Swiss contractual stay requirements

Under the new Article 30a of the Swiss Banking Act, FINMA is enabled to impose a temporary stay on termination of contracts in the case of an impending insolvency of a financial institution. In addition, the Swiss Banking Ordinance newly includes the prohibition of a choice of foreign law or foreign jurisdiction without the contractual recognition of such temporary stay.

The new provisions on the temporary stay on termination of contracts have been in force since 1 January 2016. Swiss institutions had to implement these provisions by 1 April 2018 for contracts with banks and securities dealers as counterparties and by 1 October 2018 for contracts with other counterparties…