On March 8, 2019, the Swiss Federal Council instructed the Federal Department of Finance to initiate the consultation process on proposed amendments to the Banking Act.
The proposed amendments aim at increasing the effectiveness, and legal basis, of certain bank resolution measures and related topics.
Interested parties can comment on the draft proposal until June 14, 2019.
Restructuring procedure for banks
After publishing a very comprehensive report on distributed ledger technology (DLT) and blockchain in last December, the Federal Council initiated during its meeting on 22 March 2019 the next step by a public consultation on the adaptation of specific federal law provisions to developments in DLT and blockchain. This further underlines the emphasis of the Federal Council on creating the best possible framework to allow Switzerland to establish itself as a leading, innovative and sustainable location for fintech and DLT companies.
The attachment of a debtor's assets is a very convenient tool for securing the recovery of an outstanding claim. Besides conventional assets, such as bank accounts or real estate, the creditor may also consider attaching more exotic items owned by the debtor: luxury cars, artworks or, why not, a private jet. We set out below the key requirements and certain practical aspects to consider when seeking the attachment of an aircraft located in Switzerland.
The requirements for attaching an aircraft: two different routes
Insolvency and international cooperation in insolvency matters have undergone major and constant redevelopment, both in the European Union and internationally, as required by the UN Commission on International Trade Law. However, aside from its banking sector, Switzerland has not fully participated in this modernisation process.
In decision 5A_375/2017, which is slated for official publication in the court reporter, the Swiss Supreme Court ruled for the first time that the statute of limitation for a claim evidenced by a certificate of shortfall is governed by the Swiss Debt Enforcement and Bankruptcy Law (DEBA), irrespective of whether foreign or Swiss substantive law is applicable to the original claim (i.e. the claim resulting from two arbitral awards rendered in Singapore) . This may allow the award creditor enforcing an arbitral award in Switzerland to benefit from a much longer limitation period.
The Swiss Debt Enforcement and Bankruptcy Act (DEBA) allows the initiation of debt enforcement proceedings before a court becomes involved. A creditor can request the competent debt enforcement office (normally at the domicile of the debtor) to issue a payment order to the debtor. The office serves that payment order without verifying the existence and enforceability of the purported claim; however, the debtor may declare its objection, within 10 days, to the debt enforcement office.
Swiss Civil Procedure Law in a Nutshell (Volume 9 of 12)
This blog series provides litigators and corporate counsel from other jurisdictions with a practical understanding of the mechanics, advantages, and limits of litigation before State Courts in Switzerland.
No Class Actions
Mit einer Änderung des Schuldbetreibungs- und Konkursgesetzes (SchKG) per 1. Januar 2019 sollen Personen, die grundlos oder missbräuchlich betrieben wurden, besser geschützt werden. Konkret wird ein neues und einfaches Verfahren eingeführt, mit welchem man sich gegen ungerechtfertigte Eintragungen im Betreibungsregister wehren kann. Folgender Beitrag vermittelt einen allgemeinen Überblick über die wichtigsten Rechtsbehelfe, die einem zu Unrecht Betriebenen ab dem 1. Januar 2019 zur Verfügung stehen.
Betreibungsverfahren in der Schweiz
On 1 January 2019, certain changes to Swiss debt enforcement and bankruptcy law will enter into force. The revised law aims to offer better protection for debtors against unjustified debt enforcement steps and to facilitate the recognition of foreign bankruptcy proceedings.
Restriction on disclosure in debt enforcement register