Other important regulatory developments

Dormant assets

In Switzerland changes to the civil code, the code of obligations and the code of civil procedure are planned. As a result, financial intermediaries will be obligated to take appropriate measures to nurture and preserve contacts with clients. Dormant assets are to be reported to the competent court if no transactions have been effected with them for thirty years.

Market abuse law/Market good conduct rules

New market conduct rules were introduced in Switzerland on 1 May 2009. In Liechtenstein, the market abuse law has been in force since 1 February 2007. Both sets of provisions have the aim of monitoring market activity to uncover cases of market manipulation, exploitation of insider knowledge, or other violations of legal provisions.

The banks have been instructed to implement directives to prevent abuse and malpractice inside the company. Furthermore, trading for own account by employees is to be monitored in future so that market information cannot be exploited for personal advantage.