RESTRICTED
WORLD TRADE S/WPPS/W/7/Add.18
2October 1996
ORGANIZATION
(96-3965)
Working Party onProfessional Services Original: English
COMMUNICATION FROM SWITZERLAND
Response tothequestionnaire ontheaccountancy sector
Thefollowing communication iscirculated attherequest ofSwitzerland.
________
I. GENERAL
1. What aretheprofessional titlesofaccountants inyourcountry? Arethese professional titles
protected? Please specify how.
- Swiss Certified Accountant
(expert-comptable diplômé, Dipl. Bücherexperte)
- Swiss Certified TaxConsultant
(expert fiscal diplômé, Dipl. Steuerexperte)
- Swiss Certified Fiduciary
(expert fiduciaire diplômé, Dipl. Treuhandexperte)
- Accountant/Controller withSwiss Federal Diploma
(contrôleur degestion/comptable diplômé, Dipl. Buchhalter/Controller)
- RealEstate Fiduciary withSwiss Federal Diploma
(régisseur etcourtier enimmeubles diplômé, Dipl. Immobilien-Treuhänder)
- Accountant withSwiss Federal Attestation
(comptable avecbrevet fédéral, Buchhalter miteidg. Fachausweis)
- Fiduciary withSwiss Federal Attestation
(agent fiduciaire avecbrevet fédéral, Treuhänder miteidg. Fachausweis)
- RealEstate Administrator withSwiss Federal Attestation
(gérantd’immeublesavecbrevetfédéral,Immobilien-Verwaltermiteidg.Fachausweis)
Alleighttitlesareprotected bylaw(Art.72,Federal lawonvocational training andeducation1,
RS/SR 412.10).
1Loifédérale surlaformation professionnelle (LFPr), Bundesgesetz überdieBerufsbildung (BBG).S/WPPS/W/7/Add.18
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2. Howistheaccountancy sector regulated inyourcountry: bylaw,professional self-regulation,
acombination ofboth?
Byacombination oflawandprofessional self-regulation.
3. Arethere anyprovisions toprotect company names, whether national orforeign, inyour
country?
Ifregistered withthegovernment registry office, company names areprotected under theSwiss
Federal Code ofObligation (Art. 640/641/935, CO2,RS/SR 220).
4. What aretheprofessional bodies inyourcountry? Aretheyrecognised bylawasaregulatory
ordisciplinary bodyfortheaccountancy profession inyourcountry, orarethese functions
fulfilled byother institutions (please specify)?
Theprofessional bodies inSwitzerland are:
- Swiss Institute ofCertified Accountants andTaxConsultants (Chambre fiduciaire,
Treuhand-Kammer THK);
- Swiss certified Accountants/Controller Association (Association suisse descomptables
controleurs degestion SWISCO, Verband derdipl.Buchhalter/Controller);
- Swiss Association ofAccountants andTrustees (Union suisse desfiduciaires USF,
Schweizerischer Treuhänderverband STV);
- Swiss Association ofRealEstate Fiduciaries (Union suisse desfiduciaires immobilières,
Schweizerischer Verband derImmobilien-Treuhänder SVIT).
These bodies arenotrecognized bylawasregulatory ordisciplinary bodies.
5. Howmany members dothese professional bodies have? What istheestimated proportion
ofthose:
- inpublic practice
- inindustry orcommerce
- inthepublic sector
- ineducation
- unoccupied (retired, etc.)
- other
TheSwiss Institute ofCertified Accountants andTaxConsultants (THK) has3’700individual
members. TheSwiss certified Accountant/Controller Association has3’400individual members. The
Swiss Association ofAccountants andTrustees has1000individual members. TheSwiss Association
ofRealEstate Agents has1’800members.
Membership intheTHK oranyother bodyisnotimposed bylaw.Defacto, thevastmajority
ofsuppliers ofauditing services aremembers oftheTHK.
2CO: Code ofobligations, droits desobligations (RS/SR 220).S/WPPS/W/7/Add.18
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In1996, of3’700THK members, 95%wereactive inpublic practice. Theremaining 5%
wereactiveinindustryorcommerce,inthepublicsector,ineducation,wereunoccupiedorwereengaged
inmiscellaneous activities.
6. What isthescope ofactivities regularly practised byaccountants inyourcountry?
- statutory audit Yes
- audit ofmergers Yes
- audit ofcontributions inkind Yes
- public sector audit Yes
- other audits Yes
- accounting Yes
- insolvency practice Yes,however, rarely provided byaccountants.
