On 11th December 2020, Switzerland gave Distributed Ledger Technology another green light, as parts of the Federal Act on the Adaptation of Federal Law to Developments in Distributed Ledger Technology (DLT bill) will be brought into force from 1st February 2021. The DLT bill was introduced to drive innovation and support new technologies in Switzerland and from February 2021, it will allow for blockchain the introduction of ledger-based securities and register value rights. As the bill regulates the wide range of tech-related issues, the new legislation will be implemented gradually, and the remaining provisions included in the bill will become applicable on 1st August 2021. What is interesting is that requirements on ombudsman affiliation are set to change as of 1st February 2021. Only financial service providers serving private clients will be subject to the ombudsman affiliation requirements. Those, who work solely with institutions or professional clients will be exempted from such requirements. How will it work in practice?
Are new ombudsman affiliation requirements business-friendly?
Currently, all financial providers are legally required to affiliate with an ombudsman by 25th December 2020, but after 1st February 2021, things will change, and ombudsman affiliation requirements will only apply to financial service providers serving private clients. The change in legislation was made to simplify and improve the regulatory maintenance for financial institutions, and it will be brought to force at the earliest possible date, the referendum deadline — 1st February 2020. Switzerland’s efforts to streamline and regulate the financial market are designed to accelerate the development of FinTech in Switzerland and make the country the front-runner of the financial revolution and the global capital of regulated innovation.