New Transparency Rules in Switzerland – Bearer Shares
New Transparency Rules in Switzerland – Bearer Shares
On 21st June 2019, the Swiss Federal Assembly adopted the Federal Act implementing the recommendations of the Global Forum on Transparency and Exchange of Information for Tax Purposes.
What does this mean?
With the exception of publicly limited companies and bearer shares issued in the form of intermediated securities, bearer shares are expected to no longer be in effect during 2020. However, the shareholder(s) would still remain anonymous on the online commercial registry entry, meaning the Swiss Aktiengesellschaft retains its advantage of anonymity of ownership.
Existing bearer shares which do not fall under this category would have to be converted into registered and name shares according to this new law
Bearer shares which still haven’t been converted 18 months after entry into force of the Global Forum Act would have to be converted automatically into registered shares.
Criminal sanctions could arise for those violating the obligation to disclose beneficial ownership in the future
After 1st January 2020, members of the board of directors or managing directors who deliberately fail to comply with this law or neglect to keep the share register or the register of beneficial owners up to date could be fined up to CHF 10’000.
Despite the change of the shares, the shareholders of Swiss AG companies could still keep the anonymity and do not need to be registered at Swiss trade registry.
If you are an F Trust client we will be in contact during 2020 when this becomes official to keep you and your company in-line with this ruling.
If you would like F Trust’s assistance in converting existing bearer shares in the future or have any questions in general about Swiss companies, please do not hesitate to get in touch at admin@ftrust.ch or call us at +41 44 266 10 60.