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22 March 2000
The new regulation focuses on the outsourcing of information technology (including the treatment of electronic data abroad), administration and accounting. It aims to protect client privacy while allowing the SFBC to supervise the activities of banks and securities dealers.
Banks and securities dealers no longer need to obtain SFBC approval prior to outsourcing any business activity, provided all conditions of Circular 99/2 are met. Outsourcing data abroad is only permissible if reciprocity is granted and if the service provider is effectively supervised. Proof of reciprocity, such as a legal opinion or confirmation from a foreign supervision authority, must be submitted to the bank's external auditors. Also, while clients must be informed of the outsourcing of their data, their written consent is not required.
The circular provides concessionary measures for outsourcing data under certain circumstances. Concessions take effect when:
Intra-group outsourcing requires two conditions to be met. First, service providers must submit the delegated activities to an SFBC-authorized audit company. Second, service providers not subject to SFBC supervision must agree in writing to provide all information and documents as required by the SFBC, the Swiss entity and its internal and external auditors.
For further information on this topic please contact Thomas Keller or Guy-Philippe Rubeli at Pestalozzi Gmuer Patry's Geneva office by telephone(+41 22 80 94 500) or by fax (+41 22 80 94 501) or by e-mail (firstname.lastname@example.org or email@example.com). Alternatively, contact Robert Furter at Pestalozzi Gmuer Patry's Zurich office by telephone (+41 1 217 91 11) or by fax (+41 1 217 92 17) or by e-mail (firstname.lastname@example.org).
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