Cost Pooling Agreement (intra-group)
PricewaterhouseCoopers AG
The Cost Pooling Agreement (intra-group) is a Swiss-law governed standard agreement for the pooling and re-allocation of costs incurred by multiple legal entities within a group of companies.
Author's Note
The Cost Pooling Agreement (intra-group) is a Swiss-law governed standard agreement for the pooling and re-allocation of costs incurred by multiple legal entities within a group of companies. Costs are often pooled and re-allocated where they relate to functions or services that are performed by one or more entities, for the benefit of many entities within the group. This template covers the pooling of costs in respect of (i) functions performed by specified staff (e.g. whose roles span multiple countries or business divisions); or (ii) services performed by one entity for the benefit of several other entities. The template allows for additional group companies to join the pool at a future date, by signing an “accession form”. Typically the parties will appoint a “pool leader” who will be responsible for overseeing the administrative and accounting processes required to implement the pooling and subsequent re-allocation of the costs....
Read moreThe Cost Pooling Agreement (intra-group) is a Swiss-law governed standard agreement for the pooling and re-allocation of costs incurred by multiple legal entities within a group of companies.
Costs are often pooled and re-allocated where they relate to functions or services that are performed by one or more entities, for the benefit of many entities within the group. This template covers the pooling of costs in respect of (i) functions performed by specified staff (e.g. whose roles span multiple countries or business divisions); or (ii) services performed by one entity for the benefit of several other entities.
The template allows for additional group companies to join the pool at a future date, by signing an “accession form”.
Typically the parties will appoint a “pool leader” who will be responsible for overseeing the administrative and accounting processes required to implement the pooling and subsequent re-allocation of the costs. This template assumes that the pool leader is also a member of the pool, and is not separately remunerated for the performance of its Pool Leader responsibilities.
Tax input should be sought as to whether the costs to be pooled should be subject to a mark-up to meet the arm’s length principle.
The template expressly excludes from the pool, those costs that are typically considered shareholder or stewardship costs, which may be treated differently from a tax and accounting perspective.
Terms which are configurable to the user’s needs include:
- Purpose and background;
- Services or functions included in the cost pool;
- Mark-up (if any);
- Term and termination;
- Timing and process for pooling and re-allocation of costs;
- Payment terms and allocation key;
- Sub-contracting and assignment rights;
- Provisions relating to notices; and
- Dispute resolution, jurisdiction and arbitration.
Circumstances of Use
This template is intended to be used to document the establishment of a cost pooling arrangement between group companies, for transfer pricing purposes.
The Cost Pooling Agreement (intra-group) may be used for cross-border transactions where the parties have agreed to use Swiss law.
Terms of Use
The purchase of this Product is subject to PartnerVine Terms.
You (the registered user through whose account the purchase is made) may:
- Access the document-generation interview for 90 days from date of purchase;
- Export and download an unlimited number of copies of the document(s) in Word or pdf format;
- Share and use the document copies in connection with the circumstances described in this Author’s Note and only for the ordinary business purposes of the group of companies to which you belong.
Exclusions and Limitations
The Cost Pooling Agreement (intra-group) is drafted on the basis that costs will be submitted into the pool either quarterly or annually, and then re-allocated in accordance with an agreed split (“allocation key”). The allocation key needs to be manually added in a schedule. More complex arrangements may involve re-allocation on the basis of an initial allocation key, with a subsequent reconciliation process at the end of the year. This template does not cover such arrangements.
The invoicing and re-allocation of costs between entities may attract VAT. Specific tax advice should be taken as to the implications of establishing a cost-pool arrangement on the group’s VAT position.
Other Comments
No warranty or representation is given or made that the allocation of functions and risk and the related transfer pricing arrangements provided for in this document are appropriate in the specific circumstances of any given group of companies. No legal or tax advice is provided and nothing in this template or the related user interview shall be deemed to constitute the provision of legal or tax advice in relation to any fact or matter. Where necessary, specialist legal and tax advice should be sought together with input from group accounting functions prior to executing this agreement.
Preview a document
To see how an automated document works, press “Preview Doc” to generate an intra-group loan agreement. After filling out a sample of the questions available, you will be able to generate your document. The answers to the questions you don’t fill out are prepopulated based on general answers.
