In this post we will explain Setting up a Swiss Sandbox, and how it is possible to test a fintech based financial business without having to apply for any authorization (such as for example bank license) or without being supervised (under SRO/Finma). Do not hesitate to contact us at connect@swissfintechpro.com for more information on this matter.
CLICK HERE for a Sandbox for sale
Switzerland is prioritizing the Fintech economy, aiming to become a leading hub. The government and parliament are creating a legal framework that supports Fintech investments. This post introduces the Swiss Fintech Sandbox, a breakthrough initiative allowing fintech businesses to test their models without the usual regulatory burdens.
The Swiss Government’s strategy includes three key elements:
Historically, legal challenges hindered Fintech Sandbox development in Switzerland. To develop financial fintech models, startups often need to hold client deposits, which traditionally required a banking license. The Swiss Parliament has addressed this by amending the Swiss Ordinance on Banks and Saving Banks (BO), specifically adding Article 6 paragraph 2. This allows entities to hold deposits under CHF 1 million without acting as a professional bank, provided they don’t invest or remunerate these deposits and inform depositors of their non-regulated status.
The Sandbox regime fosters innovation by allowing fintech service providers to test models without a license for deposit-taking up to CHF 1 million. These deposits must not be invested or bear interest.
A Fintech Sandbox can be set up as a GMBH or an AG. A GMBH requires 20,000 CHF in capital, while an AG needs 100,000 CHF, with 50,000 CHF subscribed. For details on the differences, refer to our “Memo Comparing AG and GMBH.”
If a Sandbox’s deposits exceed CHF 1 million, the entity must inform FINMA within 10 days and start the authorization process. Depending on the business model, this could involve SRO/FINMA supervision, a bank license, or the upcoming light bank license, which allows up to CHF 100 million in deposits under certain conditions.
This overview aims to clarify the Swiss legal framework for creating a Fintech Financial Sandbox under the exempted regulatory regime. We welcome feedback to enhance our explanation. While informative, professional guidance is still recommended for starting a business in Switzerland. Contact us at connect@swissfintechpro.com for further insights or assistance.
Do not hesitate to contact me if you have questions related to Setting up a Swiss Sandbox at connect@swissfintechpro.com
