Misplaced Pages

#402597

37-671: The law was passed by the Federal Assembly of the Swiss Confederation on February 2, 1934, through the power of the constitution's 34th and 64th articles. It was put into force on March 1, 1935. The federal law is best known for Article 47, the specifications regarding banking secrecy. Article 47 makes it a federal crime to disclose the information or activity of clients banking domestically to foreign entities, third parties, or even Swiss authorities without either a) consent or b) an accepted criminal complaint . Many Articles within

74-514: A company for the purpose of making it more profitable, or better organized for its present needs. Other reasons for restructuring include a change of ownership or ownership structure, demerger , or a response to a crisis or major change in the business such as bankruptcy , repositioning , or buyout . Restructuring may also be described as corporate restructuring, debt restructuring and financial restructuring. Executives involved in restructuring often hire financial and legal advisors to assist in

111-559: A prompt resolution of a distressed situation. Corporate debt restructuring is the reorganization of companies' outstanding liabilities. It is generally a mechanism used by companies which are facing difficulties in repaying their debts. In the process of restructuring, the credit obligations are spread out over a longer period with smaller payments. This can better allow the company to meet its debt obligations. Also, as part of this process, some creditors may agree to exchange debt for some portion of equity. Working with companies in this way in

148-471: A timely and transparent manner may go a long way to ensure their viability, which is sometimes threatened by internal and external factors. The restructuring process attempts to resolve the difficulties faced by a corporate body and enable it to become viable again. Steps: In corporate restructuring, valuations are used as negotiating tools and more than third-party reviews designed for litigation avoidance. This distinction between negotiation and process

185-573: A variety of financial, legal, and economic regulations for any banking institution operating within Switzerland. The most notable Articles within the Federal Act are listed below: The Banking Law of 1934 has been amended with alternative statutes to expand and reduce the powers set forth in its original framing with: In addition to the Banking Law of 1934, Switzerland maintains a variety of statues in

222-420: A vote. During this phase, the only article not debated or meaningfully modified was Article 47–the banking secrecy standards. This article made it a federal crime to disclose the information or activity of clients banking domestically to foreign entities, third parties, or even Swiss authorities without either a) consent or b) an accepted criminal complaint . An additional provision of the law , Article 47(b),

259-464: Is a difference between financial restructuring and corporate finance . From the point of view of transfer pricing requirements, restructuring may entail the need to pay the so-called exit fee (exit charge). See Valuation (finance) § Valuation of a suffering company for discussion of the approaches taken. Historically, European banks handled non-investment grade lending and capital structures that were fairly straightforward. Nicknamed

296-602: Is done to: The United Federal Assembly is presided by the National Council 's presidency. The Federal Assembly also confirms the appointment of the Federal Data Protection and Information Commissioner (appointed by the Federal Council ). Parties can cooperate in parliamentary groups , also called political groups , allowing smaller parties access to rights as part of a caucus . At least five members from

333-422: Is met with social and political backlash with many politicians accusing foreign states of hypocrisy (e.g. other off-shore financial centers ) and attacking Swiss society . Of the few proposed roll backs, international agreements are significantly watered down, infrequently enforced, and occasionally overridden or caveated by Federal Supreme Court rulings. I know [Switzerland] goes through treaties and I know all

370-690: The Canton of Jura which had just been created. The Federal Assembly is made up of two chambers: Seats in the National Council are allocated to the cantons proportionally, based on population . In the Council of States , every canton has two seats (except for the former "half-cantons", which have one seat each). On occasions the two houses sit jointly as the "United Federal Assembly" ( German : Vereinigte Bundesversammlung , French : Assemblée fédérale, Chambres réunies , Italian : Assemblea federale plenaria , Romansh : Assamblea federala plenara ). This

407-769: The Federal Chancellor , the federal judges or (only in times of great national danger) a general . Prior to the establishment of the federal state in 1848, the only central organ of Switzerland was the Federal Diet ( Tagsatzung ). Following the Sonderbund War in 1847, the Tagsatzung became responsible for drawing up the Swiss Federal Constitution . The process of formulating legislative power resulted in clashing opinions, in particular in relation to

