The Swiss Federal Council initiated easing of the regulatory framework for providers of innovative financial technologies. This initiative envisages reduction of barriers to market entry for providers in the fintech area as well as increasing legal certainty for the sector.
Willing to fulfill the needs of market participants, The Federal Council is planning to introduce in Switzerland the following measures:
- deadline amounting to 60 days for holding money in settlement accounts, which will significantly facilitate fundraising with use of crowdfunding,
- sandbox (innovation area) of which participants will be granted right of accepting funds up to a total value of 1 million CHF without being supervised by the Swiss Financial Market Supervisory Authority,
- new, less stringent, license for FinTech institutions, which do not operate in the lending business. Such entities will be entitled to accept funds not exceeding the overall value of 100 million CHF and will be obliged to observe capital requirements amounting to 5% of accepted funds (however not less than CHF 300.000). Additionally, they will not participate in deposit guarantee scheme.
The Federal Department of Finance has been instructed to prepare a corresponding consultation draft by the start of 2017.