Positions
Joint Associations Letter on Third Country Branches
Feedback on the Publication of the European Commission's Draft Capital Requirements Directive VI (CRD VI) - March 2022
On 27 October 2021, the European Commission published its Basel III implementing proposal, introducing new provisions on Third Country Branches (TCBs). In a joint letter addressed to Commissioner Mairead McGuinness and other EU policy makers, the American Chamber of Commerce to the European Union (AmCham EU), the Bank Policy Institute (BPI), the Japanese Bankers Association (JBA) and the Swiss Finance Council (SFC) have expressed concern about some of these proposed provisions.
The signatories of the letter support the Commission’s efforts towards harmonisation of banking supervision and standards across Member States, as this will bring enhanced transparency and strengthen supervision across the EU banking landscape. These provisions, however, must balance the objectives of bringing benefits to EU consumers, corporates and financial institutions through improved access, service choice as well as reduced friction and costs in financial services. Especially the obligation to set up a branch in each member state where a third country bank intends offering financial services (branch requirement) does not seem proportionate in relation to the objective. If implemented as currently drafted, it would have a detrimental impact on the ability of third-country banks to provide services to EU clients on a cross-border basis, leading to a reduction in service choice, less competition on prices of service offerings for European firms as well as a reduction in liquidity in EU financial Markets.
In our joint-position we therefore call for replacing the branch requirement with a more targeted, but not less effective harmonization approach. Existing bilateral market access agreements between EU Member States and third countries prove that national competent authorities (NCAs) can guarantee financial stability through their important role in licensing, supervising and monitoring third country bank activities in their territory without requiring banks to have a physical presence. Non-EU banks that operate under such national regimes in individual Member States must complete authorisation procedures with the competent authorities before starting cross-border activities. In the joint letter, we therefore encourage the EU legislator to reconsider a branch requirement and instead aim for minimum common standards that ensure continued cross-border market access based on sound supervisory, licensing and investor protection principles.
All other Positions
SFC response to EC targeted consultation on the functioning of the EU securitisation framework
December 2024
The EU securitisation market remains underdeveloped, limiting investment opportunities in EU financial instrument and constraining banks' ability to manage their balance sheets. The Swiss Finance Council (SFC) therefore supports the European Commission's intention to improve the functioning of the EU securitisation framework. In its response to the European Commissions’ consultation, the SFC emphasizes the need to adjust the prudential treatment and move towards a more principles-based approach to disclosure in order to unlock the potential of securitisation as a powerful financing tool.
SFC response to EC consultation on assessing the adequacy of macroprudential policies for non-bank financial intermediation (NBFI)
November 2024
The SFC has responded to the European Commission’s targeted consultation on assessing the adequacy of macroprudential policies for non-bank financial intermediation (NBFI).
SFC response on NBFI consultation
September 2024
The Swiss Finance Council has a strong interest in the targeted consultation on the effectiveness of the macroprudential framework for the Non-Bank Financial Intermediation (NBFI) sector. Swiss asset managers manufacture both Money Market Funds (MMFs) and Open-Ended Funds (OEFs) within the EU and manage and distribute them both within the EU and on a cross-border basis. Therefore, any changes to the EU macroprudential framework for MMFs and OEFs would have a direct impact on Swiss asset managers. More broadly, given the interconnectedness of EU and Swiss markets, there is need for continued international cooperation on the NBFI agenda.
SFC recommendations for the next EU legislative cycle
June 2024
Given that the EU and Swiss economies are closely interconnected, we have a shared interest in ensuring the international competitiveness of the European economy. Our members are therefore deeply committed to the EU’s goal of building an effective and open Capital Markets Union that helps capital flow to EU projects and business that are key for the transition towards a more sustainable and digital economy.
Response to the EBA’s Consultation on Draft Guidelines on the management of ESG risks under the Capital Requirements Directive (CRD 6)
April 2024
The Swiss Finance Council co-signed a response to the EBA’s Consultation on Draft Guidelines on the management of ESG risks under the Capital Requirements Directive (CRD 6)
SFC response to the ESMA consultation on reverse solicitation and classification of crypto assets as financial instruments under MiCA
April 2024
Swiss Finance Council response to ESMA consultation on draft guidelines on reverse solicitation under MiCA
Swiss Finance Council position on reduction of the settlement cycle to T+1
January 2024
The Swiss Finance Council has a strong interest in the discussion on shortening the settlement cycle to T+1 across equities, fixed income and ETFs in Europe because Swiss, EU and UK securities markets are closely interconnected and in the post-trade area apply the same principles and technical standards. This is a complex area that will require careful analysis and policy development to assist firms in managing the significant operational challenges that will stem from the transition.