How Coupa works with PartnerVine
This automated document is powered by Coupa. Coupa has produced this video to lead you through what happens when you purchase an automated document on PartnerVine. It describes how you make a purchase, link to the Coupa environment, answer questions, review your draft and download/print it.
Should I buy this product?
Relative Advantage Calculator
You can change the assumptions. The initial estimates were given by the firm that supplied the product.
hours minutes hours minutes times $ cost per hourAsk a lawyer
If you have a question for PricewaterhouseCoopers AG, you can post it here. PricewaterhouseCoopers AG will receive notice of your comment.
Please do not post confidential information. Your question and PricewaterhouseCoopers AG's answer will be publicly posted in the frequently asked questions section on this page. You will need to sign in or register with PartnerVine to ask your question.
Frequently asked questions
The parent company of the group is referred to in the cost pooling arrangements to exclude costs typically considered to be “shareholder costs”.
A cost pool can cover (1) a provision of specified services where you will be able to specify the services performed by each entity for which the costs are to be pooled or (2) the performance of functions by identified staff which may be appropriate if the costs to be pooled relate to certain key roles that span business segments or legal entities.
If cost pooling already commenced, the agreement will have retrospective effect.
Yes, pooling administration changes can be made unilaterally if stated in the contract. This gives more flexibility in reaction to changing circumstances. Otherwise, they have to be agreed between all parties.
They can be performed by the Pool Leader, f.ex. accounting tasks may be performed by the group’s shared finance function. If the latter is the case, this must be stated in the contract.
Swiss GAAP, US GAAP or the established cost accounting standard.
The notice period for termination can be either three months, six months or specifically stated. This must be noted in the agreement. Moreover, termination notice can be different for the Pool Leader and the Pool Members.
The default position under this agreement is that no assignment is permitted. However, it may be appropriate to allow assignment within the group.
Yes, in an intra-group agreement, the parties may have more flexibility if email qualifies as writing (e.g. for the purposes of “written notice”). This must be specified in the agreement and may even allow termination. It is good practice to specify who is able to receive or send notices. Moreover, inserting a title is recommended, rather than an individual's name (e.g. "the Finance Director"), as roles and responsibilities change over time.
You may choose to resolve disputes in court or through arbitration.
This agreement is governed by Swiss law. If you do not specify the place of jurisdiction, any court which is competent under Swiss law will have jurisdiction to resolve a dispute.
Data protection in the context of remote work Recommendations of Swiss data protection authorities Today, 28th January, is European Data Protection Day. The day was originally initiated by the Council of Europe (CoE) in 2007. As Switzerland is a member of the CoE too, the day is also celebrated in Switzerland.
Brexit: consequences for the Swiss and UK social security coordination The UK leaves the EU with a withdrawal agreement which foresees a transitional period during which regulations on the coordination of social security remain applicable with Switzerland.
Aspects of employment law in connection with the introduction of paternity leave On 27 September 2020, the Swiss electorate voted with a clear majority to introduce two weeks of paternity leave which will enter into force on 1 January 2021. This has resulted in adjustments to the employment law provisions in the Code of Obligations (CO).
A simple promotional gift? While giving or receiving “simple gifts” is a welcome opportunity to initiate and foster business relationships, bribery is almost globally punishable.
PwC Legal's Regulatory Radar – challenging the regulatory tsunami Are you struggling to keep up with constant regulatory changes? Would you like to learn about a tool to challenge this regulatory tsunami? If so, please continue reading to discover how PwC’s Regulatory Radar can help you track all regulatory initiatives and remain on the road to success.
New draft of the ePrivacy regulation: one last chance? The German EU Council Presidency has published a new draft of the ePrivacy regulation which is intended to supplement the European GDPR. The latest version of the draft provides substantial changes on the rules on electronic communications and digital marketing.
Data protection gets a makeover: a worldwide overview Since the entry into force of the European General Data Protection Regulation (GDPR) more than two years ago, the global data protection landscape has been changing. As a result, many international data protection laws have been newly adopted, modified or become effective.
