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Too-Big-To-Fail: New Regulatory Capital Regime in Switzerland
In turmoil gripping numerous national economies around the world in the course of recent financial crisis has. among other issues, laid bare the threat posed by institutions having become too big to fail or, even worse, too big to save.
MIFID II and “European passport” for Swiss financial service providers: from dream to reality?
The European Commission adopted on October 20 its draft proposal for a Directive on markets in financial instruments (MIFID II) repealing Directive 2004/39/EC, which surprisingly remained almost uncommented in Switzerland so far.
Public Takeovers in Switzerland - Review 2010
This Homburger Bulletin looks at selected themes and issues that have arisen between January 2010 and March 31, 2011 as a result of Swiss takover transactions.
Position Paper
Cross-Border Debt Offerings by Foreign Issuers into Switzerland
Regulatory Update on Collective Investment Funds
Simplified Prospectus to be replaced by Key Investor Document (KID)
Investment funds: Modification of Swiss private placement rules
Suite à un arrêt récent du Tribunal fédéral, la FINMA est contrainte de revoir son interprétation de la notion d’appel au public au sens de la LPCC.
Following a recent decision the Federal Court, FINMA is constrained to review its interpretation the notion of call the public at of CISA.
Financing a property acquisition through Pension funds
Dominique Christin addresses the tax trap if extraordinary contributions have been made during the last 3 years. The article criticizes the recent case-law of the Supreme Court which may have consequences contradictory with the spirit and purpose of the law.
Grenzüberschreitende Finanzdienstleistungen
Der Finanzbereich ist auch in der Schweiz einer der am stärksten regulierten Wirtschaftzweige. Sich darin zurechtzufinden ist nicht immer einfach. Nachfolgende Ausführungen sollen dazu einen Einstieg vermitteln. Sie zeigen, dass die Schweiz im Gegensatz zum Ausland und abgesehen vom Bereich der kollektiven Kapitalanlagen und der Versicherungsprodukte, was die Zulässigkeit von grenzüberschreitend angebotenen Finanzdienstleistungen anbelangt, ein sehr liberales Regime kennt.
FINMA-Richtlinie stösst auf rechtliche Barrieren
Variable Vergütungen für den Finanzsektor stehen im Spannungsfeld zwischen Regulierung und Zivilrecht
Schadenersatzansprüche des Kunden gegen den Vermögensverwalter - Beurteilung typischer Argumente
Anhand von an der Tagung besprochenen, fiktiven Fällen soll im vorliegenden Aufsatz auf einige wichtige Problemkreise im Bereich der Informationsund Sorgfaltspflichten im Anlagegeschäft und der Vermögensverwaltung eingegangen werden.
Devises émergentes Entre attrait et menace inflationniste
Les monnaies concernées se situent au-dessous des sommets d’avant-crise. Contrairement à l’opinion répandue. Alors pourquoi tant de propos sur leur prétendues surévaluation?
Material scope of CISA : recent decision of the Swiss Federal Court
Thierry Amy assesses for the AGEFI, one of the authoritative financial newspapers in Western Switzerland, a recent controversial judgment of the Federal Tribunal broadening the material scope of the Collective Investment Schemes Act (CISA), judgment which seems to confirm an extensive construction of CISA's scope and thus to grant an increased power to FINMA, and whose validity is worth discussing.
Key Points of FINMA's revised Frequently Asked Questions on Structured Products
The Swiss Financial Market Supervisory Authority FINMA ("FINMA") has recently published a revised version of its "Frequently Asked Questions on Structured Products" (status December 23, 2010) ("FAQ Structured Products").
Distribution Compensation – Recent Developments
As per January 1, 2009, the FINMA Circular 2009|1 on Cornerstones of Asset Management (the Circular) entered into force.
