News

02 June 2009
News

FINMA Newsletter 2 (2009): Depositor protection – update of FAQ list

Art. 37b para. 5 BA requires banks and securities dealers to constantly hold 125 % collateral for privileged deposits, whereby the collateral comprises receivables secured in Switzerland or assets held in Switzerland. FINMA is authorised to permit exceptions to this rule when it has good reason to do so.

FINMA has developed a code of practice based on applications for exemption from this requirement that it has received. The code of practice is based on some general rules, some of which apply to all banks and securities dealers while others only apply to institutions seeking an exemption from Art. 37b para. 5 BA. The FAQ list has been updated to include these changes.