Swiss FINMA publishes guidelines for applying for new fintech licences

Maria Nikolova

Applicants will have to submit information about the reasons for applying for the license and to prove that they comply with the relevant capital requirements.

As FinanceFeeds reported last week, the Swiss Federal Council has adopted the implementation of provisions for fintech authorisation. From the start of 2019, firms can apply for new fintech licenses. Given that the Swiss Financial Market Supervisory Authority (FINMA) is responsible for granting these licences, it has published guidelines aimed at simplifying the application process.

The licence applications must include certain general information about the applicants, such as the reasons for applying for such a licence, as well a description of the proposed activity and organisation, including the proposed business activity, geographical scope and target clientele. Information about the business premises, infrastructure and personnel also has to be included in the application.

The applicants also have to make sure that they meet a range of financial requirements. This means that they have to provide appropriate evidence of compliance with the minimum capital requirements.

In addition, the applicants have to inform the regulator about any changes relating to key documents (particularly the articles of association and organisational regulations), as well as changes relating to holders of qualified participations, and changes concerning the persons entrusted with the administration and management of the business.

FINMA will also supervise the institutions that receive the new fintech licenses.

The FinTech licence allows institutions to accept public deposits of up to CHF 100 million, provided that these are not invested and no interest is paid on them. A further requirement is that an institution with a FinTech licence must have its registered office and conduct its business activities in Switzerland.

Let’s also note that, under the Banking Ordinance, the Swiss sandbox will additionally be extended to include crowdlending business models, whereby public funds up to a total amount of CHF 1 million can one day be brokered not only for commercial and industrial purposes but also for private consumption. This extension has become possible because crowdlending will be subject to the Consumer Credit Act in the future.

Read this next

Retail FX

FP Markets adds exotic FX pairs from Africa, LATAM, Asia to MT4/5 offering

“As a top-tier broker, our objective is always client satisfaction. Therefore, the additional currency pairs, which can be traded either through our MT4 or MT5 trading platforms, offer investors choice and flexibility when trading in the currency market”.

Retail FX

BaFin warns that StakeFX Markets is clone broker of BaFin-regulated broker Stak FX

Users should always check the registration of any firm they are interested in working with by visiting the local regulator website’s broker check page.

Digital Assets

FTSE Russell launches multi asset index series covering digital asset market

“FTSE Russell has taken a measured approach to this frontier investment space and has built a rigorous and transparent framework, underpinned by robust governance and comprehensive data to meet investor needs, both where they are now and as they prepare for change in this market.”

Technology

Sell-side analysts spend +30h/week manually closing/investigating alerts, says study

An independent report by Acuiti, and commissioned by Eventus, has found that the increasing complexity of trade surveillance requirements, driven by regulatory demands and exacerbated by volatility, is putting pressure on manual processes and driving investment in automation. 

Digital Assets

Silvergate dismisses speculation of trouble, says BlockFi exposure is minimal

Crypto-friendly bank Silvergate Capital claimed on a Tuesday blog post that it had minimal exposure to crypto lender BlockFi, which filed for chapter 11 bankruptcy protection this week.

Retail FX

Fidelity launches crypto trading for retail investors

Fidelity Investments, one of the largest brokerages in the world, has officially rolled out a commission-free crypto trading product for retail investors, starting with zero-fee trading for Bitcoin and Ethereum.

Digital Assets

ECB head calls for tougher crypto regulation after FTX collapse

President of the European Central Bank, Christine Lagarde, has called on lawmakers to start working on fresh crypto regulations to protect the financial system after the collapse of the FTX exchange.

Retail FX

CySEC updates rules for regulated brokers’ cross border activity

As CySEC’s attitude of adopting more stringent licensing guidelines and operating regulations becomes ever clearer, certain aspects of the rules and operations start to come into sharper focus.

Market News

Outlook for Gold: Can the Precious Metal Regain Power?

Gold set an all-time high at $2070 on March 08, 2022, when the price skyrocketed amid investors’ worries about the military conflict in Eastern Europe.

<