Switzerland’s financial market regulator FINMA has released a new FinTech licence and revised requirements for the sandbox.
Companies which receive a FinTech licence will benefit from less extensive auditing. In conjunction with this, the regulator is adding the requirement for regulatory auditing of companies to its auditing circular.
Requirements of FinTech companies is based on the established auditing of banks and securities dealers; however, it will be less extensive and will be a simplified process – focus will be on risks specific to FinTech business models.
Beginning in April, the Federal Council will make changes to the sandbox.
In a statement from FINMA it said, “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 the 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.”
These changes require a corresponding adjustment to FINMA’s supervisory practice. To that end, the regulatory is holding a consultation exercise on Circulars 2008/3 “Public deposits with non-banks” and 2013/3 “Auditing.” This will end on 15 May 2019, and the revisions will enter force in autumn 2019.
Late last year, Crypto Fund AG became the first cryptocurrency company to receive authorisation from FINMA. Authorisation fell under the Swiss Collective Investment Schemes Act CISA and puts the company on the same regulatory level as other fund managers.
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