- taxadvice Yes
- taxrepresentation Yes
- investment advice Self-regulation rules oftheTHK prohibit
investment advice foritsmembers.
- consulting Yes
- expert witness inaccounting Yes,however, rarely provided byaccountants.
- other Yes
7. Which ofthese activities areregulated inyourcountry?
Statutory audit Auditing isreserved toqualified auditors (Art. 727a, CO). Statutory
audits ofconsolidated financial statements (Art. 731a, CO), and
statutory audits ofcorporations (Art. 727b, CO):
- which havebonds outstanding, or
- whose shares arelisted, or
- forwhich twoofthefollowing thresholds areexceeded during
twoconsecutive business years:
-- Balance-sheet totalof20mio.CHF;
-- Revenues of40mio.CHF;
-- Average of200employees p.a..
havetobeprovided byparticularly qualified auditors. (See
answer toquestion 9.)
Audit ofmergers Notregulated
Audit ofcontributions inkind Inthecaseofcontributions inkind, aqualified auditor has
tocertify thatthereport oftheincorporators iscomplete and
accurate (Art. 635a, CO). (Seeanswer toquestion 9.)
Public sector audit Notregulated
Other audits Regulated. Ifacorporation intends toreduce thecapital stock,
aparticularly qualified auditor hastoascertain thattheclaims
ofcreditors arefully covered (Art. 732, CO). Specific
regulationsapplyfortheauditofbanks,
investment funds/Fund Managements andpension funds3
3Seeanswer toquestions 19and21.S/WPPS/W/7/Add.18
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Accounting Notregulated
Insolvency practice Notregulated4
Taxadvice Notregulated
Taxrepresentation Notregulated
Investment advice Notregulated5
Consulting Notregulated
Expert witness inaccounting Notregulated6
Other (foundation offirm) Thereport oftheincorporators hastobecertified bya
qualified auditor (Art. 635a, CO).
8. Which oftheseactivities arereserved bylawtoaccountants, shared byaccountants withother
professions (please specify), orevenforbidden toaccountants inyourcountry, e.g.byfull
prohibition orbynotallowing cumulation ofcertain activities which areconsidered
incompatible ormutually exclusive?
Statutory audit Reserved bylawtoqualified orincertain cases toparticularly
qualified auditors7(Art. 727b, CO).
Audit ofmergers Notreserved bylawtoaccountants. However, accountants
areallowed todothisactivity.
Audit ofcontributions inkind Reserved bylawtoqualified auditors8(Art. 635,CO).
Public sector audit Notreserved bylawtoaccountants. However, accountants
areallowed todothisactivity.
4Rarely provided byaccountants inSwitzerland.
5Notprovided byaccountants inSwitzerland whoaremembers ofTHK, seeanswer toquestion 6.
6Rarely provided byaccountants inSwitzerland.
7Forregulation seeanswer toquestion 7,forqualification requirements seeanswer toquestion 9.
8Forregulation seeanswer toquestion 7,forqualification requirements seeanswer toquestion 9.S/WPPS/W/7/Add.18
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Other audits Audit ofreduction ofcapital stock reserved toparticularly
qualified auditors9(Art.732,CO). Specific regulation applies
toaudits ofbanks andinvestment funds/Fund Managements10
(Art. 20,BL11resp. Art.52,Federal LawonInvestment
Funds12).Audit ofpension funds reserved tomembers ofthe
THK (Art. 33,Application order onoldage,survivors and
invalidity pension funds13).
Accounting Notreserved bylawtoaccountants. However, accountants
areallowed todothisactivity14
Insolvency practice Notreserved bylawtoaccountants. However, accountants
areallowed todothisactivity.15
Taxadvice Notreserved bylawtoaccountants. However, accountants
areallowed todothisactivity.
Taxrepresentation Notreserved bylawtoaccountants. However, accountants
areallowed todothisactivity.
Investment advice Notreserved bylawtoaccountants. Self-regulation rulesof
professionprohibitinvestmentadviceformembersoftheTHK.
Consulting Notreserved bylawtoaccountants. However, accountants
areallowed todothisactivity.
Expert witness inaccounting Notreserved bylawtoaccountants. However, accountants
areallowed todothisactivity.16
Other Certification ofthereport oftheincorporators isreserved by
lawtoqualified auditors17(Art. 727b, CO).
