We would like to ensure that you are still receiving content that you find useful – please confirm that you would like to continue to receive ILO newsletters.
10 January 2020
On 1 January 2020 the Swiss Financial Market Supervisory Authority (FINMA) implemented various revised rules primarily targeting small banks (the so-called 'small banks regime'). Among other aspects, this will result in a relaxation of IT outsourcing requirements for financial institutions. In this respect, a revised FINMA Outsourcing Circular is available in English and German, French.
Under the pre-existing FINMA regulation on IT outsourcing, outsourcing services providers could make use of subcontractors for significant functions only on the financial institution's prior approval. This proved difficult to implement in practice, as it was overly restrictive and cumbersome for the outsourcing services providers whose service model often requires a similar set-up for its clients. FINMA consequently replaced the requirement for prior approval from the financial institution. Providers must now simply inform the financial institution of the use or replacement of a subcontractor for significant functions at an early stage and the financial institution must retain the option of terminating the outsourcing relationship should it wish to do so. In addition to the change regarding the use of subcontractors, which applies to all financial institutions irrespective of their size, FINMA also lessened certain requirements for so-called 'small banks'.
The amendments to the FINMA Outsourcing Circular are positive and a step in the right direction, as they will allow financial institutions to enjoy more leeway to benefit from IT outsourcing services.
For further information on this topic please contact Jürg Schneider, Hugh Reeves or Christophe Gösken at Walder Wyss by telephone (+41 58 658 58 58) or email (email@example.com, firstname.lastname@example.org or email@example.com). The Walder Wyss website can be accessed at www.walderwyss.com.
The materials contained on this website are for general information purposes only and are subject to the disclaimer.
ILO is a premium online legal update service for major companies and law firms worldwide. In-house corporate counsel and other users of legal services, as well as law firm partners, qualify for a free subscription.