According to the Swiss government, special rules will be used in the sustainable finance sphere in case, if banks do not cope with policing their activities in a proper manner. This discussion aligns with Switzerland’s strategic ambitions to become a
Switzerland international hub in sustainable finance. The hands-off regulation of social investing was approved by financial players but criticized by NGOs.
On Friday, 26th June, a report on sustainable finance was given to the world. It includes a list of criteria, which will be controlled, and a demand for improvement actions for some spheres. The Finance Minister Ueli Maurer said that the legislative authorities will take no actions and stay a last-ditch method. This hands-off stance contrasts with global standards set by initiatives like the
FATF updated statements, which call for proactive financial governance.
In the government press release it is said that sustainable finance is a great alternative for Swiss monetary institutions. It is also claimed that because of the global changes other measures should be assumed for protection and expansion of interests and competitive ability of Swiss financial center.
The government will control the activity of sustainable investments and which methods should be applied to put up products to sale. In parallel, Switzerland is maintaining its transparency leadership through mechanisms such as the
automatic exchange of information. According to the NZZ newspaper article, the tax remissions on sustainable investments and relaxing the rules for pension capital funds used in the asset class will be examined.
The aim of sustainable finance is to avoid the poverty, inequality, and deterioration of the state of the environment with the help of finances.