Author Archives: Rashid Bahar
Regulation of Financial Market Infrastructures under the preliminary draft for a Financial Market Infrastructure Act
As the consultation period for the preliminary draft of a Financial Market Infrastructure Act (E-FinfraG) reached its term, we survey the proposed regulation of providers of financial market infrastructure services. This new framework complements the regulation of over-the-counter derivatives described in previous articles (see CapLaw-2014-5 and CapLaw-2014-6).
By Rashid Bahar/Roland Truffer (Reference: CapLaw-2014-13)
Market Abuse and Takeover Law – A New Start under Swiss Law
Market Abuse and Takeover Law – A New Start under Swiss Law
On 28 September 2012, the Swiss parliament passed a bill amending the Stock Exchange Act (SESTA). The amendment, which is due to enter in force on 1 April 2013, introduces fundamental changes to market abuse and takeover law, as well as other minor revisions of Swiss securities laws: it overhauls the market abuse regulations by introducing a new administrative enforcement regime and introducing heavier criminal sanctions for insider dealing and market manipulation. Second, it extends the scope of application of Swiss takeover law and disclosure rules, while introducing a strict regime of equal treatment of investors in connection with mandatory bids.
Accounting to Clients for Trailer Fees and Inducements— The Decision of the Swiss Supreme Court 4A_127/2012 and 4A_141/2012 of 30 October 2012 and its Regulatory Consequences
In a recent decision of 30 October 2012, the Swiss Supreme Court held that banks are, as a matter of principle, obliged to account to their clients for inducements and trailer fees they received in connection with portfolio management agreements. Moreover, in the wake of this decision, FINMA issued guidance to all banks requiring them to inform all affected clients of this decision and implementing appropriate procedure to respond effectively to client claims.