Controversial Federal Supreme Court judgment
Controversial Federal Supreme Court judgment with respect to the scope of the Collective Investment Schemes Act (CISA)
Senate Committee for Legal Affairs Proposes Say-on-Pay Rules for Public Companies
Highlights include: Binding say-on-pay vote regarding board compensation; binding say-on-pay vote regarding executive management compensation subject to an optingout in the articles of association; shareholder approval of the compensation regulations and any amendments thereto; board determination of maximum ratio between base and discretionary salary; prohibition of severance and advance payments unless approved by a two-third majority of the general meeting; institutional representation of shareholders limited to the independent representative; pension funds must disclose how they exercised their voting rights
Employee Share Ownership Schemes - New Swiss Federal Act Passed
Employee share ownership is an important incentive for many employees. On December 17, 2010, the Swiss Federal Parliament in Bern enacted a federal act on the taxation of employee share ownership. The new law will substantially impact many employee share ownership plans. The main aspects of the new rules are as follows:
NewsLetter: February 2011
European Directive on Alternative Investment Fund Managers - Implications for Switzerland
The Reform Project of Swiss Restructuring Law
The Swissair Insolvency as the trigger of restructuring reform
BANKING LAW COMMISSION: BACK TO REGULATION
Under Swiss law, “banks” shall cover all institutions that accept deposits from the public on a professional basis or solicit these publicly in order to finance in any way, for their own account, an undefined number of unrelated persons or enterprises, with which they form no economic unit, or who refinance themselves in substantial amounts from a number of banks which are not significant shareholders and with which they form no economic entity in order to provide any form of financing for their own account to an undefined number of unrelated persons or institutions.
KAPITALEINLAGEPRINZIP – ES BESTEHT HANDLUNGSBEDARF
Ausgewählte Fragestellungen zum Entwurf des Kreisschreibens (1. Teil)
UIA banking law commission in Istanbul
At the occasion of the Annual Congress of the International Association of Lawyers (UIA), one of the largest worldwide organisations of lawyers, which will take place in Istanbul from October 30 to November 3, Dominique Christin and Thomas Goossens participate as speakers to the joint session of the banking and corporate law commissions on the advantages and pitfalls of share call and put options.
Buyback of equity and debt securities in Switzerland
A substantial number of buyback programmes have been launched in the Swiss equity and debt capital markets over the past three years, with a substantial increase of bonds and convertible bonds buybacks in 2009. Before the financial crisis, issuers launched buybacks to either:
REVIDIERTER KONSUMENTENGERICHTSSTAND – EINE GEFAHR FÜR FINANZDIENSTLEISTER?
REVISED CONSUMER COURT - A POTENTIAL FOR FINANCIAL SERVICES?
Private Equity Placements: Part II
Comparing the Laws in Switzerland, the European Union, the United Kingdom and the United States: Part II
Private Equity Placements: Part I
Comparing the Laws in Switzerland, the European Union, the United Kingdom and the United States: Part I
UIA banking law commission in Istanbul
At the occasion of the Annual Congress of the International Association of Lawyers (UIA), one of the largest worldwide organisations of lawyers, which will take place in Istanbul from October 30 to November 3, Dominique Christin and Thomas Goossens participate as speakers to the joint session of the banking and corporate law commissions on the advantages and pitfalls of share call and put options.
Managed Accounts - True (r)evolution in alternative investments?
Given their greater visibility and liquidity, managed accounts have recently been praised by an increasing number of players in the alternative investment industry to rebuild confidence of the investors in the aftermath of the 2008 financial crisis and of the Madoff saga.
UIA banking law commission in Istanbul
At the occasion of the Annual Congress of the International Association of Lawyers (UIA), one of the largest worldwide organisations of lawyers, which will take place in Istanbul from October 30 to November 3, Dominique Christin and Thomas Goossens participate as speakers to the joint session of the banking and corporate law commissions on the advantages and pitfalls of share call and put options.
Insolvency of banks and other financial institutions in Switzerland
Switzerland’s financial services industry attracts worldwide interest and investment. For that reason, the laws relating to the insolvency of Swiss banks and other financial institutions are of considerable international interest.
Buyback of equity and debt securities in Switzerland
A substantial number of buyback programmes have been launched in the Swiss equity and debt capital markets over the past three years, with a substantial increase of bonds and convertible bonds buybacks in 2009. Before the financial crisis, issuers launched buybacks to either:
Buyback of equity and debt securities in Switzerland
A substantial number of buyback programmes have been launched in the Swiss equity and debt capital markets over the past three years, with a substantial increase of bonds and convertible bonds buybacks in 2009. Before the financial crisis, issuers launched buybacks to either:
Recent developments in the regulatory environment for alternative investment service providers
In the wake of the recent crisis in the international credit markets, alternative investment funds are also a target for new regulations, while Switzerland and other prominent financial centres continue to compete to attract alternative investment funds and asset managers. This article outlines recent developments in the Swiss regulatory environment for alternative investment service providers.
