactions (2010/2), and distribution of collective investment schemes (2013/9) are being rescinded, as these are being made unnecessary by the FinSA and the FinIA.
Additionally, FINMA proposed to amend the client identification threshold values in its AMLO-FINMA from CHF 5,000 to CHF 1,000 for exchange transactions in cryptocurrencies. Through these measures, FINMA is implementing the international standards approved in mid-2019 and acknowledging the heightened money-laundering risks in this area.
- Press Release and Related Documents
- Key Points on Consultation (PDF)
- Draft FinIO-FINMA (PDF in German)
- Draft Amendments to FINMA Circulars (PDF in German)
Comment Due Date: April 09, 2020
Keywords: Europe, Switzerland, Banking, Securities, Insurance, Pensions, Proportionality, Credit Risk, Liquidity Risk, FINSA, FinIO-FINMA, Cryptocurrency, FINMA
The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).
The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.
The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.
The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.
The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.
The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.