9Forregulation seeanswer toquestion 7,forqualification requirements seeanswer toquestion 9.
10Forqualificationrequirementsseeanswertoquestion9,forlicensingrequirementsseeanswertoquestion21.
11Swiss Federal LawonBanks andSavings Banks (Bank Law, BL),Loifédéral surlesbanques etlescaisses
d’épargne (LB), Bundesgesetz überdieBanken undSparkassen (BankG).
12Loifédérale surlesfonds deplacement (LFP), Bundesgesetz über dieAnlagefonds (AFG).
13Ordonnance surlaprévoyance professionnelle vieillesse, survivants etinvalidité (OPP2), Verordnung über
dieberufliche Alters-, Hinterlassenen- undInvalidenvorsorge (BVV2).
14Ethical guidelines oftheTHK enforce their members toensure independency.
15Rarely provided byaccountants inSwitzerland.
16Rarely provided byaccountants inSwitzerland.
17Forregulation seeanswer toquestion 7,forqualification requirements seeanswer toquestion 9.S/WPPS/W/7/Add.18
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II. QUALIFICATION REQUIREMENTS
9. What arethequalification requirements forthese activities inyour country interms of
university/higher education degree, practice andprofessional exam? Specify thenumber
ofyears required foreach element, andthedifferences according totheactivities (audit,
insolvency, tax,etc.)covered bythequalification.
Thetitleslisted inanswer toquestion 1interaliaqualify fora“qualified auditor ”18.Foreign
equivalent titles/qualifications alsoqualify.
Tobecome aSwiss Certified Accountant, aSwiss Certified TaxConsultant oraSwiss Certified
Fiduciary anexam hastobepassed. Admission toexamination: Higher degree ineconomics or
accountancy plus3years professional practice orcommercial apprenticeship/commercial school/high
school plus4years general practice plus3years professional practice.
Tobecome anAccountant/Controller withSwiss Federal Diploma anexam hastobepassed.
Admissiontoexamination:Higherdegreeineconomicsoraccountancyplus4yearspracticeinaccounting
andcontrolling oraccountant/fiduciary withSwiss federal attestation plus3years practice inaccounting
andcontrolling.
Thefollowing categories qualify fora“particularly qualified auditor ”19:
(a) Swiss Certified Accountants;
(b) Swiss Certified Fiduciaries, Swiss Certified TaxConsultants andAccountants/
Controllers withSwiss Federal Diploma provided theyhave aminimum practical
experience of5years;
(c) Graduates ofauniversity withadegree ineconomics orlaworgraduates ofarecognised
schoolofeconomicsandbusinessadministration(SEBA),providedtheyhaveaminimum
practical experience of12years;
(d) Persons withforeign qualification equivalent totherequirements listed in(a)to(c),
provided theyhaveappropriate experience andknowledge ofSwiss lawonauditing
ofSwiss corporations;
(e) Persons, whoareallowed tocomplete statutory auditofannual accounts ofcompanies
andfirms according tothe8thEU-Directive oftheCouncil, provided theyhave
appropriate knowledge ofSwiss lawonauditing ofSwiss corporations.
10. Arethere anypre-conditions tomeet tostarttheprofessional education: minimum age,
particular diploma ortitle,prior education, registration withaprofessional body, payment
ofafee,other (please specify)?
Tostarttheprofessional education tobecome aSwiss Certified Accountant (oraSwiss Certified
TaxConsultant oraSwiss Certified Fiduciary), nopre-condition regarding age,particular diploma,
title,registration withaprofessional body, orpayment ofafeeisimposed. However, theapplicant
must havecompleted -asprior education -acommercial apprenticeship oracommercial school or
18Seeanswer toquestion 7.
19Seeanswer toquestion 7.S/WPPS/W/7/Add.18
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aschool giving access touniversity. Additionally theapplicant musthaveatleast4years ofpractical
commercial experience inSwitzerland (fiduciary, tax,auditing, management consultancy, computer
science, banking) ofwhich 3years inthefieldofinternal orexternal auditing (resp. taxconsultancy,
fiduciary).
Tobecome anAccountant/Controller withSwiss Federal Diploma, nopre-condition regarding
age,title,registration withaprofessional body, orpayment ofafeeisimposed. However, theapplicant
musthaveadiploma either asAccountant/Fiduciary withSwiss Federal Attestation, orofarecognised
school ofeconomics andbusiness administration (SEBA)/university. Additionally theapplicant must
haveatleast3resp. 4years ofpractical experience inaccountancy.
