Featured Product

    Swiss Federal Council Discusses Sustainability in Financial Sector

    June 26, 2020

    During its meeting on June 24, 2020, the Swiss Federal Council adopted a report and guidelines on sustainability in the financial sector. The report provides an overview of the international developments and the position of Switzerland with respect to sustainable finance. The report focuses on environmental aspects and examines thirteen measures for sustainability in the financial sector in detail, some of which are also being discussed in the EU. The measures primarily concern transparency, investment activities, training and further education, and risks. The Federal Council has published corresponding guidelines based on the report presented. In addition, FINMA notified that it is addressing the subject of climate-related financial risks as part of its supervisory remit. It is also reviewing regulatory approaches for improved transparency regarding climate-related financial risks by major financial institutions.

    Federal Council wants to review the regulatory framework for optimization potential, expand its international commitment, and intensify exchanges with the parties involved. To achieve the aim of making Switzerland a leading location for sustainable financial services, the Federal Council wants to shape the framework conditions to improve competitiveness of the financial center in Switzerland while ensuring that the financial sector can make an effective contribution to sustainability. The framework conditions for the Swiss financial center in the area of sustainability have been identified and will be further developed by the end of 2020. These include the following:

    • Information for market participants—Environmental and climate information for financial products and companies, including financial institutions, should be made available to all market participants in a systematic and comparable way.
    • Quality of information—The chosen reporting standard is to be measured against the traceable and effective achievement of sustainability goals in accordance with the 2030 Agenda reference framework.
    • Quality of service—Informed advice, a high level of training and further education in the sector, and products that are efficiently and effectively geared to achieving sustainability goals are key factors on the supply side.
    • Innovation—In general, including in the three areas mentioned above, the use of digital business and analysis models plays a central role.
    • Risk pricing—Financial risks from environmental and climate developments must be identified. This also includes the long-term perspective and developments during the transition and adaptation phase.
    • Exportability—International developments, especially in EU, must be closely monitored to identify at an early stage which steps are necessary to maintain competitiveness. Switzerland remains committed to the exportability of high-quality financial services, which makes the sustainability of Swiss financial services transparent in the international context.

     

    Related Links

    Keywords: Europe, Switzerland, Banking, Insurance, Securities, Sustainable Finance, ESG, Climate Change Risk, FINMA, Swiss Federal Council

    Related Articles
    News

    EBA Finalizes Remuneration Standards for Investment Firms in EU

    EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).

    January 21, 2021 WebPage Regulatory News
    News

    ECA Recommends Actions to Enhance Resolution Planning for Banks

    EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.

    January 20, 2021 WebPage Regulatory News
    News

    BoE Publishes Key Elements of the 2021 Stress Testing for Banks in UK

    BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.

    January 20, 2021 WebPage Regulatory News
    News

    PRA Proposes Rules on Identity Verification of Depositor Protection

    PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).

    January 20, 2021 WebPage Regulatory News
    News

    FSB Publishes Work Program for 2021

    FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.

    January 20, 2021 WebPage Regulatory News
    News

    FCA Issues Update on Move to New Data Collection Platform

    FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.

    January 20, 2021 WebPage Regulatory News
    News

    Bundesbank Publishes Derivation Rules for Reporting by Banks

    Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.

    January 19, 2021 WebPage Regulatory News
    News

    FED Revises Capital Planning and Stress Testing Requirements for Banks

    FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.

    January 19, 2021 WebPage Regulatory News
    News

    ECB Releases Results of Bank Lending Survey for Fourth Quarter of 2020

    ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.

    January 19, 2021 WebPage Regulatory News
    News

    ESAs Publish Reporting Templates for Financial Conglomerates

    ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.

    January 18, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6484