The government of Switzerland has proposed a new regulatory regime for financial technology firms to enhance competition in the country’s financial sector.
The measures proposed by the Switzerland's Federal Council include creation of a new fintech licence, which will be granted by FINMA to companies that offer deposit services but are not involved in lending services.
The government also proposed a sandbox, where a startup could accept public funds up to CHF1m and test new ideas under controlled conditions, without regulatory monitoring.
Further, the government also proposed a 60-day deadline for the holding of money in settlement accounts. The change is expected to particularly affect startups focus on crowdfunding.
Several financial industry leaders are now foraying into the fintech space to boost completion. Earlier this month, Australian Securities and Investments Commission (ASIC) and the Ontario Securities Commission (OSC) signed an agreement to support innovative financial technology companies in the two markets, and Abu Dhabi Global Market launched a fintech regulatory laboratory.
In September 2016, the Swiss Financial Market Supervisory Authority (FINMA) signed an agreement with Monetary Authority of Singapore (MAS) to expand cooperation on fintech.