European Data Protection Board issues recommendations on Schrems II After the landmark ruling "Schrems II", the European Data Protection Board (EDPB) published its recommendations on data transfers to third countries in November 2020. These recommendations will be key for Swiss companies.
Time to act: Maintaining data flows to the UK Brexit brings with it many uncertainties, especially in the area of data protection. Therewith, it is still questionable whether the level of data protection in the UK will be considered equivalent by the EU after the UK's final withdrawal from the European Union. A non-recognition would result in serious consequences for Swiss companies....
FINMA opens consultation on transparency obligations for climate risks Investors and policymakers want greater transparency and comparability regarding climate risks in the banking and insurance sector. If not properly assessed, evaluated and monitored, climate risks are the new drivers of value decrease.
FINMA adopts regulation implementing FINSA and FINIA The Swiss Financial Market Supervisory Authority (“FINMA”) has adopted its regulation implementing FINSA and FINIA. This encompasses a new implementing ordinance to FINIA, as well as changes to FINMA ordinances and circulars that need to be adjusted as a result of the implementation of FINSA and FINIA.
First court case affected by Schrems II – further legal uncertainty ahead For the first time in Europe, a case relating to the "Schrems II" judgment was brought before a higher court, namely the Conseil d’ État (French Supreme Administrative Court). Remarkably, the French data protection authority originally had a different view on the case compared to that of the court itself. This creates legal uncertainty across...
European data protection authorities step on the gas – and there is more to come As recently as last year, the number of large fines based on the General Data Protection Regulation (GDPR) increased steadily. However, since the outbreak of the corona crisis, European data protection authorities appear to have stepped on the brakes relating to GDPR enforcement actions. But it looks like things are starting to move again.
FINMA Guidance 08/2020: LIBOR replacement for derivatives The Swiss Financial Market Supervisory Authority FINMA recommends its supervised institutions affected by the replacement of LIBOR to sign the new Fallbacks Protocol published by the International Swaps and Derivatives Association (ISDA) as soon as possible.
EU data protection: noteworthy update to cookie guidelines by CNIL The French data protection authority (CNIL) recently published an updated version of its guidelines on cookies called "Recommendations on cookies and other trackers".
EU adequacy decision on data protection laws: risks for third countries Recently, the Court of Justice of the European Union (CJEU) issued a new landmark decision on the retention of data by EU Member States (C-511/18).
Recovery and resolution regulation for CCPs The EU is stepping up its rules to make CCPs safer and address systemic risk that could arise from their potential failure.
Parliament agrees on revised Swiss Data Protection Act Almost to the day three years after the Federal Council first published the draft bill to revise the Swiss Data Protection Act (FADP), the Parliament was finally able to agree on a new law.
Switzerland strengthens fintech and blockchain sector On 10 September 2020, the second chamber of the parliament adopted an amending act to further improve Switzerland’s framework conditions for distributed ledger technology (DLT)/blockchain companies.
CH-US Privacy Shield declared invalid Swiss data protection legislation guarantees the security and protection of personal data, especially when exchanging data with foreign countries. For data transfers from Switzerland to the USA, it was previously possible to obtain certification under the CH-US Privacy Shield, thus ensuring a partially adequate level of data protection for data...
EU-US Privacy Shield declared invalid In a long-awaited decision, the Court of Justice of the European Union (CJEU) has invalidated the EU-US Privacy Shield, a framework governing data transfers between the EU and the US. Good news, however, the transfer of personal data based on standard contractual clauses is still allowed.
FINMA authorises first supervisory organisations FINMA has authorised two supervisory organisations responsible for the future supervision of portfolio managers and trustees.
FINSA / FINIA update July 2020 As of 24 June 2020 the FINSA client advisor registry and ombudsman have been licensed. To get a certificate of knowledge and know-how, the FINSA Client Advisor Test is the only recognised online certificate that shows sufficient proof for it.
COVID-19 – how to handle the compliance risks of the “new normal” The outbreak of the highly contagious and rapidly spreading COVID-19 virus is continuing to have a significant impact across the globe. Not only have travel restrictions and the concern of getting infected changed everyday life completely, there have also been drastic changes in the working world. Wherever possible, working from home has become...
