New Laws On Financial Services

Author:Mr David Kohler, Stephen S. Kho and Artem Faekov
Profession:Akin Gump Strauss Hauer & Feld LLP
 
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Key Points

Following the 2008 crisis, Switzerland launched a legislative project to create uniform competitive conditions for financial intermediaries and improve client protection. Swiss Parliament adopted the FinSA on 15 June 2018. The FinSA is part of the new financial market architecture and contains rules for offering financial services and distributing financial instruments. On 24 October 2018, the Swiss Federal Counsel initiated the consultation on the ordinances containing the implementing provisions for the FinSA. The FinSA is to enter into force together with the Counsel's implementing ordinances on 1 January 2020. The background of the proposed rules

Following the 2008 crisis, Switzerland launched a legislative project to create uniform competitive conditions for financial intermediaries and improve client protection. The Financial Services Act (FinSA) is part of the new financial market architecture, which covers four areas:

Supervision, governed by the Financial Market Supervision Act, which entered into force on 1 January 2009 Infrastructure, governed by the Financial Market Infrastructure Act, which entered into force on 1 January 2016 Supervised entities (Financial Institutions Act) Services (FinSA) Key points of the FinSA

The rules of the FinSA are based on the EU directives (MiFID II, Prospectus Directive, PRIIPs), with adjustments to comply with specific Swiss circumstances. The FinSA contains cross-sector rules for offering financial services and distributing financial instruments. The purpose of the FinSA is to enhance the protection of the clients of financial services providers, to create a level playing field for the provision of financial services and to reinforce the Swiss financial market's reputation.

The FinSA's scope of application extends to any financial service providers, to client advisors, and to producers and issuers of financial instruments. Under the FinSA, a service provider has to comply with rules of conduct and organisational requirements. A client advisor has additional obligations, in particular, to follow specific training programs and to register with a register.

Financial services are defined as any of the following activities carried out for clients: acquisition or disposal of financial instruments, reception and transmission of orders in relation to financial instruments, portfolio management, investment advice and granting loans for transactions with financial instruments.

Client...

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