Featured Product

    FINMA Consults on Financial Institutions Ordinance and Other Proposals

    February 07, 2020

    FINMA published a consultation on the draft of a new Financial Institutions Ordinance (FinIO-FINMA), along with draft amendments to the current ordinances and circulars. FINMA published the consultation with respect to the necessary implementation of the Financial Services Act (FinSA), the Financial Institutions Act (FinIA), and the Federal Council’s implementing ordinances (Financial Services Ordinance or FinSO, Financial Institutions Ordinance or FinIO, and Supervisory Organisations Ordinance or SOO) at the FINMA level. The consultation closes on April 09, 2020.

    The draft of new FINMA ordinance regulates the details of professional indemnity insurance for portfolio managers, trustees, and managers of collective assets, the details on calculating the de minimis threshold for gaining authorization as a portfolio manager, and the details on risk management and internal control system for managers of collective assets. FINMA also issued draft amendments to the current ordinances and circulars, including the following:

    • As a result of the transfer of the provisions on managers of collective assets and fund managers to the FinIA, a number of adjustments to the Collective Investment Schemes Ordinance (CISO-FINMA) will be required.
    • Due to the discontinuation of the directly subordinated financial intermediary (DSFI) status, the Anti-Money Laundering Ordinance (AMLO-FINMA) also had to be adjusted. 
    • Furthermore, minor adjustments had to be made to the FINMA Collective Investment Schemes Bankruptcy Ordinance (CISBO-FINMA), with formal adjustments required to the FINMA Banking Insolvency Ordinance (BIO-FINMA) and the FINMA Financial Market Infrastructure Ordinance (FMIO-FINMA).
    • The scope of FINMA Circular 2013/8 titled “Market conduct rules” has been adjusted to include portfolio managers, trustees, and managers of pension assets who are now subject to a FINMA authorization obligation.
    • In FINMA Circular 2018/3 titled “Outsourcing–banks and insurers,” the administrative practice in respect of FinIA institutions (with the exception of portfolio managers and trustees) is now being specified.
    • Other adjustments of a fairly minor nature were also made to the circulars on liquidity risk (2015/2), credit risk (2017/7), and accounting (2020/1) for banks.
    • Circulars on securities dealers (2008/5), repo or securities lending and borrowing (SLB) transactions (2010/2), and distribution of collective investment schemes (2013/9) are being rescinded, as these are being made unnecessary by the FinSA and the FinIA.

    Additionally, FINMA proposed to amend the client identification threshold values in its AMLO-FINMA from CHF 5,000 to CHF 1,000 for exchange transactions in cryptocurrencies. Through these measures, FINMA is implementing the international standards approved in mid-2019 and acknowledging the heightened money-laundering risks in this area. 

     

    Related Links

    Comment Due Date: April 09, 2020

    Keywords: Europe, Switzerland, Banking, Securities, Insurance, Pensions, Proportionality, Credit Risk, Liquidity Risk, FINSA, FinIO-FINMA, Cryptocurrency, FINMA

    Featured Experts
    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    FSB and NGFS Publish Initial Findings from Climate Scenario Analyses

    The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.

    November 15, 2022 WebPage Regulatory News
    News

    FSB Issues Reports on NBFI and Liquidity in Government Bonds

    The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.

    November 14, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    EU Finalizes Rules Under Crowdfunding Service Providers Regulation

    The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.

    November 08, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8596