Capital Market Regulations in Switzerland

Capital Market Regulations in Switzerland

Updated on Monday 26th October 2015

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Capital-Market-Regulations-in-SwitzerlandThe Securities Law in Switzerland

The main legislation regulating the Swiss securities market are the Stock Exchange and Securities Trading Act of 1995 and its ordinances:

  • -          the Stock Exchange and Securities Trading Ordinance,
  • -          the Ordinance of the Swiss Financial Market Supervisory Authority on Stock Exchanges and Securities Trading,
  • -          the Ordinance of the Swiss Takeover Board on Public Takeover Offers.

The Swiss Government is also preparing two new draft legislations which are intended to increase the protection provided to foreign companies listing shares on the Swiss Stock Exchange. The Government also wants to amend the Financial Market Infrastructure Act in order to comply with EU regulations with respect to the infrastructure of financial institutions.

For complete information about the legislation on trading securities you can refer to our Swiss lawyers.

Listing requirements in Switzerland

According to Article 10 in the Stock Exchange and Securities Trading Act, both foreign and Swiss companies wanting trade on the capital markets are required apply for a license with the Financial Market Supervisory Authority (FINMA). The securities that can be traded on the Swiss capital markets are:

  • -          certificates appropriate for mass trading,
  • -          intermediated securities,
  • -          derivatives.

Assets managers and investment advisers are also required to apply for a license with FINMA, according to the Swiss Collective Investment Schemes Act. Under the Swiss capital market regulations in order to obtain a securities dealer license one must:

  • -          deposit a minimum capital of 1.5 million CHF,
  • -          the applicant must have sufficient knowledge about trading securities,
  • -          the applicant the company’s shareholders must have a proper conduct.

Foreign companies wanting to trade on the Swiss capital markets are also required to obtain a dealer license with FINMA if they want to open a branch in Switzerland, or want to be domiciled in the country.

Listing requirements for trading on Swiss capital markets

Local and foreign companies trading in Switzerland are required to:

  • -          make sure the documents of incorporation comply with the legal requirements of their home country.
  • -          make sure the company can make all required payments,
  • -          meets all international accounting standards.

If you want to apply for a securities dealer license with FINMA and need assistance you can contact our law firm in Switzerland.