Germany and Switzerland have concluded an agreement on the provision of cross-border banking services. The agreement is meant to strengthen economic relations between the two countries and will allow Swiss banks to benefit from simplified authorization procedures with the German Financial Supervisory Authority. Our German specialists in company registration can offer you all the necessary information about the requirements to set up a financial institution.
The negotiations on cross-border cooperation in the financial sector between Germany and Switzerland have begun in the summer of 2013 and were concluded last year when the countries have reached an agreement. The new Memorandum was signed at the beginning of July, 2015 due to certain implementation matters that needed attention. One of the most important provisions of the agreement is that Swiss banks will no longer be required to open subsidiaries in Germany in order to provide their services to German customers. The German Financial Supervisory Authority (BaFin) will enable the simplified authorization procedure for Swiss banks that comply with the anti-money laundering and consumer protection regulations. Swiss banks will also be subject to the German tax authorities’ annual audits.
For information about the audit requirements for companies, please contact our consultants in company registration in Germany.
The protocol will also simplify the access of other Swiss financial companies to the German market and will enhance cooperation between the two countries. One of the most important aspects is that all types of consumers, including German investors, will be able to set up bank accounts in Switzerland without going through a German branch of that bank. The new agreement also stipulates that Swiss banks will apply the regulations regarding the protection of German investors and consumers with respect to their business in Germany.
Germany has a strong legislation related to the protection of consumers and investors. The German law gives a consumer the right to revoke agreements, which also applies to loans. The same right is available for both private consumers and German companies. The Investment Act in Germany is another law protecting consumers, but it is applicable to agreements related to investment funds. Another law stipulating the rights of consumers in Germany is the Civil Code.
Our German agents will provide you with more information related to the consumer and investor protection rules.