Swiss Finance Council response to the European Commission’s consultation on the implementation of the Sustainable Finance Disclosure Regulation (SFDR)
December 2023
The Swiss Finance Council has an interest in the SFDR because our members operate as retail investment product manufacturers, distributors, and advisors, serving EU clients from both within the EU and on a cross-border basis.
Swiss Finance Council position paper on future of CMU
December 2023
The Swiss Finance Council welcomes the public reflection on the future of the EU Capital Markets Union (CMU) project. We believe that a particular focus should be given on measures that can bring more size into the EU capital market in the short and medium term and guide financing of the green transition.
Swiss Finance Council position paper on EU Financial Data Access Regulation
November 2023
The Swiss Finance Council believe that FIDA has the potential to unlock data sharing between wealth management firms, WealthTech firms and other service providers within the EU.
Swiss Finance Council position paper on EU Retail Investment Strategy
September 2023
The Swiss Finance Council has an interest in the EU Retail Investment Strategy because our members operate as both retail investment product manufacturers and distributors, serving EU clients from both within the EU and on a cross-border basis.
Joint association letter on CSDDD and transition plans
Joint association letter on CSDDD and transition plans – September 2023
Swiss Finance Council’s comments on draft ESRS Delegated Act
Swiss Finance Council’s comments on draft ESRS Delegated Act – July 2023
SFC position on Instant Credit Transfers in Euro - Amending the SEPA Regulation
SFC Position on Instant Credit Transfers in Euro : Amending the SEPA Regulation – May 2023
Joint amendments to the CSDDD
Amendments to the Corporate Sustainability Due Diligence Directive (CSDDD) proposal – November 2022
SFC Position on an EU Open Finance Framework
Open Finance Framework in the EU: For a broad, competitive, attractive and fair approach to data sharingl – October 2022
Joint association letter on CSDDD
Feedback on the proposed Corporate Sustainability Due Diligence Directive (CSDDD) – August 2022
Joint association letter on CSRD
Feedback on the proposed Corporate Sustainability Reporting Directive (CSRD) and related Article 8 Taxonomy disclosures - April 2022
SFC Position on Third Country Branches
CRD VI Commission proposal on Third Country Branches (TCB): Position on market access, booking, liquidity and authorisation requirements (Art 47 and 48 CRD VI) - April 2022
SFC Position on the Corporate Sustainability Reporting Directive (CSRD) proposal
Corporate Sustainability Reporting Directive (CSRD) proposal - December 2021
Joint letter on the treatment of incoming third country branches
Joint letter on the treatment of incoming third country branches - September 2021
SFC response to European Commission consultation
European Commission consultation on the draft EU Taxonomy Article 8 Delegated Act - June 2021
SFC response to European Commission consultation
European Commission Consultation on the Renewed Sustainable Finance Strategy - July 2020
Joint letter to Vice-President Dombrovskis
Joint letter to Vice-President Dombrovskis: “Investment Firm Regulation – third country firm regime" - November 2018
Joint letter to EU Finance Ministers
Joint letter to EU Finance Ministers in response to the proposal for an EU Digital Services Tax - November 2018
SFC letter to Vice-President Dombrovskis
Public consultation on Fintech: a more competitive and innovative European financial sector - June 2017
SFC Response to European Commission Consultation
Call for evidence: EU regulatory framework for financial services - January 2016
European Commission Consultation on the impact of CRR/CRD4 on bank lending
SFC response to European Commission Consultation on the impact of CRR/CRD4 on bank lending
SFC response to European Commission Consultation on EMIR Review
SFC response to European Commission Consultation on EMIR Review
SFC response to European Commission Green Paper on Capital Markets Union
SFC response to European Commission Green Paper on Capital Markets Union
SFC response to IOSCO Consultation on Cross-Border Regulation
SFC response to IOSCO Consultation on Cross-Border Regulation