Banking Law Committee Journal - Summer 2019

 

In This Issue

Banking

Compliance Implications of Recent DLT and Blockchain Related Developments for Financial Institutions

Facebook’s announcement that it will seek to roll out a cryptocurrency called Libra signals the advent of cryptocurrency’s ascent into the mainstream. It marks a tipping point as access to Libra would expose many of the company’s massive global userbase to cryptocurrencies for the first time. That said, Big Tech is not the only leader in the space. Financial institutions are also drivers of innovation for the distributed ledger and blockchain technologies that underlie cryptocurrencies like Libra. Financial institutions have invested significant resources in the research and investigation of potential use cases, launched proof-of-concept pilot programs, and collaborated with others. They are already subject to a comprehensive framework of laws and regulations under the Bank Secrecy Act and supervisory regimes.

Banking

New Rules For US Financial Service Providers That Provide Cross-Border Financial Services In Switzerland Or Produce Financial Instruments For The Swiss Market

The provision of cross-border financial services by US financial service providers, as well as the creation of financial instruments for the Swiss market, will be regulated comprehensively by the new Swiss Financial Services Act (FinSA), which is expected to enter into force on 1 January 2020. The new duties include information, documentation, behavioral, interest related and organisational obligations as well as the obligation to enter involved client advisors into a client advisor register and to affiliate with the Swiss Ombudsman for financial services.