Banking Regulations 2022 - Switzerland: Trends & Developments

Dealing with Prospective Clients under Swiss Financial Services Legislation

The new Swiss financial services legislation came into force at the beginning of 2020. After a transitional period of two years, which will come to an end on 31 December 2021, all financial service providers will move to a new regime when dealing with prospective and actual clients in or from Switzerland. In that context, they will be required to comply with conduct of business and organisational rules.

As is the case under foreign legislation, Swiss law provides for certain exemptions from the application of the new rules. Such exemptions generally depend on the category of clients. In order to rely on such exemptions, and also as expressly required by law, the financial service providers will have to classify their clients in the relevant categories (institutional, professional or retail clients).