SWITZERLAND Law and Practice Contributed by: Judith Raijmakers and Florian Thomas Willi, Loyens & Loeff
tives to carry out the restructuring proceedings and may appoint an officer to develop a restruc - turing plan that outlines the basic elements of the procedure and specifies the measures to be implemented (eg, the reduction of existing capi - tal and the creation of new equity, or the conver - sion of debt into equity, as well as the reduction of claims). The restructuring plan ensures that the bank complies with legal regulations after the restructuring is completed and that the protec - tion of the bank’s creditors is guaranteed. If there is no realistic chance of a successful restructuring (or if such restructuring failed), FINMA will (i) revoke the bank’s licence; (ii) order its liquidation; and (iii) publish such liquidation proceedings. Additionally, FINMA will appoint one or more liquidators (subject to supervision and reporting duties to FINMA). Additional rules apply to SIBs. Such banks must have an emergency plan, which will be assessed by FINMA for efficacy. The goal of such plan is to ensure that the systemic functions can be con - tinued without disruption in the event of immi - nent insolvency. Further, SIBs require a recovery and resolution plan. The recovery plan is to be drafted by the management of the bank and needs to contain the stabilising measures to be taken in a time of crisis, allowing the bank to continue its business without government intervention. The recovery plan is subject to approval by FINMA. The resolution plan is drafted by FINMA. The aim of such plan is to illustrate how a FINMA- ordered restructuring or liquidation of the sys - temic bank can be carried out. The bank has to provide FINMA with the information required to draft such plan.
The Swiss deposit protection regime is explained in 6.1 Deposit Guarantee Scheme (DGS) .
9. ESG 9.1 ESG Requirements Overview: Swiss ESG Framework
Other than a few legal requirements, primarily in the area of corporate transparency and sustain - ability reporting, the Swiss regulatory sustain - ability framework is rather minimal (especially when compared to the EU) and has been largely left to self-regulatory efforts. Non-financial Reporting based on Corporate Law As of January 2024, the associated ordinance on climate reporting (the Climate Reporting Ordi - nance) applies in Switzerland. Under the Climate Reporting Ordinance, Swiss companies that cumulatively (i) are of public interest (eg, listed companies or supervised companies, such as banks); (ii) which together with their controlled domestic or foreign entities, have an annual average of at least 500 full-time equivalent posi - tions in two consecutive financial years; and (iii) which together with their controlled domestic or foreign entities exceed a balance sheet total of at least CHF20 million or a turnover of CHF40 million, are subject to non-financial reporting duties. With respect to content, the report needs to contain non-financial information concerning environmental matters (in particular CO₂ goals), social responsibility, employee matters, human rights and combatting corruption. Companies (including banks) subject to the reporting duties are deemed to have complied with climate reporting duties (as a part of the environmen - tal matters) if reporting is made in accordance
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