Basel, 1 February 2005 – The Swiss Bankers Association (SBA) is pleased to note that the Zimmerli Commission of Experts has taken into account the SBA’s criticisms of the original proposal for a sanctions system. The SBA’s views are given in its Position Paper on the Commission’s Second Part-Report. However, the SBA believes there is still room for improvement in individual areas, such as the publication of legal supervisory measures. At the same time the SBA repeats its demand that the Money Laundering Control Authority be rapidly integrated into the new supervisory authority FINMA and stresses the urgency of subjecting independent asset managers to supervision.

In its Position Paper issued today the Swiss Bankers Association (SBA) says it is satisfied with the Zimmerli Commission of Experts’ Second Part-Report on the draft Federal Law on Financial Markets Supervision. The SBA acknowledges that the report puts forward moderate solutions to various problems in the proposed sanctions system. An earlier Sanctions Report by the Swiss Federal Banking Commission had been criticised by the banks and the new Report has largely taken these criticisms into account.

In its Position Paper the SBA suggests a few additional improvements in administrative and criminal law. The SBA’s main concern has to do with the question of the publication of legal supervisory measures. The SBA welcomes the fact that, compared with the Federal Banking Commission’s Sanctions Report, publication of such measures will now be more restrictive and will only be allowed following a final legal judgement. This means, for example, that the legally-dubious practice of "naming and shaming" will at least be put on a legal footing and will be open to appeal. The SBA also appreciates the fact that publication will be based on the precondition that a serious violation of supervisory regulations has taken place and can therefore only take place when a serious act of wrongdoing justifies it. This means it will no longer be possible to release the names of banks involved in a case while investigations are still underway.

The SBA also takes this opportunity to refer to two important demands that were also made in its Position Paper about Part-Report l of the Zimmerli Commission. The SBA welcomes the Federal Council’s intention of including the Money Laundering Control Authority in the new supervisory authority FINMA as soon as the latter comes into operation. At the same time the urgent issue of the supervision of independent asset managers must be tackled and put on a legal basis. The new EU Funds Directive is due to enter into force at the end of 2006. This will affect asset managers who will need a licence to manage portfolios with EU-domiciled investment funds.  The SBA is pleased that the Federal Banking Commission has already said it is prepared to give these asset managers a security dealer’s permit on a case-by-case basis. In addition the SBA believes there is a need for a legal foundation and suggests going forward on a step-by-step basis. In the first instance a special category of securities dealer with the description "Asset Manager" should be created. This could be done at short notice in the framework of the Stock Exchange Law with a revision of the Ordinance. This would allow Switzerland to prevent the significant fund management business for EU investment funds from going abroad.

PDF Position Paper (German only)

Contacts
Thomas Sutter	James Nason
Head of Communications Switzerland	Head of International Communications
Swiss Bankers Association, Basel	Swiss Bankers Association, Basel
Tel. +41 61 295 92 06	Tel. +41 61 295 92 15
Fax +41 61 272 53 82	Fax +41 61 272 53 82
www.swissbanking.org	www.swissbanking.org