Sub-custody guide: Switzerland
A law proposal of the Swiss Federal Council has been
published to adapt the Financial Market Infrastructure Act (FMIA) in a way that
it is equivalent to Emir and international recommendations, although with more
than 80 requested changes from the industry it is expected that FMIA will not
be formally enacted before the end of 2015.
Also in 2014, the Federal Council launched a reform to
strengthen the capital market with the proposed introduction of the paying
agent principle for bonds instead of the current debtor principle.
In preparation for T2S, automated Swiss cross-ex
compensation will be replaced by the Europe-wide agreed best market practice
market claim procedure. Other important changes will be in the field of rights
trading with a move from T+2 to T+1 as well as a manual buyer protection
procedure, explains Ronald Akkermans, head custody, FI, sales and business
development at UBS.
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