Federal Council refrains from greenwashing regulation of the financial sector
Published: Wednesday, Jun 19th 2024, 11:30
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The Federal Council believes that the Swiss financial sector's self-regulation against greenwashing is currently sufficient. Consequently, it is refraining from state regulation for the time being, as stated in a communiqué issued on Wednesday.
However, the Federal Department of Finance (FDF) is to re-evaluate the need for action by the end of 2027 at the latest. This is in view of possible adjustments to the disclosure requirements in the European Union's financial sector.
In December 2022, the Federal Council decreed the prevention of greenwashing in the financial sector. This refers to the deception of customers regarding the sustainable characteristics of financial products and services.
Last October, the Department of Finance announced that it would present a draft ordinance by the end of August 2024. However, if the financial sector is able to demonstrate self-regulation, regulation would be dispensed with.
The Swiss Bankers Association, the Asset Management Association Switzerland and the Swiss Insurance Association have further developed their existing self-regulations in response. These are to be published shortly.
According to the press release, the self-regulation requires the financial sector to define sustainable investment objectives and describe the sustainability approaches applied. In addition, implementation is to be audited externally.
Affected Swiss financial institutions must implement the self-regulation by January 1, 2027 at the latest.
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