On 19 June 2024, the Federal Council reviewed the financial sector’s new self-regulatory rules to fight greenwashing. These rules align with the Federal Council’s stance on preventing greenwashing in finance. The Council will consider more state regulations, considering the EU’s ongoing regulatory changes.

In December 2022, the Federal Council stated its position on stopping greenwashing, which is the misleading of clients about the sustainability of financial products and services. After discussions with various authorities and organizations, the Federal Department of Finance (FDF) informed the Federal Council in October 2023 that it would draft an ordinance by August 2024. However, if the financial sector presented effective self-regulatory rules, the FDF would not pursue regulatory work. The FDF has since started its regulatory process and consulted stakeholders.

The Federal Council has noted the new self-regulatory rules by the Swiss Bankers Association, the Asset Management Association Switzerland, and the Swiss Insurance Association. These rules, which will be published and come into force with transitional periods until 1 January 2027, include defining sustainable investment objectives, describing sustainability approaches, ensuring accountability, and independent audits. Some issues remain regarding EU law compliance and the sustainability targets’ reference framework.

Given the EU’s work on amending the Sustainable Finance Disclosure Regulation (SFDR) and the importance of the European market, the Federal Council will not introduce state regulation for now. The FDF will reassess the need for action by the end of 2027.

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