SECTION 10

#1732898012403

444-805: The Swiss Civil Code on banking secrecy that work in conjunction to Article 47: The Federal Constitution of the Swiss Confederation also guarantees certain rights related to banking secrecy: In December 2017, multiple parties within the Swiss parliament launched an standing initiative to ban the automatic exchange of data in Switzerland by embedding banking secrecy into the constitution. Switzerland only makes it look like its cooperating. It adopts [revision] after [revision] to their banking secrecy laws while [their] internal institutions – which few people outside of Switzerland fully understand – do everything in their power to maintain their country's role in keeping secure

481-412: The last election being held in 2023. The Federal Assembly possesses the federal government's legislative power , along with the separate constitutional right of citizen's initiative . For a law to pass, it must be passed by both houses. The two houses may come together as a United Federal Assembly in certain circumstances, such as to elect the Federal Council (the head of government and state ),

518-492: The "London Approach" in the UK, restructurings focused on avoiding debt write-offs rather than providing distressed companies with an appropriately sized balance sheet. This approach became impractical in the 1990s with private equity increasing demand for highly leveraged capital structures that created the market in high-yield and mezzanine debt . Increased volume of distressed debt drew in hedge funds and credit derivatives deepened

555-548: The 1800s that were regularly enforced to protect client information even before the passage of the law. Under these local statutes violations of banking secrecy were dealt with civil rather than criminal proceedings. During the early 1900s, an increasingly volatile international climate led multiple European countries to reform their banking industries and taxation programs. France, in particular, hiked their inheritance tax and began to increase income taxes in preparation for World War I in 1914. Switzerland sought to capitalize on

592-661: The 200-seat National Council and the 46-seat Council of States . It meets in Bern in the Federal Palace . The houses have identical powers. Members of both houses represent the cantons , but, whereas seats in the National Council are distributed in proportion to population, each canton has two seats in the Council of States, except the six ' half-cantons ', which have one seat each. Both are elected in full once every four years, with

629-575: The Constitution and the introduction of extended popular rights, the Federal Assembly became "the supreme authority of the Confederation subject to the rights of the people and the cantons". The organization of the two councils has changed little over time. When the National Council was created, the total number of seats was 111. This number was not fixed and evolved in proportion to the growth of

666-534: The Federal Act concern themselves with banking supervision for the sole purpose of enforcing Article 47. The passage of the law (along with key court precedents expanding its meaning) makes Switzerland home to the most strict and expansive banking secrecy laws in the world . Switzerland has had a long, kindred history with banking , more specifically with banking secrecy, since the early 1700s. While banking secrecy has been deeply engrained in Swiss society and civil law,

703-463: The Federal Act formally designated a federal criminal offense codifying banking secrecy into law. In the decades following the implementation of the law, Swiss banks were granted the right to use numbered bank accounts and protect client information through a variety of supplementary statutes. Despite significant and controversial global events straining the country's banking secrecy, its laws have been revised minimally and to little meaningful effect. Of

740-456: The Federal Assembly is "the supreme authority of the Confederation". The Tagsatzung accepted the draft constitution in June 1848. On September 12, following the vote of the various cantons, it noted that the Constitution had been approved and dissolved itself on September 22, as required by the transitional provisions of the approved text. During the month of October 1848, elections were organized in

777-403: The Swiss population until 1962 when the definitive number of seats was established at 200; the term of office, meanwhile, was increased from the original three years to four years in 1931. The mode of election, originally according to the majority system, transitioned to proportional representation in 1918. The Council of States, meanwhile, was not modified until 1979, by adding two new seats for

SECTION 20

#1732898012403

814-464: The agreement of both will be required to take a decision. The National Council , which represents the people, will comprise representatives from each canton with their distribution being proportional to the population of the cantons, while the Council of States , which represents the cantons, will be composed of the same number of representatives from each canton. According to the Constitution of 1848 ,

851-402: The cantons in order to elect the deputies. After a few skirmishes, particularly in the canton of Fribourg, the results were announced which confirmed the victory of the radicals, who won more than three-quarters of the seats in the National Council and 30 of the 44 seats in the Council of States. On, November 16 1848, Parliament elected the first Federal Council. In 1874, following the revision of

888-471: The contradictions between the European powers and, protected by the shield of our neutrality, our arm will be industry and finance.'" After news that the law was to be brought to a vote, Swiss bankers traveled to European countries to advertise the law's protection of client information. As the first World War commenced, global financial instability, economic volatility, and monetary crises positioned Switzerland at

