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

Related Articles
News

SEC Proposes to Improve Cross-Border Application of SBS Requirements

SEC proposed a package of rule amendments and interpretive guidance to improve the framework for regulating cross-border security-based swaps (SBS) transactions and market participants.

May 24, 2019 WebPage Regulatory News
News

US Agencies Propose to Amend Regulatory Framework for Foreign Banks

US Agencies (OCC, FED, and FDIC) proposed a regulatory framework for foreign banks operating in the U.S. that would more closely match the rules for foreign banks with the risks they pose to the U.S. financial system.

May 24, 2019 WebPage Regulatory News
News

FSB to Evaluate Effects of Too-Big-To-Fail Reforms for Systemic Banks

FSB is seeking feedback as part of its evaluation of the effects of the too-big-to-fail reforms for banks.

May 23, 2019 WebPage Regulatory News
News

OSFI Revises Covered Bond Limit Calculation for Deposit Takers

OSFI is updating the covered bond limit calculation, which was last revised in December 2014.

May 23, 2019 WebPage Regulatory News
News

APRA Releases Minor Changes to Reporting Standards on SA-CCR for Banks

APRA released minor changes to the three reporting standards for the standardized approach for measuring counterparty credit risk exposures (SA-CCR).

May 22, 2019 WebPage Regulatory News
News

APRA on Industry Self-Assessments into Governance and Accountability

APRA released an information paper analyzing the self-assessments performed by 36 of the country’s largest banks, insurers, and superannuation licensees in response to the final report on the Prudential Inquiry into the Commonwealth Bank of Australia (CBA).

May 22, 2019 WebPage Regulatory News
News

PRA Consults on Maintenance of TMTP Under Solvency II

PRA published a consultation paper (CP11/19) that sets out its approach to update supervisory statement (SS6/16) on maintenance of the transitional measure on technical provisions (TMTP) under Solvency II.

May 22, 2019 WebPage Regulatory News
News

EBA Regards Regulatory Framework in Argentina to be Equivalent to EU

EBA published its opinion that the supervisory and regulatory framework applicable to credit institutions in Argentina can be regarded as equivalent to that applied in EU.

May 22, 2019 WebPage Regulatory News
News

RBNZ Reviews Restrictions on Policy for Loan to Value Ratio

RBNZ published a report on the review of the loan to ratio (LVR) restrictions as part of a wider review of the macro-prudential policy.

May 22, 2019 WebPage Regulatory News
News

APRA Proposes to Amend Guidance on Residential Mortgage Lending

APRA is consulting on revisions to the prudential practice guide APG 223 on residential mortgage lending in Australia.

May 21, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3127