Featured Product

    FINMA Consults on Changes to Practices Related to Fintech Supervision

    March 15, 2019

    The Swiss Financial Market Supervisory Authority FINMA announced that the Swiss parliament has introduced a new licensing category for fintech companies. Furthermore, the Federal Council has adjusted the provisions concerning the sandbox. These changes require a corresponding adjustment of the supervisory practices of FINMA. To this end, FINMA is conducting a consultation exercise through Circulars 2008/3 titled “Public deposits with non-banks” and 2013/3 titled “Auditing.” The consultation ends on May 15, 2019. The partially revised circulars are expected to enter into force in Autumn 2019.

    On January 01, 2019, the Swiss parliament introduced a new licensing category known as the "FinTech license." Consequently, FINMA is adding the requirements for the regulatory auditing of companies in this new licensing category to its Auditing circular. The requirements for fintech companies are based on the established auditing of banks and securities dealers, but the audit is less extensive and the reporting process simpler, while focusing on the risks specific to the fintech business models. In addition,  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 its amendment to the “Public deposits with non-banks” circular, FINMA sets out its interpretation of the term “interest rate differential business.” By doing so, it is increasing the legal certainty for those who wish to make use of the sandbox in the future.


    Related Link: Press Release and Related Documents

    Comment Due Date: May 15, 2019

    Keywords: Europe, Switzerland, Banking, Securities, Fintech, Fintech License, Regulatory Sandbox, Reporting, FINMA

    Featured Experts
    Related Articles
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    EC to Defer Application of SFDR Standards Till July 2022

    The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.

    July 23, 2021 WebPage Regulatory News
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    News

    US Agencies Propose Changes to Call Reports and Instructions

    Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.

    July 22, 2021 WebPage Regulatory News
    News

    PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker

    The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Examines Asset Encumbrance in Banking Sector

    The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.

    July 21, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7291