MiFiD 2: what to expect in Switzerland?
The European Commission and the European Parliament agreed on the updated Markets in Financial Instruments Directive (MiFID 2) and on the Markets in Financial Instruments Regulation (MiFIR) on 15 April 2014.
The directive and regulation are not directly applicable to non-EU countries. However, MiFID 2 has introduced a specific regime for non-EU investment firms that provide cross-border services to clients in the EU. The directive is likely to have significant consequences in Switzerland, in particular among Swiss banks, securities dealers, independent asset managers and other Swiss financial intermediaries.
What impact will MiFID 2 and MiFIR have on Switzerland? First, Switzerland will have to amend its current legislation in order to ensure that Swiss financial institutions, including asset managers, will have unfettered access to the EU market. In particular, in order to provide services to EU clients — and in contrast to the present partial supervision as mainly concerns anti-money laundering — independent asset managers in Switzerland would be required to be subject to global supervision. Overall, Swiss regulations will have to guarantee that the level of protection for investors is equivalent to the EU provisions, and the Swiss regulatory and supervisory framework will need to comply with EU standards. Failure to comply with these requirements will result in a refusal by the European Securities and Markets Authority (ESMA) to issue its so-called ‘equivalence decision’ to enable Swiss financial institutions to be registered with ESMA and provide services to EU-based eligible counterparties and per se professional clients…
Click on the link below to read the rest of the Eversheds briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Eversheds
News from The Lawyer
Briefings from Eversheds
Ruling has significant consequences on dawn raids by French competition authorities, who must now be sure to exclude privileged and unrelated documents.
Trustees – consider the impact of transfers on your scheme’s funding position and investment strategy.
Analysis from The Lawyer
Eversheds is no stranger to an international tie-up but now it’s in the market for the jewel in its global crown
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all