Swiss Federal Council Adopts New Fintech Regulations

Swiss Federal Council Adopts New Fintech Regulations

The Swiss Federal Council has reportedly adopted new regulations for fintech companies with the intention to support the sector.The regulations wi

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The Swiss Federal Council has reportedly adopted new regulations for fintech companies with the intention to support the sector.

The regulations will officially come into force on Augut 1, 2017, according to a report published in financemagnates.com.

The new rules change the existent practice of holding money in settlement accounts for just seven days. Now the deadline will be 60 days. This is supposedly facilitating crowdfunding services, as the publication noted.

Apart from that, the Swiss authority has created an “innovation area“, where a provider can accept up to 1 million franc from public funds without being monitored by FINMA, an industry watchdog.

“The acceptance of public funds up to CHF 1 million should not be classified as operating on a commercial basis and can be exempt from authorisation. This change should allow firms to try out a business model before they are finally required to obtain authorisation in the case of public funds of over CHF 1 million.”, as the Federal Council commented.

The third simplification that may possibly enter into force is concerning client deposits.

Financial innovators that are not active in the lending business can accept client deposits of up to the maximum amount of 100 million franc.

Still, there were some concerns raised during the consultation period. Specifically, participants pointed out that Fintech companies should adhere with anti-money laundering and terror financing rules, as blogs.deloitte.ch explained in an article.

As for the innovation area, there were requests for clarification on the procedure concerning exceeding og the 1 million franc treshold, as the publication added.

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