Federal Council enacts legislative amendment for more stock market protection
Published: Wednesday, Nov 29th 2023, 11:30
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On Wednesday, the Federal Council enacted the stock market protection measures that have been in force since 2019 into law at the beginning of 2024. By taking this step, Switzerland is avoiding the negative effects of the lack of EU stock exchange recognition.
In 2019, as is well known, the EU did not extend Switzerland's stock market equivalence in the dispute over the institutional framework agreement. In order to prevent negative consequences for Switzerland, the Federal Council subsequently introduced protective measures in an ordinance. This created the basis for securities firms from the EU to continue trading shares in Swiss companies on Swiss stock exchanges.
The ordinance has now been transposed into ordinary law, as announced by the Federal Council. Specifically, they have been incorporated into the Financial Infrastructure Act. The corresponding amendment to the law was approved by the Federal Assembly this year. The amendment will enter into force on January 1, 2024.
The measures are exceptional and temporary, despite the transfer to the Financial Infrastructure Act. They would initially be valid for five years. The Federal Council can also deactivate the measures vis-à-vis the EU before the deadline expires. In a communication dated February 2023, the Federal Council emphasized that it was still aiming for unlimited stock market equivalence.
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