FMIA – ALL enterprises need to act before the year end!
Contact
Öffnungszeiten:
Monday to Friday
08.00 - 12.00 h / 13.00 - 17.00 hFernsupport durch Caminada:
The FMIA, which came into force on 1 January 2016, is intended primarily to secure Switzerland's access to international financial markets. The focus is on reporting, central billing and risk reduction measures in connection with derivatives.
The FMIA does not only affect typical financial institutions, but basically all companies listed in the commercial register in Switzerland. It is particularly to mention that even a single derivative transaction can trigger corresponding obligations. The regulation focuses not only on the reporting of derivatives and the central clearing, but also defines measures for the risk reduction of OTC (over-the-counter) traded derivatives.
If a company trades derivatives, obligations to be performed differ depending on the type of company. The legislator distinguishes between the financial counterparty (FC) and the non-financial counterparty (NFC). NFCs are companies that are not active in the financial industry. Consequently, FCs are companies such as banks or insurance companies.
As the FMIA specifications must be satisfied already for the business year 2017, every firm has to analyse its situation concerning derivatives. Our respective leaflet which can be found in the download section (available only in german), helps to understand the situation quickly and to take preventive measures before the year end.
In such cases, however, a written waiver by the Board of Directors (BoD) in the form of a BoD minutes is sufficient. Since compliance with the statutory provisions in the company must be reviewed by the auditors already in 2017, this should be initiated before the end of the year.
We have prepared the templates, which will help to fulfil the FinfraG regulations. Interested? Fabio Iovoli will be glad to help you with this.
