Five things to remember about Basel III

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After more than a year of stalled negotiations, the Basel Committee on Banking Supervision (BCBS) announced an agreement on the remaining elements of the Basel III post-crisis bank capital framework. Striking a deal on this package of reforms (often called ‘Basel IV’) is a significant milestone in the post-crisis regulatory journey and a huge achievement for the BCBS.

The announced framework bridges a gap – particularly between American and European regulators – on the extent to which banks can use internal models to determine their capital requirements.

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Posted on 14/12/2017 | 0 Comments

PSD2 standard on secure communication: a balancing act

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The European Commission published the final Regulatory Technical Standard (RTS) on Strong Customer Authentication and Common Secure Communication under the revised Payment Services Directive (PSD2). In this final version, the Commission confirmed that screen scraping[1] will no longer be allowed once the RTS comes into effect, heeding concerns expressed by the European Banking Authority (EBA) and other stakeholders around security. However, Account Servicing Payment Service Providers (ASPSPs) will still be required to put in place contingency measures in case of unavailability or under performance of their dedicated interfaces during a communication session with Third Party Providers (TPPs).

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Posted on 12/12/2017 | 0 Comments

Business climate brightening across Europe – but financial service companies are lagging behind

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Long awaited, 2017 finally saw the economic turn-around in Europe. Growth is accelerating, albeit from a very low base. And the business outlook for 2018 is bright, as the latest results of the European CFO Survey show (and as is the case for the Swiss results). Optimism is growing, especially for revenues, perceived uncertainty remains high but is receding, hiring and investment intentions are increasing. The outlook for financial service companies is improving as well, but is lagging behind other industries. Margins in particular continue to be more of a problem.

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Posted on 6/12/2017 | 0 Comments

The Saudi Corruption Probe: What a Swiss Compliance Officer should know and do about the topic

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The known facts

The Saudi Arabian Crown Prince (Prince Mohammed Bin Salman) created an Anti-Corruption Committee on 4 November 2017. Subsequently, the Attorney General (Sheikh Saud al-Mojeb) ordered the arrests of several high profile individuals in Saudi Arabia. The targeted individuals include approximately 200 people, including high-ranking princes, as well as a number of the Kingdom’s most prominent business men and former senior officials. The Attorney General is allegedly investigating systematic corruption and embezzlement going back decades and mentioned an expected offense sum of at least USD 100bn.

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Posted on 29/11/2017 | 0 Comments

CFOs looking ahead to 2018 with confidence and optimism

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When looking ahead to 2018, Swiss CFOs are optimistic, as the latest CFO Survey results show. Over the next 12 months, their expectations of the economy, their own company’s business, revenues, operating margins and investment are all positive. They are, however, also more concerned about currency and internal risks, with expectations for employee numbers down on Q2 2017 but still positive. Bank CFOs are as optimistic as those of other sectors, but margins continue to be far more of a problem.

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Posted on 22/11/2017 | 0 Comments

EU Benchmark Regulation: Our Translation, your Transition and the Timeframe

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The European Commission’s Regulation on indices used as financial benchmarks in financial instruments and financial contracts (the Regulation) goes live on 1 January 2018. It forms part of the EU’s response to a series of high profile investigations in recent years into the alleged manipulation of key financial benchmarks, including LIBOR. These investigations raised concerns over the reliability and integrity of financial benchmarks, which underpin transactions worth trillions of dollars. The Regulation aims to reduce the risk of manipulation, bolster the reliability of benchmarks administered and ultimately provide a safer environment for the use of benchmarks in the EU.

As the countdown to the Regulation begins, we examine some key considerations for firms in the upcoming weeks and months.

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Posted on 20/11/2017 | 0 Comments

Is Regtech “The next big thing”? – Second part

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After Fintech, there has been increasing talk in the past year about Regtech. But what does Regtech actually mean, and when is it used? Is Regtech really “the next big thing” in the finance industry? Regtech is the fusion of the two words “regulatory” and “technology”. With Regtech, finance service providers can manage compliance tasks through an automated process. Since compliance is so expensive for the financial services industry, could Regtech be the answer to questions about regulatory efficiency?

In our first blog we explained what Regtech means, what value it adds, and whether Regtech is a form of Fintech. In this blog we will focus on the history of Regtech, why banks are focussed on Fintech and who develops Regtech.

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Posted on 13/11/2017 | 0 Comments

Register to our QI and FATCA Responsible Officer Compliance Certification Event

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Now is the time for QI and FATCA ROs and tax compliance managers to begin preparing for the first certifications under the new QI agreement as well as the FATCA regime. To assist, Deloitte is hosting educational events in our Zurich and Geneva offices to provide information on QI and FATCA compliance and will share insights regarding the periodic review and certification process.

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Posted on 10/11/2017 | 0 Comments

Is Regtech “The next big thing”? – First part

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After Fintech, there has been increasing talk in the past year about Regtech. But what does Regtech actually mean, and when is it used? Is Regtech really “the next big thing” in the finance industry?

Regtech is the fusion of the two words “regulatory” and “technology”. With Regtech, financial service providers are able to manage compliance tasks through an automated process. Since compliance is so expensive for the financial services industry, could Regtech be the answer to questions about regulatory efficiency?

We will answer six key questions about Regtech in two blogs. In this first blog you will learn about what Regtech is, what value it can deliver and whether or not it is a form of Fintech. The second blog will focus on the history of Regtech, why banks are focussed on Fintech and who develops Regtech.

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Posted on 8/11/2017 | 0 Comments

5 insights on how robotics can drive financial services compliance modernisation

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RPA (Robotic Process Automation) has been implemented widely across financial services institutions to help drive efficiency and effectiveness. As these institutions consider other operations or functions that could benefit from RPA (Robotic Process Automation), compliance stands out as a strong candidate, particularly the area of monitoring and testing.

By understanding the opportunities for compliance automation, taking important preparatory steps, and addressing key implementation considerations, including performing appropriate cost/benefit analyses, financial services institutions can be better prepared to tap into RPA’s potential. Here are five insights on how RPA can enable compliance modernisation in financial services.

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Posted on 2/11/2017 | 0 Comments

SFTA update regarding taxation of bonds and derivative financial instruments

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On 3 October 2017, the Swiss Federal Tax Administration (“SFTA”) has updated Circular No. 15 regarding the taxation of bonds and derivative financial instruments.

Modifications have been made regarding mostly one-time interest bearing bonds, capital-guaranteed derivatives, bonds issued by foreign group companies with the guarantee of a related Swiss group parent company and structured products. Furthermore, welcome clarifications have been included regarding the tax impact of negative interest rates.

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Posted on 27/10/2017 | 0 Comments

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