Insights

The legal basis for the Limited Qualified Investor Fund (L-QIF) came into force on 1 March 2024 with the amendments to the Collective Investment Schemes Act (CISA) and the Collective Investment Schemes Ordinance (CISO). Based on the Luxembourg RAIF, this is intended to introduce a more flexible fund in Switzerland, as it already exists in various forms in EU countries. The aim is to strengthen the Swiss fund centre and make it more competitive.

As you know, new VAT rates have been in force since January 1, 2024. These are: standard VAT rate 8.1 % (previously 7.7 %), reduced rate 2.6 % (previously 2.5 %) and special rate for accommodation services 3.8 % (previously 3.7 %) as well as various changes under the net tax rate and lump-sum tax rate regime. In many cases, a VAT rate change is unproblematic and is implemented to the extent that the VAT rates on the invoices are adjusted. However, there are also constellations that are not quite so easy to handle and have different accounting and contractual effects depending on the specific case.

In December 2023, the Federal Council decided to introduce the OECD/G20 minimum taxation as of January 1, 2024 and will levy a top-up tax in Switzerland.

The Federal Council is proposing various measures on how the Anti-Money Laundering Act (AMLA) should be amended in future. It will submit the dispatch with detailed explanations to Parliament in 2024. This article provides you with an overview of the new draft legislation.

After thorough negotiations, the Berne Financial Services Agreement (BFSA), also known as Mutual Recognition Agreement (MRA) has been signed on 21 December 2023 by the UK and Switzerland. It will be likely soon ratified. Setting a milestone in the mutual recognition of financial market regulation the BFSA opens and refreshes cross-border market access for financial institutions in each of the two countries. We explain the BFSA and how you can make the most of it for your business.

Swiss Federal Tax Administration (FTA) annually publishes recognized interest rates applicable for tax assessments of advances and loans in Swiss francs and in foreign currencies.

On 21 December 2023, Switzerland and the United Kingdom signed the Berne Financial Services Agreement on mutual recognition in the area of financial services. The agreement is based on the mutual recognition of the equivalence of the respective legal and supervisory frameworks in selected areas of the financial sector. The aim of the agreement is to strengthen competitiveness and promote cooperation between the two major international financial centres and to enable and facilitate cross-border market access.

Since the end of the transition period on 1 January 2024, member institutions of the Swiss Bankers Association (SBA) have had to take into account the "Guidelines for financial service providers on the integration of ESG-preferences and ESG-risks into investment advice and portfolio management" in their new client business - for existing clients, the transition period runs until 1 January 2025. Below, we inform you about the main changes and outline the possible need for action for other financial service providers such as asset managers.

Artificial intelligence (AI) has been on the regulatory radar screen in Switzerland at least since the Federal Council's announcement in November 2023. At the same time, FINMA has formulated initial regulatory expectations for financial service providers when dealing with AI. The AI regulatory process in the European Union (EU) is even further advanced. The final version of its AI regulation ("AI Act") is expected in the first quarter of 2024. These developments also require Swiss financial service providers who wish to use AI systems to familiarise themselves with the planned regulation.

Switzerland abolishes the industrial tariffs in chapters 25–97 of the customs tariff. However, agricultural and fishing duties (in chapters 1–24) and duties for some goods classified as agricultural products (in chapters 35 and 38) remain in place.

Employed persons who are affiliated to a pension fund can pay a maximum of CHF 7,056 into pillar 3a in 2024. In 2024, the maximum Pillar 3a amounts remain unchanged compared to 2023.

On December 22, 2023, the Federal Council informed about their decision to implement the OECD minimum tax concept as planned by January 1, 2024. Switzerland therefore will be a frontrunner in the implementation of the OECD tax reform together with other major European OECD member states.

FINMA Circular 2023/1 “Operational risks and resilience – banks” comes into force on 1 January 2024. When the revised FINMA Circular comes into force, significant adjustments will be made in the areas of information and communication technology (ICT) risk management and critical data risk management. New requirements for ensuring operational resilience must also be observed. What are the most important aspects of the circular and what significance does it have for FinIA institutions?

Die FINMA führte im Frühling 2023 eine Erhebung zur Geldwäscherei-Risikoanalyse bei über 30 Banken durch und stellte erhebliche Defizite fest. Sämtliche Geldwäschereirisiken, denen ein Finanzintermediär ausgesetzt ist, müssen identifiziert, erfasst, analysiert und bemessen werden. Dies beinhaltet auch das Festlegen einer Risikotoleranz mit Schwellenwerten. Damit wurde ein komplettes Geldwäscherei-Risikomanagement erwartet, was die FINMA in ihrer Aufsichtsmitteilung 05/2023 vom 24. August 2023 schliesslich publizierte.

Liechtenstein hat sich in den letzten Jahren zunehmend als Vorreiter in Sachen Nachhaltigkeit und verantwortungsvoller Unternehmensführung etabliert. Die Umsetzung von EU-Vorgaben von Umwelt-, Sozial- und Governance-Aspekten (ESG) steht im Fokus.

What financial service providers have to consider in regulatory change management from the auditor's point of view.