Proposed Swiss Bank Deposits Protection Law
In response to the recent crisis in global credit markets and the insolvency of numerous banks worldwide, the Swiss Parliament passed an emergency law in December 2008 to expand protection for Swiss bank depositors. On 14 September 2009 public consultation on permanent legislation has begun. This NewsLetter summarizes and appraises the proposed Federal Law on the Protection of Bank Deposits (the ”Deposits Protection Law”or ”DPL”).
Instrumente des Kreditrisikotransfers im schweizerischen Bankenaufsichtsrecht
The modern instruments of Credit Risk Transfer (CRT) have been in the spotlight since the beginning of the credit crisis. This article describes the banking regulatory framework for CRT in Switzerland. It presents the basic characteristics of CRT instruments (credit derivatives and securitisation instruments) and their regulation in Swiss supervisory banking law. The Swiss regulation is, with a few exceptions, based on the provisions of Basel II. Relevant for CRT instruments are the respective provisions on regulatory capital, risk distribution and risk management. The regulation of credit derivatives differs depending whether the instruments are held in the banking or the trading book and whether the bank is buyer or seller of (credit risk) protection. The regulation of securitisation instruments refers to the Basel IIframework for securitisations in its entirety.
International Offerings of Equity Securities in Switzerland by Non-Swiss Issuers
Leading Swiss banks and Swiss law firms agree on a joint position in respect of the applicability of Swiss prospectus requirements for cross-border equity securities offerings by non-Swiss issuers into Switzerland. VISCHER endorsed this position paper which provides foreign issuers of shares and their banks with a harmonized view on certain disputed and debated issues.
Proposed Swiss Bank Deposits Protection Law
In response to the recent crisis in global credit markets and the insolvency of numerous banks worldwide, the Swiss Parliament passed an emergency law in December 2008 to expand protection for Swiss bank depositors. On14 September 2009 public consultation on permanent legislation has begun. This NewsLetter summarizes and appraises the proposed Federal Law on the Protection of Bank Deposits (the ”Deposits Protection Law”or ”DPL”).
New Rules and Regulations of the SIX Swiss Exchange
The SIX Swiss Exchange has published and im-plemented a significant revision of its rules and regulations. The new rules and regulations af-fect both the organisation of the SIX Swiss Ex-change (see Chapter B below) and the listing rules (see Chapter C below). The new rules and regulations entered into force on July 1, 2009, subject to the transitional provisions (see Chap-ter D below). The new rules and regulations are published in English (also in German and French) on the website of the SIX Swiss Ex-change under the following address:
New Unified Supervision of Financial Institutions and Financial Intermediaries in Switzerland
The Federal Law concerning Federal Financial Market Supervision (FINMAG), which created the Financial Market Supervisory Authority (FINMA), enters into full force at the beginning of 2009 and will then place the enforcement of seven federal laws central to the supervision of the financial services industry under FINMA’s unified regulatory roof. This NewsLetter outlines the major features of FINMAG and FINMA.
New Rules on Market Abuse Proposed
commission of experts established by the Swiss Federal Council to consider how to increase the effectiveness of securities market regulation recently delivered its report (the “Report”) on securities market crimes and market abuse (“Börsendelikte und Marktmissbrauch” ). The Report proposes various revisions to ensure that Swiss securities markets function properly. This NewsLetter outlines the proposals.
Multi-jurisdictional outsourcing: transition and transformation issues
Outsourcing invariably means change, and change invariably means problems. Nowhere is this correlation more applicable than during the first months or even years of an outsourcing relationship. Frequently reported problems relate to excess costs and delays in the implementation of projects. Operational issues during or after the migration of services can also occur, which can range from minor performance problems to major outages.
Financial Market Supervision Innovations
As per January 1, 2009, the Swiss Federal Council fully enacted the Federal Act on the Swiss Financial Market Supervisory Authority (FINMASA). As per the same date, the Swiss Financial Market Supervisory Authority (FINMA) took over the functions of the Swiss Federal Banking Commission (FBC), the Federal Office of Private Insurance (FOPI) and the Anti-Money Laundering Control Authority (AML Control Authority) and commenced its operative day-to-day activities. Thereby, an integrated supervisory authority came into existence that supervises – like in other European jurisdictions – banks, insurance companies, stock exchanges, securities dealers and other financial intermediaries.
