Blog: Regulatory highlights in the financial services sector – Summer edition 2022 – Lexology

EY’s Regulatory Update provides a clear and forward-looking view of regulatory developments of relevance to financial institutions.

In brief

  • EY, in collaboration with the Association of Foreign Banks in Switzerland (AFBS), shares the latest and upcoming regulatory developments in the financial sector.
  • 2022 is a busy year in terms of new legislation in the financial world, on the Swiss, and European/International level.
  • Financial stability, sustainability and customer protection are more than ever at the heart of the concerns of legislators and regulators.

EY’s Regulatory Update provides a clear and forward-looking view of regulatory initiatives of relevance to financial institutions in Switzerland. Change in the financial sector is constant. Due to strict regulatory requirements as well as rapid technological advances, financial institutions are cornered to adapt quickly and efficiently in order to be able to ensure compliance.

EY’s biannual regulatory update – published in collaboration with the Association of Foreign Banks in Switzerland (AFBS) – provides an overview on these regulatory developments affecting the Swiss and European markets. This year’s summer edition updates readers on the laws and regulations that have come into force between December 2021 and August 2022. It provides an outlook on the most important Swiss as well as relevant European and international developments expected from December 2021 onwards.

The Regulatory Update is structured into eight topics (banking and capital markets, sustainable finance, anti-money laundering, sanctions, tax, digital, Covid-19 and miscellanea). Each of these topics has been chosen in such a way that an interested reader will acquire a comprehensive set of laws and regulations that, in principle, would apply for financial institutions.

2022 is already shaping up to be a busy year for financial institutions as well as wealth and asset managers in Switzerland and around the world. Indeed, the year 2022 marks the end of the transition period and the finish line of number of laws, regulations, and organizational guidelines. In addition, important texts have been revised, which implies for the actors the effective implementation of consequent changes. Financial stability, sustainability and customer protection are more than ever at the forefront of legislators’ and regulators’ concerns.

The topic of sustainable finance remains highly relevant with the entry into force of the legal provisions aimed to increase individual’s and environment’s protection. In addition, Switzerland and the EU introduced further transparency guidelines and regulations regarding climate risks and the prevention of greenwashing.

The Financial Crime sector is experiencing changes with the entry into force of the new AML Act and the necessity to adapt the AMLO-FINMA to the new standards. On the European level, the new Authority for anti-money laundering is giving high hopes of a future harmonized regulation among all Member States.

Sanctions are a new topic in the regulatory update, as Switzerland and the EU enacted sanctions against Russia and Belarus this year as part of a response to the war in Ukraine. In the field of tax, the Federal Act on the Implementation of International Tax Agreements and the associated Ordinance has entered into force, whereby the Federal Council is aligning the existing legal framework with developments in international tax law. The pipeline of tax future developments includes the revision of the VAT and the withholding tax Acts as well as the upcoming in force of the BEPS 2.0 Pillar Two.

From a digital point of view, the European Union policymakers have agreed on landmark legislation to regulate crypto assets and certain DLT service providers, with the legislative process expected to be completed later this year.

Switzerland announced the lifting of the remaining Covid-19 restrictions as of 1 April 2022 and the responsibility for measures containing the virus has been handed over to cantonal authorities. The pandemic will nevertheless be of long-term relevance and therefore it is crucial to monitor the development of Covid-19 and its regulation.

Lastly, under the “Miscellanea” section, the regulatory update explores topics such as the credential stuffing, and developments in terms of the crowdfunding regulations.

Thanks to our deep understanding of these topics, EY can help financial services organizations keep pace and maintain excellence in an increasingly digital, complex and interconnected world.

Read Regulatory highlights in the financial services sector – summer 2022 edition.

Summary

The summer 2022 edition of EY’s Regulatory Update offers a useful overview of new and upcoming regulations in the areas of banking and capital markets law, sustainable finance, KYC, anti-money laundering, sanctions, tax, digital, Covid-19 and miscellanea.

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