925-464: The financial secrets of others. The Banking Act of 1934, and more generally the banking industry it covers , has been revised multiple times in response to domestic demand and international pressure. Measures to expand or otherwise improve banking secrecy in Switzerland is often met with high levels of public support, usually passing through legislative bodies and commissions with ease and little debate. International pressure to roll back banking secrecy

962-452: The forefront of the financial world. The country's neutrality , monetary stability , political stability, low tax rates , and a rumored federal banking secrecy statute attracted hundreds of millions of dollars into its banking industry. After the World War I concluded in 1918, multiple governments began requesting client information from Switzerland to little disclosure. In early 1934, there

999-409: The global taxation paradigm shift by formally codifying and redoubling their centuries long association with banking secrecy. Unable to compete with the financial centers of London , Paris , and Berlin , the Swiss government began drafting the law in the early late 1920s. According to Swiss historian Sébastian Guex, "This is what the Swiss bourgeoisie are thinking: 'That’s our future. We will play on

1036-436: The holes in all the treaties. Under Swiss law ... the defense is that prosecutors have to prove that any bank involved is violating the law. The key point is that Swiss law still requires going through hoops to get the names of people who are hiding their assets from our tax [authorities]. Federal Assembly (Switzerland) The Federal Assembly is the federal bicameral parliament of Switzerland . It comprises

1073-405: The market—trends outside the control of both the regulator and the leading commercial banks. A company that has been restructured effectively will theoretically be leaner, more efficient, better organized, and better focused on its core business with a revised strategic and financial plan. If the restructured company was a leverage acquisition, the parent company will likely resell it at a profit if

1110-478: The representation of the various cantons: the radicals , in the majority in the largest cantons , pushed for a system where representation was purely proportional to the population of each township; the small cantons, for their part, feared being marginalized. After long debates, a compromise was found by adopting the American model of bicameralism ; the parliament will be composed of two chambers with equal power, and

1147-573: The same Council are needed to form a group. Only informal groups exist in the Council of States . Members of the National Council are required to be in a formal group in order to be able to sit on a committee. Since March 2009, there have been six groups in the Federal Assembly. The latest group to form was the Conservative Democratic Party which split off the Swiss People's Party in 2008. The Christian Democrats/EPP/glp Group (CEg)

Federal Act on Banks and Savings Banks - Misplaced Pages Continue

1184-513: The three Christian parties formed the Christian-Evangelical Group (CE). Currently (for the legislative period of 2019–2023), the six parliamentary groups are composed as follows: After the 2015 federal election , the Federal Assembly was composed of 7 groups: Restructuring Restructuring or Reframing is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of

1221-469: The total seven amendments to the Federal Act , the last was passed on March 22, 2013. The Federal Act, alongside more generally Swiss culture and the banking industry, has been accused of facilitating systematic tax evasion, money laundering , and the underground economy . Banking secrecy and bank–client confidentiality had been a traditional and a civil offense in Switzerland since the 1770s . A handful of Cantonal -based statutes had existence since

1258-525: The transaction's details and negotiations. It may also be done by a newly-hired CEO specifically to make the difficult and controversial decisions, required to save or reposition the company. It generally involves financing debt, selling portions of the company to investors, and reorganizing or reducing operations. The basic nature of restructuring is a zero-sum game . Strategic restructuring reduces financial losses, simultaneously reducing tensions between creditors and equity holders, in order to facilitate

1295-462: Was a banking crisis in Switzerland that caused one (of the then eight) banks to go bankrupt while the others required major restructuring . After strikes from various political groups and special interests , the Federal Council was forced to formally present their drafted banking regulations. After four parliamentary debates and major revisions, the formal articles were drafted and submitted to

1332-439: Was drafted before its ratification to protect Jewish assets against Nazi forces during World War II . The Swiss Federal Assembly of the Swiss Confederation passed the federal law on February 2, 1934, and put it into force on March 1, 1935. The passage of the law made Switzerland home to the most strict and expansive banking secrecy laws in the world. The original framing of the Federal Act contains 56 articles that establish

1369-569: Was formed after the 2007 elections, out of the former Christian Democratic (C) and EPP (E) groups. The current FTP/Liberal group (RL) was formed in 2003 out of the former FDP (R) and Liberal (L) groups; since the 2009 fusion of the Free Democratic and Liberal Parties, RL is once again a single-party group. In 2011, the CEg was disbanded, the Green Liberals formed their own parliamentary group (GL) and

#402597