EU Whistleblowing Directive – of relevance to Swiss companies? Commonly known scandals, such as the Panama Papers or Cambridge Analytica, made evident that whistleblowers can play an important role when it comes to unveiling misconduct inside companies and organisations. Until now, whistleblower protection in the European Union (EU) had only been regulated in a fragmented manner. However, with the...
COVID-19: getting ready for the corporate reboot! The pandemic hit us all unexpectedly, and our worries and uncertainties are fueled by the unusual situation. But when the storm is over and the dust settles, we have the future. Even the pandemic has an expiry date. Under these exceptional circumstances, senior executives faced tough business decisions, amid ad hoc government actions to manage...
Immigration Alert: Amendment to the assignment allowance regulations in the case of long-term assignments to Switzerland According to Swiss immigration law, employers are required to reimburse all travel, housing and meal expenses that employees incur in connection with their assignment to Switzerland. The Swiss government will now limit this obligation to one year as of 1 April 2020.
Brexit: January 2020 update on the impact of immigration from a Swiss perspective As a result of the referendum held on 23 June 2016 and after a long period of uncertainty, the UK and EU parliaments approved the withdrawal agreement bill on 23 January 2020. The UK will exit the EU on 31 January 2020. The transition period will last until 31 December 2020.
The BVG/LPP reform goes into consultation This article explains the BVG reform, which was sent for consultation on 13 December 2019, its main points and the points that could give rise to controversy.
Brexit: Update on the impact of immigration from a Swiss perspective As a result of the referendum held on 23 June 2016 the United Kingdom decided to leave the European Union. After a long period of uncertainty, the elections of the British House of Commons on 12 December 2019 seem to have cleared the way for a (hard) Brexit on 31 January 2020.
Legal news alert | November The Federal Council issues a legislative proposal for the improvement of the legal framework for DLTs. Key takeaways.
EU Direct Tax News alert Spanish Supreme Court Judgment on dividends taxation for non-resident investment funds
Whistleblower reporting A summary of the key requirements and relationships between a Whistleblower, Undertaking and a Competent Authority as set out within the Whistleblower EU directive.
Improved protection of whistleblowers in the EU as of 2021 The European Union (EU) has formally adopted new rules on whistleblower protection - a game-changing piece of legislation that will help protect persons reporting on incidents (“whistleblowers”) across Europe. It is the first time that the EU has a dedicated legislation in this area.
Federal Council puts FinSA and FinIA - together with the final ordinances FinSO and FinIO - into force: what are the major changes in FinSO? The parliament already passed the Financial Services Act (FinSA) and the Financial Institutions Act (FinIA) in summer 2018. As planned, at its meeting of 6 November 2019 the Federal Council put FinSA and FinIA, together with the final ordinances into force with effect from 1 January 2020.
The new “Global Forum Act”: abolition of most bearer shares and stricter reporting obligations As a result of ever growing international pressure regarding transparency and information exchange, on 21 June 2019 Parliament passed the new Swiss Federal Act implementing the recommendations of the Global Forum on Transparency and Exchange of Information for Tax Purposes.
EUBOF has published a report on blockchain and the law in the EU The Blockchain Observatory and Forum of the European Union (EUBOF), an initiative of the European Commission to accelerate the development of blockchain in the European Union (EU), has published a new report named “Legal and regulatory framework of blockchains and smart contracts”. The paper highlights the typical legal issues which often arise...
The revision of the DPA – a never-ending story The Swiss Data Protection Act (DPA) is currently being revised. Due to the rapid technological development over the last 20 years, the DPA is no longer up to date.
FINMA’s ‘Stable Coin’ Guidelines On 11 September 2019, the Swiss Financial Market Supervisory Authority (FINMA) published a supplement to their guidelines for Initial Coin Offerings (ICO). This supplement provides guidance on “stable coins” under Swiss financial market regulation.
Extended FinSA transitional periods on the home stretch According to the Federal Council's timetable, the final versions of the Financial Services Ordinance (FinSO) and the Financial Institutions Ordinance (FinIO) are set to be published at the beginning of November 2019.
