The Swiss government has announced plans to revise the regulatory regime for FinTech start-ups.
The move has been much anticipated and promises to further propel the buzzing Swiss FinTech scene. The changes considered at the Bundesrat include a “light” regulatory regime for new FinTech organizations that operate below a defined threshold, i.e. with aggregate customer deposits not exceeding 100 MN CHF. This regime is intended to replace existing FINMA regulation, which thus far requires new tech start-ups to comply with the same rules that large internationally operating financial institutions are subject to – the most severe being the requirement to obtain a full banking license and to provide for equity capital of at minimum 10 MN CHF.

New business models also can be tried and tested much more quickly within a sandbox provision, meaning an environment where regulatory and customer protection rules are temporarily waived to allow for more agile development and piloting.
Last but not least the new regime likely will replace a ruling that currently limits the holding of customer deposits for a maximum 7 day period only and offer a grace period of up to 60 days. Whilst this may not be the perfect solution yet, it certainly will have a positive impact on the design and use of crowd funding models.

We are much looking forward to the further debate and hope for these announcements to materialize in 2017.
More detailed information can be found here at moneycab (German language only)

Stephan Kuester

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