11. What arethesubjects tobecovered bytheeducation: accounting, audit, tax,general law,
economics, ethics, information technology, other (please specify)?
Theexamination forbecoming aSwiss Certified Accountant covers thefollowing topics:
(a) auditing
(b) taxandlaw
(c) business management, audit system, organization, computer science andeconomics
(d) aswellasoneofthefollowing topics ofspecialization:
- external auditing;
- internal auditing;
- computer science auditing;
- banking auditing.
III. TECHNICAL STANDARDS AND ETHICS
12. Inrelation towhich activities donational standards exist(audit, accounting, insolvency,
other)? Please specify theirmain policy objectives.
Intheauditing sector, thefollowing auditing standards (AS)havebeenissued bytheTHK
(state of1996):
- AS0)Bases andobjectives oftheauditing standards;
- AS1)Scope andextent oftheaudit;
- AS2)Quality control;
- AS3)Working papers;
- AS4)Useofthework ofother auditors;
- AS5)Confirmation ofthebalance oftrade debtors;
- AS6)Presence oftheauditor atthestocktaking;
- AS7)Representation letters;
- AS8)Events afterthebalance sheet date;
- AS9)Illegal actsandstatutory audit;
- AS10)Collaboration between theinternal auditing andtheexternal auditor;
- AS11)Judgement oftherisksataudit oftheannual accounts;
- AS12)Going concern;
- AS13)Internal control andstatutory audit.S/WPPS/W/7/Add.18
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Inthesector ofaccounting andreporting, thefollowing Swiss Accounting andReporting
Recommendations20(ARR) have been issued bytheFoundation forAccounting andReporting
Recommendation21(state of1996).
Issued by1996 are:
- ARR 0) Objectives, Subjects andProcedures oftheAccounting andReporting
Recommendations
- ARR 1) Components ofIndividual Company Accounts andConsolidated
Financial Statements
- ARR 2) Consolidated Financial Statements
- ARR 3) Generally Accepted Accounting Principles
- ARR 4) Thetranslation offinancial statements expressed inforeign currencies
forconsolidation purposes
- ARR 5) Valuation Directives forConsolidated Financial Statements
- ARR 6) Funds Flow Statement
- ARR 7) Presentation andFormat oftheConsolidated Balance Sheet andIncome
Statement
- ARR 8) Notes totheConsolidated Financial Statements
- ARR 9) Intangible Assets
- ARR 11) Taxes intheconsolidated financial statements
- ARR 12) Interim reporting
- ARR 14) Consolidated account ofinsurance business-enterprises.
13. Which bodyorinstitution develops thesestandards andmonitors theirimplementation? What
aretheconsequences ofabreach ofthestandards (fortheprofessional, forclients, etc.)?
Theauditing standards (AS)areissued bytheTHK. Contraventions ofthese principles may
bejudged andsanctioned bytheTHK.
TheSwiss Accounting andReporting Recommendations (ARR) areissued bytheFoundation
forAccountingandReportingRecommendations.ARRhavetobeappliedbyquotedfirmsinSwitzerland
(Art. 66f.,Listing Rules oftheSwiss exchange). Non-application ofARR willleadtoawithdrawal
ofthequotation ofthefirm.
20Recommandations relatives àlaprésentation descomptes (RPC), Fachempfehlungen zurRechnungslegung
(FER).
21Fondation pour lesrecommandations relatives àlaprésentation descomptes, Fachkommission für
Empfehlungen zurRechnungslegung.S/WPPS/W/7/Add.18
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14. Aretheinternational standards developed byIFAC (International Education Standards and
Guidelines, International Standards onAuditing) andIASC (International Accounting
Standards) recognised orusedinyourcountry? Ifyes,please explain how. Ifno,please
explain why.
Many corporations withlisted shares inSwitzerland apply International Accounting Standards
(IAS).
Thestandards issued bytheTHK (asamember ofIFAC) follow inallmaterial respects the
standards ofIFAC.
15. Inrelation towhich activities does aparticular ethical code exist (audit, accounting,
insolvency, other)? Please specify itsmain policy objectives.
