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Banking

Switzerland

Overview
Including: Sources of Law; Regulation and Supervision of Financial Markets; Swiss Bankers Association; Banking Secrecy; Due Diligence Convention

The Federal Supreme Court recently rendered two landmark decisions regarding the extension of banking clients' options to obtain information, including internal documents, from banks. The court specified and expanded the information that must be passed onto banking clients. It also showed that the Federal Act on Data Protection could help clients looking for information held by a bank upstream of judicial proceedings.

SwissBanking – the Swiss bankers' association – has adopted a revised version of its Portfolio Management Guidelines. The revised guidelines, which were previously approved by the Financial Market Supervisory Authority, introduce major amendments regarding conflicts of interest and remuneration.

The Federal Supreme Court recently ruled on the issue of a bank's liability where it acts as a de facto body of one of its clients. It confirmed the established case law on the subject in a decision which will allow banks to continue to advise companies which are in difficulty without incurring the liability of a de facto body.

The Financial Market Supervisory Authority has issued a new circular stipulating minimum standards for financial institutions' remuneration schemes, thereby meeting the requirements of the Financial Stability Board and other international bodies. This update defines the scope of the circular's application and presents the main principles set out therein.

The agreement between Switzerland and the United States settling the UBS Case has entered into force. The settlement ensures compliance with the tax convention with the United States by applying a broad interpretation of the term 'tax fraud or the like' found in the two countries' agreement on double taxation.

In February 2009 the identities and account details of around 300 clients of UBS were transmitted to the US authorities following a decision of the Financial Market Supervisory Authority. The legality of this decision is being challenged before the Federal Administrative Supreme Court. Taxpayers with bank accounts in Switzerland would be well advised to monitor these developments closely.

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Commercial Property

Switzerland

Swiss lease law is being revised to protect tenants from excessive rents and from termination of lease. However, with opposing landlord and tenant associations exercising considerable significance in the revision process, it is unlikely that the existing law will be amended for some time.

The Federal Supreme Court has confirmed precedents which establish the extent to which lessees must tolerate nuisance caused by construction work, particularly at their leased premises and in their neighbourhood. It also outlined the legal measures which lessees can take in order to defend themselves against such nuisance.

Construction

Switzerland

Significant expansion at Switzerland's largest airports, particularly Zurich-Kloten, has resulted in a dramatic increase in air traffic noise. The proposed construction of a new runway will exacerbate the situation, and new building work in those areas exposed to the worst of the noise may no longer be allowed.

The Federal Supreme Court has confirmed precedents which establish the extent to which lessees must tolerate nuisance caused by construction work, particularly at their leased premises and in their neighbourhood. It also outlined the legal measures which lessees can take in order to defend themselves against such nuisance.

Including: Public Construction Law; Construction Permits; Private Construction Law

Environment

Switzerland

Overview
Including: New efficiency requirements for electric devices; New energy labelling for electronic devices; Extension of prepaid recycling fee to all types of battery; List of clean construction machine engines; Reduced fees for certain heavy vehicles; New energy labelling for passenger vehicles; Incentives to lower CO2 emissions of passenger vehicles; Amendments to Ordinance on Biocidal Products.

Residents living near Switzerland's largest airports have suffered for years from the nuisance of air traffic noise. Now, a treaty which proposes to restrict the number of inbound and outbound flights that may fly over German territory threatens to increase noise levels dramatically. This update explains the issues.

New legislation has reduced the noise limits applicable near civil airports and banned the commercial use of certain wood stains. The courts have been inundated with challenges to the construction of mobile phone masts and have also set guidelines on emissions of unpleasant smells.

Clean air legislation has had broad effects on traffic and on major construction plans that will result in dense public traffic. Construction permits can oblige car parks to levy charges so as to discourage shoppers from using their cars, and developers are required to build in locations that are well-connected to the public transport system.

The Federal Supreme Court has confirmed precedents which establish the extent to which lessees must tolerate nuisance caused by construction work, particularly at their leased premises and in their neighbourhood. It also outlined the legal measures which lessees can take in order to defend themselves against such nuisance.

Swiss legislation provides for the special treatment of sites that contain deposits, factory waste or hazardous materials which cause detrimental environmental effects. Since the purchaser of such land will be held responsible for the clean-up, this risk should be taken into account in the purchase agreement.

New legislation enacted recently includes a carbon dioxide law and ordinances on noise pollution caused by airports and construction sites. Meanwhile, the courts have ruled on restaurants’ opening hours with respect to noise pollution, and on legal requirements for the construction of dumps.

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