Featured Product

    FINMA Revises Practices in Relation to Supervision of Fintech Firms

    June 28, 2019

    The Swiss Financial Market Supervisory Authority FINMA has introduced a new licensing category for fintech companies and is revising the regulatory sandbox provisions. These developments require certain technical adjustments in supervisory practice and, in this context, FINMA is publishing the partially revised Circulars 2008/3 "Public Non-bank Deposits" and 2013/3 "Auditing." These circulars enter into force on July 01, 2019.

    Circular 2013/3, in the sense of a risk-oriented supervisory concept, regulates the audit of supervised institutions by the audit companies as an extended arm of FINMA. FINMA supplemented its circular on auditing with the requirements of the regulatory review of companies in the new authorization category of fintech license. It provided some simplification of the risk analysis and audit strategy for these institutions when compared to larger or more complex companies. On the basis of the comments received on the consultation that ended on May 15, 2019, FINMA supplemented and clarified the circular and specified an annual compliance check with regard to the lack of deposit privilege. 

    In addition, the scope of Circular 2008/3 "Public Non-bank Deposits is only for banks that are supervised by FINMA under the Banking Act (with a few exceptions). The circular is related to the commercial acceptance of deposits by non-banks within the meaning of the Banking Act. With effect from April 01, 2019, the Federal Council is making changes to the provisions related to the sandbox. It is possible to invest deposits received up to CHF 1 million within the sandbox. However, operating in the so-called interest rate differential business is prohibited and remains the privilege of banks. In the proposed amendment to the “Public deposits with non-banks” circular, FINMA had set out its interpretation of the term “interest rate differential business.” Doing so can increase the legal certainty for those who wish to make use of the sandbox in the future.

     

    Related Links

    Effective Date: July 01, 2019 

    Keywords: Europe, Switzerland, Banking, Securities, Fintech, Fintech License, Regulatory Sandbox, Circular 2008/3, Circular 2013/3, FINMA

    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    BIS Bulletins Discuss DeFi Lending and Aspects of Crypto-Assets

    The Bank for International Settlements (BIS) published bulletins on lending in decentralized finance (DeFi) system, on blockchain scalability and fragmentation of crypto, and on extractable value and market manipulation in crypto and decentralized finance.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8292