New rules on pre-marketing and cross-border distribution of AIFs and UCITS in the European Union In April this year, the European Parliament voted to adopt a new directive and a new regulation with regard to cross-border distribution of alternative investment funds (“AIFs”) and undertakings for collective investments in transferable securities (“UCITS”). The regulatory package has now been finalised and published in the Official Journal of...
Update on the U.S. / Swiss Double Tax Treaty After almost a ten year delay, the U.S. Senate has finally approved the protocol (the 2009 Protocol) to amend the double tax treaty between the Swiss Confederation and the United States of America.
The CLOUD Act: Old wine in new bottles The Clarifying Lawful Overseas Use of Data Act (“CLOUD Act”) at its core allows US law enforcement authorities to request from cloud providers in the United States (US) data over which they exercise possession, custody or control. It may affect also data hosted by communication service providers (“CSP”), such us cloud or email suppliers, on...
New EBA clarifications to APIs requirements under PSD2 The Regulatory Technical Standards on strong customer authentication and secure api (RTS on SCA & CSC), which will apply from 14 September 2019, are the key to achieving the objectives of PSD2.
New Directive on Whistleblower Protection The European Parliament and EU Council have recently agreed to a game-changing piece of legislation that will help protect persons reporting incidents (“whistleblowers”) across Europe. It is the first time that the EU will have a dedicated legislation in this area.
The impact of EMIR Refit The impact of EMIR Refit on Swiss-based entities as parties to OTC derivative contracts with EU-based counterparties and for Swiss banks that have affected corporate clients
EBA Outsourcing Guidelines - Update It was expected, or at least there was wishful thinking, that MiFID II (2014/65/EU) and GDPR (Regulation (EU) 2016/679) would be the regulatory summit for our high mountain region. However, the European Regulator is continuing to pursue its overall goal of strengthening the regulatory framework in the European Union, which, in turn, is having a...
Small banks regime: FINMA adjusts circulars In 2017, the Swiss Financial Market Authority (FINMA) declared its intent to grant certain exemptions and preferential rules to particularly solid small banks. FINMA’s underlying idea is to reduce the regulatory burden, which has been increasing ever since the 2008 financial crisis, for small banks with above-average capitalisation and high...
Switzerland introduces comprehensive regulation of secondary markets in DLT security tokens Switzerland is about to introduce the next generation of DLT legislation that ensures that it will keep its reputation as most DLT friendly nation in the world. As the DLT markets mature, the regulatory focus is shifting from primary markets to secondary markets. The new proposed Swiss legislation, subject to consultation until 28 June 2019 and...
The National Council supports electronic identity and the E-ID Act Switzerland is about to introduce the next generation of DLT-legislation that ensures that it will keep its reputation as most DLT-friendly nation in the world. As the DLT-markets mature, the regulatory focus is shifting from primary markets to secondary markets. The new proposed Swiss legislation that is subject to consultation until 28 June...
Swiss Bankers Association publishes Cloud Guidelines On 26 March 2019, the Swiss Bankers Association (SBA) published its guidelines for the secure use of cloud services in banking. The SBA asserts that cloud banking provides numerous advantages to its users, such as a high innovation potential due to the use of artificial intelligence, but also an opportunity to save costs, which benefits smaller...
Legislative developments surrounding DAC6 The legislative landscape regarding DAC6 is developing across E.U. Member States as national governments move to introduce relevant laws before the 31 December 2019 deadline. The amendment to Directive 2011/16/EU on mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements (DAC6 for...
Consultation on Framework for Improving Blockchain & DLT During its meeting on 22 March 2019, the Federal Council initiated the consultation on the adaptation of federal law to developments in distributed ledger technology (DLT) which will last until 28 June 2019.
EBA clarifications to APIs requirements under PSD2 Am 15. Februar 2019 hat der Rat der Europäischen Union eine Einigung über ein Packet von überbearbeiteten Vorschriften zur Risikominderung im europäischen Bankensektor gebilligt. Damit wird endlich Klarheit geschaffen, welche aufsichtsrechtlichen Herausforderungen und Themen die regulatorische Agenda in den kommenden Jahren dominieren werden.
