However, operating at the so-called interest rate differential business is illegal and remains the privilege of these banks. In its turn to the”Public residue with non-banks” circular, FINMA sets out its interpretation of the term”interest rate differential business”. By doing so, it’s raising the legal certainty for those who want to create use of the sandbox later on.
With effect from April 1, 2019, the Federal Council is also making changes to the terms regarding the sandbox. It is possible to spend deposits obtained up to CHF 1 million inside the sandbox.
Switzerland’s Financial Market Supervisory Authority (FINMA) will be proposing regulation changes that will impact fintech businesses.
Because of this, FINMA is opening a consultation on Circulars 2008/3″Public residue with non-banks” and also 2013/3″Auditing”. The consultation will last until May 15, 2019.
Let’s recall that, the Swiss parliament has launched a new licensing category for FinTech companies. Additional the Federal Council has corrected the provisions regarding the sandbox. These changes call for a corresponding adjustment of FINMA’s supervisory practice.
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On January 1, 2019, the Swiss parliament introduced a new licensing group referred to as the FinTech licence. As a result of this, FINMA is adding the prerequisites for the regulatory auditing of businesses in this brand new licensing category into its own Auditing circular. The prerequisites for FinTech businesses relies on the established auditing of banks and securities traders, but the analysis is less extensive and the reporting process easier, while focusing upon the risks specific to FinTech business models.