Fintech Boost In Switzerland

Fintech is currently a hot topic in many jurisdictions, particularly when it comes to facilitating innovation in that area from a regulatory perspective.

Against this backdrop, during its meeting on November 2 2016, the Swiss Federal Council pronounced itself in favour of easing the regulatory framework for fintech companies to establish Switzerland as a leading fintech hub. It also instructed the Federal Department of Finance to draw up a consultation draft with the required legislative amendments.

Lower regulatory barriers

The Swiss Federal Council has proposed the following regulatory adjustments:

• Fintech licence: Fintech business models often require the handling of client funds which potentially leads to the need for a banking licence. However, the cost and effort involved in acquiring a fully-fledged banking licence most often exceed what fintech startups can afford, effectively preventing them from entering the market. In light of this, the Swiss