The Elephant in the Chalet
Switzerland is currently reforming the legislative framework of its financial industry. The legislative debate is focused on gaining market access into the European Union through equivalence, understood as unilateral transposition of EU financial legislation by Switzerland. It is very much an “us against them” rhetoric which is erroneous on several levels: First of all, the discussion focuses on the wrong objective. The ultimate goal of financial regulation should be a robust and sound legal framework which enshrines international standards, protects investors and fosters the industry. Secondly, it misses the elephant in the chalet: The relevant international standards have already found their way into the Swiss financial industry. Equivalence with the European Union must be taken into consideration, but cannot be the only goal.
