March 15, 2019Legal Alert


Adjustments to FINMA circulars with regard to FinTech License and Sandbox

New licensing category for the FinTech companies is under review by the Swiss parliament. The Federal Council has adjusted the provisions concerning the sandbox though these changes require a corresponding adjustment of FINMA’s supervisory practice. Sandbox provision is the main federal concern. FINMA supervision is an important requirement in the adjustments. Moreover, there is ongoing consultation about the Circulars 2008/3 and 2013/3 on the public deposits with non-bank and auditing respectively. The partially reviewed circulars are to be set to execution in autumn 2019, while the ongoing consultations are expected to end in 15th May 2019.
FinTech license: less extensive auditing
Fintech license is a category of license introduced by the Swiss parliament on 1st January 2019. Consequently, more tasks are likely to be added by FINMA in the regulatory auditing of companies, and more precisely in the auditing circular in the licensing category. Established auditing of the bank and the security dealers are requirements of the for FinTech companies. However, they are more focused on the specific risks to the FinTech business model and less extensive in the audit.
Sandbox: investment of deposits possible
Changes are being made by the Federal Council about the provision related to the sandbox that comes to effect on 1st April 2019. With more affirmation, it is possible to invest up to CHF 1 million deposits within the Sandbox. Interest rates differential business is a privilege of the banks only. FINMA is in the practice of interpreting the ‘interest rate differential business’ to help the public understand and make more future use of the sandbox.

Source: https://www.finma.ch/en/news/2019/03/20190315-mm-fintech/

  • Legal disclaimer. This article does not constitute legal advice and does not establish an attorney-client relationship. The article should be used for informational purposes only.

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