Theethical codeoftheTHK includes thetopics ofexternal auditing, accounting andreporting,
auditofannual accounts, taxconsultancy, fiduciary. Covered areinparticular: bookkeeping forthird
parties, management, fiduciary functions, aswellasthegeneral management consulting activities related
totheabove mentioned topics inthefieldoffinance andaccountancy, financial management, right
ofsuccessions, management ofanenterprise, organization, computer science, valuation ofenterprises,
expert 'sreport, etc.
16. Which bodyorinstitution develops thiscodeandmonitors itsimplementation? What are
theconsequences incaseofbreach oftheethical codebyaprofessional orafirm?
TheTHKdevelopsandmonitorstheimplementationoftheethicalcodeandtherecommandations.
Abreach oftheethical codeofrecommandations maybejudged bytheTHK (sanctions: warning,
reprimand, fineuptoCHF 100’000.-, suspension ofmembership ofthebody).
17. Arethere restrictions onmarketing, solicitation, advertising?
Marketing, solicitation, advertising ispermitted. However, THK-members aresubject tonon-
discriminatory advertising guidelines setbyTHK.
18. Arethere restrictions onfee-setting (minimum/maximum levels imposed, indicative scale,
etc.)?
Feeguidelines ofTHK apply tomembers ofTHK. ForAuditing ofbanks maximum feesare
fixed bythesupervising authority (Swiss Banking Commission22).
22Commission fédérale desbanques, Eidgenössische Bankenkommission (EBK).S/WPPS/W/7/Add.18
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IV. LICENSING REQUIREMENTS AND PROCEDURES
19. Apart fromthequalification requirements, whatarethelicensing requirements forindividuals
inyourcountry?
Noaccreditation/licensing requirement inSwitzerland. However, forauditing ofpension funds
individuals havetobemember oftheTHK23andstatutory audits24havetobeprovided byqualified
orincertain cases byparticularly qualified auditors25.
20. Arethere anyconditions imposed tobeeligible formembership oftherelevant professional
body(ies)? Please specify.
I Natural persons
Professionals thatfulfiltheconditions tobecome aparticularly qualified auditor26are
eligible formembership oftheTHK; however, foreign certificate holders additionally
havetohave3-years ofspecialized practical experience inSwitzerland andmusthave
residency inSwitzerland ormust work mainly inSwitzerland.
II. Firms
Thefollowing requirements havetobemettobecome amember ofTHK:
- minimum capital CHF 100’000.-
- number ofpartners Asufficient number ofresponsible certified
accountants mustbeguaranteed (onecertified
accountant should notberesponsible ofmore
than4collaborators inthesector ofauditing).
- professional indemnity Personal liability insurance withaminimum
insurance coverage amount ofCHF 500’000.- .
- withreference to Themajority ofvoting rights mustbeheldby
voting rights licensed professionals (inaccordance withthe
guidelines ofindependence).
- withreference tomanagement/ Management must beguaranteed bya
administration ofthefirm certified accountant.
23Forregulation seeanswer toquestion 8.Forconditions imposed, seeanswer toquestion 20.
24Asdefined inanswer toquestion 7.
25Asdefined inanswer toquestion 9.
26Asdefined inanswer toquestion 9.S/WPPS/W/7/Add.18
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- other (please specify) - Themajority ofboard ofmanagers
must beSwiss nationals.
- The headquarters must bein
Switzerland.
- Firms engaging inauditing must
certify thattheir revenue ofany
audited enterprise orgroup of
enterprises withcentral management
doesnotexceed 10%oftheirtotal
revenue.
21. Arethere specific licensing requirements forprofessional firms?
Nolicensingrequirement/procedureinSwitzerland27,exceptforauditingofbanksandinvestments
funds/Fund Managements. Theconditions forauditing ofbanks setbythesupervising authority (Swiss
Banking Commission28)are(Art.20,Art.23quinquies, Federal Banking LawBL29,RS/SR 952.0 and
Art.35to38,BLOrdinance30,RS/SR 952.02):
- minimum capital CHF 1’000’000.-
- number ofpartners Ifthefirmtakestheformofalimited liability
company(“GmbH”),itmustconsistofatleast
fourpartners.
- registration withtheministry Registration withthesupervising authority
oranyother institution required.
- professional indemnity insurance Adequate professional liability insurance is
required.
- withreference tonatural persons Theauditors incharge must enjoy agood
carrying outaccountancy activities reputation andprovide evidence ofathorough
onbehalf ofthefirm knowledge ofthebanking business andbank
auditing bymeans ofaFederal diploma asa
certified accountant, anequivalent foreign
diploma orbyother means.
