EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Limited, each of which is a separate legal entity. Ernst & Young Limited is a Swiss company with registered seats in Switzerland providing services to clients in Switzerland.
Recent Searches
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.
- Given a year 2022 busy in terms of new legislation, it is perhaps not surprising that financial institutions are cornered to adapt quickly and efficiently in 2023.
- At the top of the watch list are the topics of financial stability, sustainability, and digital finance on the Swiss and European/International level.
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 be able to ensure compliance.
EY’s biannual regulatory update – published in collaboration with the Association of Foreign Banks in Switzerland (AFBS) – provides an overview on these regulatory developments affecting the Swiss and European markets. This publication updates readers on the laws and regulations that have come into force between September 2022 and February 2023. It provides an outlook on the most important Swiss as well as relevant European and international developments expected from March 2023 onwards.
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 set of laws and regulations that, in principle, would apply to financial institutions.
The year 2022 was certainly an exciting one for financial institutions and asset managers in Switzerland and around the world. There have been various developments in the business, and important legislative changes have been put into effect. Moreover, we anticipate developments in the areas of financial stability, ESG, and digital finance in 2023.
The new bank insolvency and depositor protection provisions as well as the end of the transitional period to fulfill the licensing requirements for asset managers and trustees are of particular importance at the Swiss level. Internationally, 2023 will see the progressive implementation of the Basel III reforms.
In the field of sustainable finance, an exceeding number of new measures and guidance in Switzerland and in the EU to combat greenwashing exemplifies the high importance of companies’ alignment with sustainability reporting standards.
When it comes to AML, the updated AMLA and AMLO-FINMA pursue the aim to increase transparency of multi-layered companies and upcoming developments are to be expected with the full revision of the CDB 20, which is due in 2025.
In the area of sanctions, there is much talk about the sanctions linked to the Ukraine crisis which remain in place with a strengthened framework on the Swiss and European level.
In Tax matters new amendments to the Federal VAT law and the Withholding Tax Ordinance as well as new obligations under the Federal Law on Electronics Procedures entered into force as of 01.01.2023. Other developments, on national and international level are in the pipeline.
Under the heading Digital, Swiss policy makers promote Open Finance and the commitment to data exchange. Further, an obligation to report cyber-attacks on critical infrastructure has been introduced. On an international level, new oversight standards and legislation have been introduced aiming at creating a safer online environment.
Lastly, under the “Miscellanea” section, the regulatory update covers topics such as the modernized company and inheritance law as well as the revision of the Swiss Data Protection Act and related ordinance.
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 highlights in the financial services sector – Winter 2022/2023 edition.
A special thanks goes to the EY Law team Silvia Devulder, Stephan Geiger, Konrad Meier, Dominique Jaussi, Tatiana Kovalenko, Aylin Demir, Ivica Kuzmic, Dennise Schindler, Christian Gafner Yegros, Onerva Härmä, Stella Galehr, Linus Martinis and to Christophe Adank from the EY tax team for their excellent cooperation and valuable contributions.
Summary
The Winter 2022/2023 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, KYC, anti-money laundering, sanctions, tax, digital and miscellanea.