Switzerland: Regulation and rescue

Author: | Published: 1 Jun 2011

In the aftermath of the financial crisis, several legislative proposals were made in Switzerland addressing the regulation of banks and broker-dealers. As regards derivatives transactions, the reform of the bank reorganisation proceedings regulated by the Swiss Banking Act of November 8 1934 and the too-big-to-fail legislation that has recently been proposed by the Swiss government regulating banks of systemic importance are relevant.

Banking Act Reform Bill On May 12 2010, the Swiss Government proposed a bill to amend the Swiss Banking Act (the Banking Act Reform Bill) through, among other things, the introduction of new bank reorganisation proceedings. Whereas some parts of the Banking Act Reform Bill relating to depositor protection rules already are in force today (on a temporary basis), the other parts of the Bill (including the revised bank reorganisation proceedings) were adopted by the Swiss Parliament on March 18 2011. The date when such parts of the Banking...