Freezing a Defendant's Assets: Enforcement of a Worldwide Freezing Injunction in Switzerland
A powerful weapon in English court proceedings is the worldwide freezing injunction, preventing a defendant from disposing of assets pending the resolution of the underlying substantive proceedings. However, the weapon is only as effective as the claimant’s ability to wield it. In particular, the claimant must be able to enforce the injunction in the jurisdiction where the defendant’s assets are located.
The pledge of moveable property in secured financing transactions
Swiss law lacks a broad system for creating security interests in moveable property which remains in the possession of the borrower, such as equipment, vehicles and inventory. The lack of a system of nonpossessory security interests make financing transactions which are to be secured with moveable property significantly more difficult and expensive to complete.
New "hat" for Swiss securities
The Swiss Federal Council has drafted the new Federal Law on Book-Entry Securities (Bundesgesetz über Bucheffekten) (BEG). The BEG creates a new, more readily transferable type of securities and conforms the transfer of Swiss securities to current international standards. The first debates of the Swiss Parliament on the draft BEG are scheduled for November 2007. Earliest entry into force is expected to occur in 2009.
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“Qualified Investors”under the new Federal Collective
The Federal Collective Investment Schemes Act of 23 June 2006 (the“CISA”)entered into force at the beginning of 2007. This law brought many changesto the landscape of investment fund regulation, including the introductionof a category of investors defined as“qualified investors”to whom interestsin foreign collective capital investments which are not subject to regulationin Switzerland may be offered.
The Duty to Disclose Significant Holdings in Listed Companies
As of1 July 2007, two important changes regarding the duty to disclose significant holdings in listed companies have entered into force: First, aholder of equity securities has to add all (call) options he holds to his holdings in shares in order to determine whether a threshold triggering the disclosure duty has been reached. Second, options providing for cash settlement are subject to the disclosure duty.
Das Kollektivanlagengesetz – auch steuerlich ein anspruchsvoller Parcours
Das per 1 Januar 2007 in Kraft getretene Kollektivanlagengesetz birgt auch steuerlich einige Knacknüsse, Im vorliegenden Beitrag werden die Grundzüge der geänderten Steuernormen kurz dargestellt. Detailfragen wird die Praxis mit Sicherheit noch einige lösen müssen.
Mezzanine Financing of Company Takeovers and New Companies
E i n f ü h r u n g
Die Realisierung neuer und innovativer Ideen und Produkte namentlich von Jungunternehmen verlangt nach einer entsprechenden Finanzierung. Weil die Erfolgsaussichten zu Beginn des Wachstums schwer abzuschätzen und Sicherheiten für Bankkredite kaum oder nicht vorhanden sind, steigt der Bedarf nach alternativen Finanzierungsmethoden. Die Banken sind im traditionellen Firmenkreditgeschäft zunehmend zurückhaltend. Eine ähnliche Situation ist auch vermehrt bei Unternehmensübernahmen festzustellen. Die Finanzierung von Jungunternehmen und Unternehmensübernahmen mit Mezzanine stellt eine solche alternative Finanzierungsmethode dar, die sich auch in der Schweiz zunehmender Beliebtheit und Verbreitung erfreut.
Das neue Kollektivanlagengesetz - Stärkung des Finanzplatzes Schweiz
Mit dem voraussichtlich am 1 Januar 2007 in Kraft tretenden, neuen Kollektivanlagengesetz soll der Fondsplatz Schweiz eine dynamische, flexible und moderne Regulierung erhalten. Dabei bleibt abzuwarten, ob resp. wie sich allfällige "Geburtsfehler" des neuen Gesetzes in der Praxis auswirken werden.
Corporate Governance - Transparenz bezüglich Entschädigung von VR und GL
Die neuen Bestimmungen des Obligationenrechts bez Vergütungen an Mitglieder des Verwaltungsrats und der Geschäftsleitung treten am 1 Januar 2007 in Kraft Es stellen sich u a übergangsrechtliche Fragen im Zusammenspiel mit der Richtlinie der SWX Swiss Exchange betr Informationen zur Corporate Governance.
