FinTech – Proposed Regulation To Lower Market Entry Barriers

On 2 November 2016, the Swiss Federal Council proposed to ease the Swiss regulatory framework for providers of innovative financial technologies (FinTech). The proposed amendments provide for the following new exemptions and reliefs aiming to enable FinTech in Switzerland:

1. Extension of the maximum holding period of third party monies in settlement accounts from 7 to 60 days (without qualifying as client deposits);
2. Introduction of an innovation sandbox allowing the acceptance of client deposits in an amount up to CHF 1 million without triggering a license requirement; and
3. Creation of a new license type for FinTech innovators allowing the acceptance of client deposits in an amount of up to CHF 100 million (banking license 'light').