Switzerland signs declarations on introduction of AEOI with more countries and initiates consultation

Bern, 20.01.2016 - Switzerland has signed joint declarations on the introduction of the automatic exchange of information (AEOI) in tax matters on a reciprocal basis with the British crown dependencies of Jersey, Guernsey and the Isle of Man, as well as with Iceland and Norway. Switzerland and these countries intend to start collecting data in accordance with the global AEOI standard in 2017 and to start transmitting data in 2018, after the necessary legal basis has been created in the various countries.

The joint declarations signed by Switzerland and these countries meet the criteria set by the Federal Council in the negotiation mandates of 8 October 2014. Aside from the EU and the United States, the negotiations initially concern countries with which there are close economic ties and which provide their taxpayers with sufficient scope for regularisation. Switzerland has already signed a joint declaration of this nature with Australia. In addition, an agreement on the introduction of the AEOI has already been concluded with the EU.

From a legal viewpoint, the AEOI will be implemented based on the Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information (MCAA). The MCAA is based on the international standard for the exchange of information developed by the OECD. Up to now, almost 100 states have undertaken to adopt the standard and to start exchanging information on this basis in 2017 or 2018.

The declarations signed by Switzerland and the countries specify that each jurisdiction is satisfied with the confidentiality rules provided for in the other jurisdiction with regard to tax. Furthermore, these countries have prepared scope for regularisation for their taxpayers. Finally, Iceland and Norway have reiterated their intention to start talks on market access for Swiss financial service providers. The possibility of providing financial services in the British crown dependencies already exists to a large extent.

The Federal Council authorised the Federal Department of Finance (FDF) to initiate a consultation on introducing the AEOI with the other countries following the signing of the declarations with the various countries. Thereafter, the corresponding federal decrees will be submitted to Parliament for approval.

Cooperation agreement concluded between FINMA and the Jersey Financial Services Commission

The Swiss Financial Market Supervisory Authority FINMA has entered into a cooperation agreement with the Jersey Financial Services Commission (JFSC), the supervisory authority of Jersey. The conclusion of such an agreement on cooperation and exchange of information between FINMA and the competent foreign supervisory authorities is a prerequisite for authorising branches of foreign asset managers of collective investment schemes in Switzerland.

The agreement aims at ensuring efficient cooperation between the supervisory authorities and effective supervision of the institution or the branch in their respective countries. While strengthening cross-border investor protection, the exchange of information between supervisory authorities facilitates the authorisation of institutions or branches and ensures their supervision under the laws and regulations applicable in their respective countries.