Financial Regulation Updates in Switzerland: A Comprehensive Outlook
The Swiss financial sector is on the cusp of significant regulatory changes in 2024, both nationally and internationally. To provide a comprehensive understanding of these developments, FINMA has published its eagerly awaited lessons learned report on the takeover of Credit Suisse by UBS.
Sustainable Finance: Evolving Regulations
Sustainable finance is witnessing remarkable shifts with the enforcement of numerous regulations and upcoming legislation in both the EU and Switzerland. The field’s evolution is marked by increased scrutiny and the need for financial institutions to adapt to changing norms.
- Increased focus on sustainable finance
- Enforcement of regulations and upcoming legislation
- Need for financial institutions to adapt to changing norms
Anti-Money Laundering (AML) Frameworks Strengthened
Anti-money laundering frameworks are being strengthened on both national and international levels, with amended recommendations and regulations taking effect. The EU has also reached an agreement on forming a new AML authority.
- Amended recommendations and regulations
- New AML authority in the EU
Sanctions: Compliance Crucial
Switzerland has implemented expanded sanctions against Russia and made amendments to various sanction lists. These developments underscore the importance of compliance in this area.
- Expanded sanctions against Russia
- Amendments to sanction lists
- Importance of compliance
Digital Assets: Regulation and Innovation
The digital realm has seen significant progress, with FINMA’s staking clarification providing vital insights into the regulation of digital assets. The Digital Franc project has entered its third phase, marking a pivotal moment in digital currency innovation.
- Staking clarification by FINMA
- Third phase of the Digital Franc project
MiCA and DORA Consultations: Active Implementation
Consultations on MiCA and DORA signal active implementation, while developments in the AI Act have led to the first deal in AI regulation, highlighting progress in comprehensive AI regulations.
- Consultations on MiCA and DORA
- First deal in AI regulation
Tax Updates: OECD/G20 Minimum Tax Rate and More
Recent tax updates include the introduction of an OECD/G20 minimum tax rate, online obligations for VAT registration and reporting, and additional guidance on Pillar Two. The upcoming inclusion of crypto assets in international automatic exchange of information in tax matters is also noteworthy.
- OECD/G20 minimum tax rate
- Online obligations for VAT registration and reporting
- Additional guidance on Pillar Two
- Inclusion of crypto assets in international automatic exchange
Miscellanea: Improvements to Commercial Register Processes
Other topics covered under “Miscellanea” include improvements to commercial register processes and the Federal Law on relieving companies of regulatory costs.
- Improvements to commercial register processes
- Federal Law on relieving companies of regulatory costs
EY’s Regulatory Highlights in Financial Services Sector
With our deep understanding of these developments, EY can help financial services organizations stay ahead of the curve and maintain excellence in an increasingly digital, complex, and interconnected world. Our Regulatory highlights in the financial services sector – Winter 2023/2024 edition provides a comprehensive overview of these changes.
Acknowledgments
We would like to extend our gratitude to Silvia Devulder, Heidi Gysi, Konrad Meier, Isabelle Holliger-Weber, Tatiana Kovalenko, Aylin Erkelet, Onerva Härmä, Maxime Ochrymowicz, Tobias Mahrer, Bratislav Martinovic from the EY Law team and Christophe Adank from the EY Tax team for their valuable contributions to this report.