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Regulatory highlights in the financial services sector – Summer edition 2023

EY’s Regulatory Update provides a clear and forward-looking view of regulatory developments of relevance to financial institutions.


In brief

  • EY, in collaboration with the Association of Foreign Banks in Switzerland (AFBS), shares the latest and upcoming regulatory developments in the financial sector.
  • Many developments in 2022 have continued into 2023 and will keep the industry busy.
  • Since March 2023, major topics have been market resilience, greenwashing and crypto-assets 

EY’s Regulatory Update provides a clear and forward-looking view of regulatory initiatives of relevance to financial institutions in Switzerland. Change in the financial sector is constant. Due to strict regulatory requirements as well as rapid technological advances, financial institutions are cornered to adapt quickly and efficiently in order to ensure compliance.

EY’s Regulatory Update – published in collaboration with the Association of Foreign Banks in Switzerland (AFBS) twice a year – provides an overview on the regulatory developments affecting the Swiss and European markets. The current edition updates readers on the laws and regulations that have come into force between March 2023 and September 2023. It also provides an outlook on the most important Swiss as well as relevant European and international developments expected from October 2023 onwards.

Regulatory Update Swiss Financial Services – Summer 2023 edition

Discover the latest EY Regulatory Updates which provide an overview on the most important regulatory developments affecting financial institutions in Switzerland.

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The Regulatory Update is structured into seven topics (banking and capital markets, sustainable finance, anti-money laundering, sanctions, tax, digital and miscellanea). Each of these topics have been chosen in such a way that an interested reader will acquire a comprehensive outlook on the set of laws and regulations that, in principle, would apply to financial institutions.

 

2023 is influenced by important developments in the financial sector. National as well as international regulations continue to evolve, and new changes reshape the business.

 

In banking and capital markets law, the takeover of Credit Suisse by UBS and its effects were of particular importance at the Swiss level. On the international level, the EU institutions have reached provisional agreements on amendments to CRR, CRD, MiFIR and MiFID II.

 

On the path to sustainable finance, the financial sector is experiencing an increasing number of regulations and guidelines on both national and international levels. This reflects the ambition of organizations and regulators to put an end to greenwashing.

 

When it comes to AML, the upcoming Act on the transparency of legal entities and the revision of the agreement on the Swiss banks’ code of conduct regarding the exercise of due diligence (CDB 20) are the topics in focus.

 

In the area of sanctions, Switzerland implemented expanded sanctions against Russia aligning with the EU’s 11th sanctions package. In addition, amendments have been made to the sanctions lists for Syria, Belarus, Moldova, Ukraine and Iran.

 

Recent developments in tax include increased flexibility in formation and capital regulations for stock corporations, revised qualified intermediary agreements to broaden responsibilities for withholding and reporting taxes on payments to foreign investors, and required immediate attention to comply with newly published Safe-Haven Interest Rates for related party financing

 

In the digital context, the MiCA and TFR form the basis for the European legal framework for crypto-assets. In the area of artificial intelligence, the draft AI Act now serves as the negotiating position with the European Council.

 

Lastly, further topics are covered under the heading Miscellanea, such as the revised Swiss Data Protection Act and related ordinances which entered into force on 1 September 2023.

 

Thanks to our deep understanding of these topics, EY can help financial services organizations to keep pace and maintain excellence in an increasingly digital, complex and interconnected world.

 

Read Regulatory Updates in the financial services sector – Summer 2023 edition.

A special thanks goes to the EY Law team Silvia Devulder, Stephan Geiger, Konrad Meier, Seraina Ammann, Dominique Jaussi, Tatiana Kovalenko, Aylin Demir, Dennise Schindler, Christian Gafner Yegros, Onerva Härmä, Rea Burkart, Maxime Ochrymowicz and to Christophe Adank from the EY Tax team for their excellent cooperation and valuable contributions.

Summary

The Summer 2023 edition of EY’s Regulatory Update offers a useful overview of new and upcoming regulations in the areas of banking and capital markets law, sustainable finance, anti-money laundering, sanctions, tax, digital and miscellanea.

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