The government has decided to put a hold on new regulations related to greenwashing and data exchange in the financial sector, despite pressure from industry. The Federal Council is closely monitoring Brussels for any potential developments that may impact Switzerland.
The financial sector is one of the many areas where state regulation is increasing due to factors such as complexity, foreign standard adaptation, and political solutions to social problems. However, the government in Bern made an unusual decision not to impose regulations on two crucial areas: greenwashing and data exchange.
Greenwashing refers to the practice of falsely marketing products as sustainable or climate-friendly. In this area, the financial sector has made progress in self-regulation through revised guidelines that promote transparency and accuracy in labeling products as sustainable. While there are still areas that need improvement, the government commended these efforts.
Data exchange refers specifically to customer data ownership in the financial sector. The Federal Council had pushed for openness in this area to promote innovation by encouraging financial institutions to share customer data with other providers at their customers’ request. Although there is no legal obligation for this in Switzerland, many institutions have voluntarily signed on to a letter of intent to work towards multi-bank offerings.
Both greenwashing and data exchange issues will continue to be monitored by the government, with a new assessment planned by the end of 2027. Additionally, the EU’s regulations on these matters will also be closely watched for potential impacts on Switzerland. This decision reflects a balance between industry self-regulation and government oversight in these critical areas.
In summary, while state regulation is increasing across various aspects of life due to factors such as complexity and foreign standard adaptation, the Swiss government has chosen not to impose regulations on greenwashing and data exchange in the financial sector for now despite industry pressure. Both issues will continue to be monitored with a new assessment planned by 2027 while keeping an eye on EU regulations for potential impacts on Switzerland’s economy.
