SWITZERLAND Law and Practice Contributed by: Judith Raijmakers and Florian Thomas Willi, Loyens & Loeff
1. Legal Framework 1.1 Key Laws and Regulations Supervision
• the FINMA Banking Insolvency Ordinance (BIO-FINMA), specifying the bankruptcy and restructuring proceedings of the BankA; • the FINMA Accounting Ordinance (AO- FINMA), covering, inter alia, the preparation of financial statements and the publication of annual reports and interim financial state - ments; • the FINMA Ordinance on Disclosure Obliga - tions (DisO-FINMA), which governs disclosure obligations, in particular with respect to capi - tal, liquidity, interest rate risks, remuneration and corporate governance principles; • the FINMA Ordinance on Credit Risks (CreO- FINMA), which further details the require - ments of the CAO with respect to minimum capital requirements for credit risks; • the FINMA Ordinance on Market Risks (MarO- FINMA), which covers the requirements of the CAO with respect to minimum capital require - ments for market risks; • the FINMA Ordinance on the Trading and Banking Book and Eligible Capital (TBEO FINMA), which specifies the requirements of the CAO with respect to the trading and banking book (including the classification of assets and calculation of RWA) as well as eligible capital; and • the FINMA Ordinance on the Leverage Ratio and Operational Risks (LROO-FINMA), which includes the requirements of the CAO with respect to calculation of the leverage ratio and the minimum capital requirements for operational risks. Other relevant laws and regulations include: • the Swiss Financial Services Act (FinSA) and the ordinance thereto (FinSO), which (i) set out the rules that apply to the provision of financial services, such as conduct rules, organisational rules, duties to register as cli -
The Swiss Financial Market Supervisory Author - ity (FINMA) is responsible for supervision of the Swiss banking sector. The responsibility for the monetary policy and overall stability of the financial system lies with the Swiss Central Bank (SNB). The latter also determines, in consulta - tion with FINMA, which banks are systematically important. Laws and Regulations The Swiss Federal Act on Banks and Savings Banks (the BankA) and the related ordinances issued by the federal council and FINMA are the primary pieces of legislation, which, inter alia, set out the licensing and ongoing operational requirements for banks. Ordinances enacted by the federal council include the following: • the Swiss Federal Ordinance on Banks and Savings Banks (the BankO) which further details the provision of the BankA; • the Swiss Capital Adequacy Ordinance (CAO), on the minimum capital requirements of Swiss banks, based on their business activities and risks; and • the Swiss Liquidity Ordinance (LiqO), contain - ing the qualitative and quantitative liquidity requirements for banks. Further, FINMA has issued the following ordi - nances covering banks: • the FINMA Foreign Banks Ordinance (FBO- FINMA), which applies to foreign banks that seek to establish a branch in Switzerland;
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