Insolvency And Restructuring Proceedings For Financial Institutions

Key Take-aways

1. The draft Ordinance on Insolvency and Reorganisation Proceedings applicable to Financial Institutions updates the secondary legislation applicable to such proceedings after the entry into force of the revised primary legislation for banks and insurance companies.

2. Such proceedings are distinct from general insolvency and reorganisation proceedings and apply to banks, securities firms, fund management companies, FINMA regulated collective investment schemes in corporate form, mortgage bond institutions, financial market infrastructures and insurance companies

3. While the draft Ordinance does not introduce material changes to the substance of the rules in place previously, it clarifies the scope of the FINMA competences for the insolvency and reorganisation proceedings applicable to FINMA regulated entities.