The Swiss National Council has accepted a parliamentary motion in favour of the introduction of the Limited Qualified Investor Fund (L-QIF) The Swiss Federal Council’s plan to improve the attractiveness of Switzerland as a financial centre for the fund industry is beginning to take shape. The idea is to introduce a Swiss fund type for institutional investors that does not require authorisation by the Swiss Financial Market Supervisory Authority FINMA.
Precious Metal Assayers and the New Regulatory Framework for the Swiss Financial Market The changes introduced by the new regulatory framework for the Swiss financial markets impact trade assayers. They will be supervised by new institutions and will need to introduce organisational measures, and some will need to apply for authorisation with FINMA. This paper gives an overview on how trade assayers are embedded in the new...
Banking Act: Federal Council initiates consultation on partial revision of the provisions regarding Bank Restructuring, Deposit Insurance and Segregation of Client Securities On March 8th, 2019, the Federal Council has initiated the consultation on a partial revision of the Banking Act. The revision envisages amendments in the areas of bank restructuring, deposit insurance and segregation of intermediated securities.
Das neue EU Banking Package: Einigung über verschärfte Vorschriften für Banken Am 15. Februar 2019 hat der Rat der Europäischen Union eine Einigung über ein Packet von überbearbeiteten Vorschriften zur Risikominderung im europäischen Bankensektor gebilligt. Damit wird endlich Klarheit geschaffen, welche aufsichtsrechtlichen Herausforderungen und Themen die regulatorische Agenda in den kommenden Jahren dominieren werden.
FMIA & BREXIT: Recognition of the UK derivatives regulations FINMA provisionally recognises the UK provisions on clearing, reporting, and risk mitigation as equivalent to the Swiss ones. This is the first step towards enabling market participants to comply with the Swiss derivatives regulation by fulfilling the corresponding UK obligations.
Signature of a Bilateral Agreement between Switzerland and the UK To ensure the existing mutual rights and obligations of its citizens continue to apply after Brexit, Switzerland and the UK signed a Bilateral Agreement on 25 February 2019 guaranteeing the acquired rights of their citizens currently living abroad in the UK and Switzerland, respectively. This Agreement also governs the rules for UK citizens...
Is your code of conduct FinSA-proof? Under the Financial Services Act (FinSA), client advisors must know the FinSA Code of Conduct and display the ability to perform competently. To ensure that this is the case, PwC has devised a test that has become the new benchmark for financial service providers.
Brexit: The impact on immigration from a Swiss perspective The UK is an important partner for Switzerland in many areas, including migration. Switzerland wishes to ensure that the existing mutual rights and obligations in its relationship with the UK will continue to apply as far as possible after the UK leaves the EU.
Switzerland: Update on the new integration requirements applicable to foreign nationals as of 1 January 2019 Similar to other European countries, Switzerland has amended its immigration law to stipulate legally binding integration requirements for foreign nationals and to facilitate access to the Swiss labour market for recognised refugees and provisionally admitted persons.
Does gender pay legislation actually reduce wage differences between women and men? Several countries have developed or introduced gender pay legislations. This leads to the question whether this increase will reduced gender related pay differences. Is there any evidence of the impact?
How to implement successfully the Swiss Equal Pay law? The Swiss Parliament agreed last December on details for a revision of the equal pay regulation. This revised law is subject to referendum after which the Federal Council will decide on the final date of entry into force. What are the latest revisions and how can your company prepare for this upcoming legislation? Our PwC experts answer these...
FinSA: Fundamental changes for the cross-border provision of financial services The financial services industry will see some new regulations and requirements in 2020. For the first time, investment advisors will have to be entered in a client advisor register. They will also be required to affiliate themselves with an ombudsman. These and other changes are coming with the Swiss Financial Services Act.
EBA Outsourcing Guidelines It was expected, or at least there was wishful thinking, that MiFID II (2014/65/EU) and GDPR (Regulation (EU) 2016/679) would be the regulatory summit for our high mountain region. However, the European Regulator is continuing to pursue its overall goal of strengthening the regulatory framework in the European Union, which, in turn, is having a...
Data privacy law: a critical factor for M&A transactions Today, corporate decision makers are well advised to consider data privacy as early as possible. Finally, taking a broad view is paramount as some data privacy laws claim extraterritorial reach, such as the EU’s GDPR, leading to a complex overlap of national and regional data privacy laws.
