Foreign Ownership of Swiss Banks: New Rules and Regulations

In a bid to maintain the integrity and stability of Switzerland’s financial system, the Swiss government has introduced new rules governing foreign ownership of Swiss banks. The changes aim to strike a balance between promoting international cooperation and ensuring that local institutions remain free from undue influence.

Prior Approval Requirements

Under the new regulations, any foreign entity seeking to acquire more than 10% of the shares in a Swiss bank will need to obtain prior approval from the Swiss Financial Market Supervisory Authority (FINMA). This applies to both individual investors and institutional shareholders.

Increased Transparency

The revised rules also introduce stricter transparency requirements for banks with foreign ownership. They must disclose detailed information about their shareholding structure, including:

• The identity of their major shareholders
• The country of origin

This increased transparency is designed to promote greater accountability and trust in the Swiss banking system.

Consolidated Supervision

In addition, banks with parent companies supervised by a banking or financial market authority in another country will be allowed to transmit certain confidential information to their parent companies for consolidated supervision purposes. However, this will only be permitted if:

• The recipient is bound by official secrecy or professional confidentiality
• The transmission does not compromise Swiss bank secrecy

Crypto-Asset Holdings

The new regulations also address the growing importance of crypto-based assets in Switzerland’s financial landscape. FINMA has been granted the authority to set a maximum amount for such assets held as safe-custody assets for custody clients, taking into account factors like:

• The function and risk profile of the underlying technologies

Effective Date

The revised rules will come into effect on [insert date], giving banks and investors time to adjust to the new requirements. FINMA has been tasked with monitoring compliance and providing guidance on implementing the changes.

Industry Reaction

In a statement, Swiss Finance Minister Ueli Maurer emphasized the importance of maintaining Switzerland’s reputation as a stable and secure financial hub: “Our goal is to ensure that our country remains an attractive location for international investors while also safeguarding the interests of local banks and their customers.”

The new regulations have been welcomed by industry experts, who see them as a necessary step in maintaining the integrity of Switzerland’s financial system. However, some critics have expressed concerns about the potential impact on foreign investment flows into the country.

Future Development

As the Swiss banking sector continues to evolve, it remains to be seen how these changes will shape its future development and competitiveness. The new regulations are designed to strike a balance between promoting international cooperation and ensuring that local institutions remain free from undue influence. Only time will tell if they will achieve this goal.