SWITZERLAND Law and Practice Contributed by: Lukas Morscher and Lukas Staub, Lenz & Staehelin
3.2 Legacy Players’ Implementation of Solutions Introduced by Robo-Advisers Concerning legacy players’ implementation of solutions introduced by robo-advisers, see 3.1 Requirement for Different Business Models . 3.3 Issues Relating to Best Execution of Customer Trades Under FinSA, financial service providers need to ensure that client orders are always executed in the best possible way with regard to the financial terms, timing of execution and other terms and conditions. Providers define, in a best execu - tion policy to be reviewed annually, the criteria necessary for the execution of client orders. This includes the price, costs, timeliness and prob - ability of execution and settlement. Upon the request of the client, the financial service provid - er evidences that the respective customer trades have been executed in compliance with these criteria. Regulatory best execution requirements do not apply in relation to institutional clients.
note issuances are also possible. The amount of interest or return payment varies depending on the risk of the project and borrower, but it is usually lower than what traditional banks charge. There are a number of crowdlending businesses in Switzerland that offer loans to both private persons and companies. Generally, crowdlending is subject to general financial services regulation, including AMLA (see 2.2 Regulatory Regime ). Also, under the Swiss Consumer Credit Act (CCA), only author - ised lenders can provide consumer loans. Lend - ers need to register with the Swiss canton where they are established or, if activities are conduct - ed on a cross-border basis by foreign lenders, with the Swiss canton where they intend to per - form their services. Certain amendments to the consumer cred - it legislation came into force on 1 April 2019. Consumer loans that are obtained through a crowdlending platform are required to comply with the same consumer protection provided by the law as if they were extended by a profes - sional lender. Certain implementing provisions in the Consumer Credit Ordinance have also been adopted, such as access to consumer credit information systems and professional indem - nity insurance requirements for crowdlending platforms. 4.2 Underwriting Processes Concerning underwriting processes, see 4.1 Differences in the Business or Regulation of Loans Provided to Different Entities . 4.3 Sources of Funds for Fiat Currency Loans Concerning the syndication of fiat currency loans, see 4.1 Differences in the Business or
4. Online Lenders 4.1 Differences in the Business or Regulation of Fiat Currency Loans Provided to Different Entities
Crowdlending refers to loans for funding com - panies or individuals, which are consequently categorised as borrowed capital. Crowdlending is also known as P2P or social lending because funding is provided by individuals or companies that are not financial institutions or financial intermediaries. Referring to the distinguishing criterion mentioned in the foregoing to differ - entiate subtypes of crowdfunding, participants (funding providers) receive a payment in return for making their funding available to the project developer (borrower), typically in the form of interest, although participating loans or bond/
816 CHAMBERS.COM
Powered by FlippingBook