The introduction of a new fintech licence and a revision of the sandbox requirements means that certain adjustments to the regulations have to be made by the Swiss Financial Market Supervisory Authority FINMA.
When it comes to pass, companies with a fintech license will be able to operate with less extensive auditing. The requirements for fintech companies will be based on the established auditing of banks and securities dealers, but the audit is less extensive and the reporting process simpler, while focusing on the risks specific to fintech business models.
With effect from 1 April 2019, the Federal Council will be making changes to the provisions relating to the sandbox. It is possible to invest deposits received up to CHF 1 million within the sandbox.But operating in the so-called interest rate differential business is prohibited and remains the privilege of banks.
In its amendment to the “Public deposits with non-banks” circular, FINMA sets out its interpretation of the term “interest rate differential business”. By doing so, it is increasing the legal certainty for people who wish to make use of the sandbox in the future.
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