USA re-imposing Iran Sanctions The U.S. government re-imposed sanctions that were lifted pursuant to the Joint Comprehensive Plan of Action (hereafter "JCPOA"), including sanctions on associated services related to further activities.
Blockchain banking – guidance for Swiss banks As the Swiss FinTech industry grows rapidly, uncertainty spreads across the traditional banking industry. Should Swiss banks do business with blockchain companies? On 20. September 2018, the Swiss Banker Association has published compliance related guidelines.
Consequences of the new Swiss Financial Institutions Act The rules and provisions under the new Swiss Financial Institutions Act (FinIA) will have an impact on proprietary traders in securities as participants to trading venues. Entities that have so far not been subject to regulation will need to become licenced as investment firms.
ElCom introduces its version of REMIT Switzerland has introduced its version of reporting obligations regarding electricity – but not gas (as with REMIT) - that relate directly to the obligations of Swiss domiciled entities under REMIT.
Whistleblowing to be regulated by law Violations of the law and ethical misbehaviour damage companies, the economy and society. Employees as well as third parties should have the opportunity to report misconduct to suitable bodies within a company or to authorities without having to fear disadvantages or sanctions.
EMIR Fitness Test European Market Infrastructures Regulation (EMIR) was the European Union’s (EU) response to systemic risks created by OTC derivatives. EMIR introduced an obligation for standardised and liquid OTC derivative contracts to be traded over a trading venue, a clearing obligation for OTC derivatives by means of a central counterparty (CCP), as well as...
Towards a harmonised European Crowdfunding & ICO Regime On 8 March 2018, the European Parliament and Council released a proposal for the regulation of commercial European Crowdfunding Service Providers (ECSP).
FINMA publishes new fact sheet on virtual currencies On September 3rd 2018, FINMA published a new fact sheet on dealing with virtual currencies, such as "Bitcoin". The fact sheet provides information on licensing requirements under financial market law and risks associated with the blockchain technology. This technology makes it possible to manage monetary units of virtual currencies in a computer...
Liechtenstein publishes draft of the new Blockchain Act On 28 August 2018, the Ministry for General Government Affairs and Finance of Liechtenstein published the consultation report on the new Blockchain Act. The new law aims to strengthen the legal certainty for users and service providers in order to further promote the positive development of the "token economy" in Liechtenstein and, at the same...
FINMA opens consultation on AMLO-FINMA In mid-June 2018, the Parliament decided to create a new licence category in the Banking Act to promote innovation in the financial markets sector. On August 28th 2018, the Swiss Financial Market Supervisory Authority FINMA opened a consultation of the revised AMLO-FINMA until the 26th October 2018.
Avoiding the pitfalls to launch a successful ICO in Switzerland In this blog post we look at initial coin offerings: what they are, how they work, and the things to bear in mind if you’re intending to launch an ICO that raises funds and does your reputation good.
What FinSA and FinIA mean for Swiss financial institutions This brochure has been made available by PwC Legal to give you an overview of the main issues and of the initial effects, with the intention of helping you get an overall view of the ways in which the Swiss financial market is regulated and of the next steps to be expected.
The new European rules for securitisations The EU has enacted a new set of regulations applicable to securitisations and a more specific framework for simple, transparent, and standardised securitisations (“Regulation”).
EU Benchmarks Regulation and Market Impact as of 1 January 2018 The new EU Benchmarks Regulation (BMR) was published in June 2016 and introduces new compliance requirements for benchmark administrators, contributors, a12345nd users, with regard to interest rate, foreign exchange, security, commodity, and other benchmarks used in financial transactions.
Latest Level 3 ESMA Q and As related to MiFID II-MiFIR ESMA published and updated in the last couple of days additional Level 3 Q&A papers. Due to the specification and clarification purposes of the Level 3 papers, this should help you during and after the implementation phase and could clarify open questions.
FINMA publishes partially revised circular on "video and online identification” From 13 February 2018 to 28 March 2018 the Swiss Financial Market Supervisory Authority FINMA conducted a public hearing on the draft of the partially revised FINMA Circular 2016/7 "Video and online identification". FINMA published the partially revised circular on 17 July 2018. The aim of the partial revision is to adapt the Circular to the...
