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

    APRA Consults on Standard for Reporting of COVID-19 Loans

    APRA issued a letter to authorized deposit-taking institutions announcing its intent to formalize the capital measures and reporting requirements for COVID-19 loans through temporary legislative instruments.

    August 13, 2020 WebPage Regulatory News
    News

    EBA Consults Industry on Use and Uptake of Regtech Solutions Across EU

    EBA is inviting relevant stakeholders, such as financial institutions and information and communication technology (ICT) third-party providers, to share their views and experience on the use of regtech solutions through its regtech industry survey.

    August 12, 2020 WebPage Regulatory News
    News

    FCA Finalizes Guidance to Extend Measures for Insurers Amid COVID

    FCA finalized the guidance extending measures to help customers that hold insurance and premium finance products and are in temporary financial difficulty because of COVID-19 crisis.

    August 12, 2020 WebPage Regulatory News
    News

    BoE Clarifies Approach to Treatment of Payment Holidays on Form PL

    BoE published a statistical notice (Notice 2020/9) explaining the approach for treatment of payment holidays on the profit and loss return or Form PL.

    August 11, 2020 WebPage Regulatory News
    News

    FASB to Conduct Post-Implementation Review of CECL Standard

    FASB announced the launch of its new Post-Implementation Review (PIR) web portal.

    August 11, 2020 WebPage Regulatory News
    News

    EBA Guidance on Impact of CRR Quick-Fix on Reporting and Disclosures

    EBA revised the draft implementing technical standards on supervisory reporting as part of the reporting framework 3.0.

    August 11, 2020 WebPage Regulatory News
    News

    ECB Examines ICAAP Practices of Banks in EU

    ECB published report that presents a summary of the analysis conducted on the internal capital adequacy assessment process (ICAAP) practices of a sample of 37 "significant" banks.

    August 11, 2020 WebPage Regulatory News
    News

    EC Proposes to Amend Rules for Financial Benchmarks

    EC published a proposal for a regulation that amends the Benchmarks Regulation (2016/1011) regarding the exemption of certain third-country foreign-exchange benchmarks and the designation of replacement benchmarks for certain benchmarks in cessation.

    August 11, 2020 WebPage Regulatory News
    News

    PRA Suspends Relevant Guidance Levels on Fixed Rate Lending Limits

    PRA published a letter from Mel Beaman, the Director for UK Deposit Takers, to suspend the relevant guidance levels on fixed rate lending limits in the “Specialist Sourcebook” for an initial period of six months, running from August 01, 2020 to January 31, 2021.

    August 11, 2020 WebPage Regulatory News
    News

    BoE Provides Reporting Update on Form AS and Form FV

    BoE updated the known issues document for the statistical reporting Forms AS and FV.

    August 10, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5671