@stefan.buetler not seeing anything like PSD2 in Switzerland, I guess regulators have been busy with the new Fintech License, which is pretty radical.
At a Press Conference on Wednesday 2nd November the Swiss Finance Minister, Ueli Maurer, outlined the direction. This is not yet law, but it is clearly an officially approved direction. The plans include a consultation draft by the beginning of 2017 and draft legislation sent to the Swiss parliament by the middle of 2017.
These are the key features that Fintechs and Banks need to understand:
– No “maturity transformation” allowed. This is mandated Asset Liability Management and that eradicates systemic risk (no more bailouts) and favors Market Place Lending without any lending from their own balance sheet (for some background, please go here).
– Deposit Only License. You can provide deposit services, but not lend. You can accept up to SF100m once licensed. Separating Deposits from Lending is a bold and radical move in a world of NIRP. Deposits is a nascent area of Fintech innovation.
– Up to CHF 1 million via sandbox innovation area. This allows a startup to build an MVP and get to PMF before investing in being regulated
– minimum of SFr300,000 in capital (vs SF10m for banks). If a startup has got to PMF that is a very manageable hurdle.
– not covered by deposit protection (read, no risk to taxpayers). It is a buyer beware free market. I assume this leaves it up to Fintechs to create a Bankruptcy Remote Vehicle (US terminology) to reassure their customers.
– crowdfunding grace period in settlement account. This defines when donors can withdraw the money. Today it is 7 days. The proposal is to raise it to a 60 days. which would give the company greater security.
– No limit to how many lenders or investors for crowdfunding services.
– You must abide by money laundering rules applied to banks.
Switzerland is taking steps that are very conducive to innovation and is looking like a leader in the regulatory realm – a prospect that few would have dreamed of a year ago.