New updates on the safe-keeping duties for depositaries of Alternative Investment Funds The European Commission has published a draft delegated regulation proposing to amend the Delegated Regulation (EU) No 231/2013 to the Alternative Investment Fund Managers Directive (AIFMD) as regards safe-keeping duties of depositaries for Alternative Investment Funds (AIFs). The newly proposed obligations would address depositaries and...
FinSA and FinIA: Differences resolved between the National Council and the Council of States On 12 June 2018, the National Council resolved the last differences on the Financial Services Act (FinSA) and the Financial Institutions Act (FinIA). Thus, the FinSA and the FinIA are ready for the final votes, which will take place on Friday, 15 June 2018.
Get up to Speed on the EEA Agreement Amendment On 31 May 2018 the EEA Joint Committee reached a decision without reservation regarding the implementation of Solvency II Level 2 and EMIR Level 2 frameworks. Thus, as of 1 June 2018, the EMIR and Solvency II Level 2 delegated acts are applicable to Liechtenstein, Norway and Island.
EMIR Transaktionsreporting und Solvency II in Liechtenstein Go Live – Kommen Sie auf den neusten Stand bzgl. der EWR Vertragsergänzung Am 31. Mai 2018 beschloss der gemeinsame EWR-Ausschuss die vorbehaltslose Implementation der Solvency II Level 2 und der EMIR Level 2 delegierten Rechtsakte. Folglich wurden per 01. Juni 2018 die EMIR und Solvency II Level 2 Rechtsakte in Liechtenstein, Norwegen und Island anwendbar.
FinIA and FinSA on the right track On 29 May 2018, the National Council passed its resolution on the Financial Services Act (FinSA) and the Financial Institutions Act (FinIA). Shortly thereafter, on 4 June 2018, the Council of States discussed about FinSA and FinIA and resolved the following differences:
FINSA and FINIA: Only few differences remaining On Tuesday 29 May 2018, the National Council discussed again about the Financial Services Act (FinSA) and the Financial Institutions Act (FinIA). After the resolution of the National Council a few differences remain to the text approved by the Council of State.
How tightened corruption laws affects compliance management systems With the revision of the Criminal Law on Corruption, the criminal responsibility of companies and their management is gaining in importance.
Switzerland introduces the clearing obligation for certain derivatives for FC+ and NFC+ The Swiss Financial Market Supervisory Authority FINMA has recently announced that it will introduce the clearing obligation, meaning to clear certain derivatives over central counterparties, under the Swiss Financial Market Infrastructure Act (FMIA) that are traded by counterparties having the status of either an FC+, meaning large Financial...
A primer on cryptocurrencies trading regulation in Switzerland This primer seeks to give an overview of the key obligations under Swiss regulatory laws related to cryptocurrencies and asset management related to cryptocurrencies.
An initial coin offering (ICO) or a token sale is when a company sells a predefined number of digital tokens to the public in a limited period of time. The ICO market has grown very rapidly in recent months and has been a new avenue for blockchain-based start-ups and projects to get the funding needed to launch their projects.
Partial entry into force of the Swiss DLT-act On 1 February 2021, the parts of the Swiss DLT-act that introduce ledger-based securities (i.e. register uncertificated securities) to Swiss law have entered into force. The remaining provisions of the DLT-act will enter into force on 1 August 2021.
The E-ID Act from a data protection perspective On 7 March, the E-ID Act will be put to the vote in Switzerland. Especially in the area of data protection, opponents and supporters disagree on the extent to which the introduction of the law would cause problems.
Platform Economy: Prepare for the future and outshine with an online matchmaker Platform business models has changed how businesses are conceptualised and conducted. Interested to know more about the value of a platform business model?
A unique opportunity to become a responsible business role model With the narrow rejection of the Swiss Responsible Business Initiative (RBI), Swiss companies will have the challenge of aligning with stricter, EU-inspired standards in terms of corporate disclosure and sectoral human rights due diligence. In this blog post we explain how you can take the reins and become best in class – and why the current...