Newsletter 118 from February 2, 2010 Protection of depositors in associations, foundations and cooperatives

Newsletter 118 - Protection of depositors in associations, foundations and cooperatives - FINMA has revised its Circular 2008/3 "Public deposits with non-banks" in line with the amendment to Art. 3a lit. d of the Swiss Banking Ordinance (BO). Cooperatives, associations and foundations may now take deposits only where these are used for the collective purpose of the organisation. A minimum term of six months is now also laid down, in order to make the distinction versus banking activity clearer. Affected organisations must pay back within two years of entry into force all deposits that are now prohibited (Art. 62b BO).