- withreference tomanagement/ Managementmustenjoygoodreputation,with
27Seeanswer toquestion 19.
28Commission fédérale desbanques, Eidgenössische Bankenkommission (EBK).
29Swiss Federal LawonBanks andSavings Banks (Banking Law, BL), Loifédérale surlesbanques etles
caisses d’épargne (LB), Bundesgesetz über dieBanken undSparkassen (Bankengesetz, BankG).
30Implementing Ordonnance totheFederal Law Concerning Banks andSavings Banks (BLOrdinance),
Ordonnance surlesbanques etlescaisses d’épargne (Ordonnance surlesbanques, OB), Verordnung überdie
Banken undSparkassen (Bankenverordung, BankV).S/WPPS/W/7/Add.18
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administration ofthefirm themajority oftheboard ofmanagers having
athorough knowledge ofauditing, banking,
finance orlaw.
- other (please specify) - Firms engaging inauditing ofbanks
must prove thatthey willreceive
auditingassignmentsfromatleastfive
banks, which together have total
assets ofatleastCHF 300million31.
Individuals cannot belicensed forthe
audit ofbanks.
- Theorganization oftheauditing firm
must ensure professional and
continuous performance oftheaudit
engagements; theorganization must
bespecified initsarticles of
incorporation,by-lawsorregulations.
- Theauditing firmmayonlyprovide
services tothird parties andmust
abstain fromconducting business for
itsownaccount andatitsownrisk,
unless thisisabsolutely necessary for
theproper operation oftheauditing
firm (e.g. investment ofcapital
resources).
Similar, butlessdetailed licensing requirements existforauditing ofinvestment funds/Fund
Managements (Art. 52/57, Federal LawonInvestment Funds32,RS/SR 951.31 andArt.79to82,
Ordinance oftheFederal Council33,RS/SR 951.311). Companies which arelicensed forauditing of
banks donotneedaseparate license fortheaudit ofinvestment funds/Fund Managements.
Forauditing ofpension funds nolicensing requirement. However, firms havetobemember
oftheTHK34(Art. 33,Application order onoldage,survivors andinvalidity pension funds35,RS/SR
831.441.1).
31TheBanking Commission setsareasonable time limit forthefulfilment ofthiscondition.
32Loifédérale surlesfonds deplacement (LFP), Bundesgesetz über dieAnlagefonds (AFG).
33Ordonnance surlesfonds deplacement (OFP), Verordnung über dieAnlagefonds (AFV).
34Forconditions imposed, seeanswer toquestion 20.
35Ordonnance surlaprévoyance professionnelle vieillesse (OPP2), survivants etinvalidité, Verordnung über
dieberufliche Alters-, Hinterlassenen- undInvalidenvorsorge (BVV2).S/WPPS/W/7/Add.18
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22. Cananapplication forlicensing befiledatanytimeoftheyearorarethere specific dates
torespect? Howlongdoesittaketocomplete thewhole licensing procedure? Please specify
incaseofdifferences between individuals andfirms.
Nogeneral accreditation/licensing procedure inSwitzerland36.Forauditing ofbanks and
investments funds/Fund Managements, anapplication forlicensing canbefiledatanytimeoftheyear.
Thewhole licensing procedure takes about 6months.
23. Arethere differences interms oflicensing requirements and/or procedures, according to
theactivities covered bythelicence (audit, insolvency, etc.)? Please specify. What kind
ofdocumentation isnecessary/accepted? Aredocuments issued inother countries acceptable?
Please specify.
Nolicensing procedure inSwitzerland, except forauditing ofbanks andinvestment funds/Fund
Managements.
Forauditing ofbanks andinvestments funds/Fund Managements thefollowing kind of
documentation isnecessary (Art. 35,BL):
- articles ofincorporation, bylaws andregulations;
- listofowners (shareholders, etc.);
- members oftheboard andofthemanagement: curriculum vitae, testimonials, etc.;
- federal professionals accountant ’sdiploma orequivalent foreign diploma forrecognised
banking auditors;
- proof ofauditengagements fromatleast5banks withcombined assets ofnolessthan
CHF 300Mio.;
- professional indemnity insurance.
Ingeneral, documents issued inother countries maybeaccepted.
24. What happens when thelicensing conditions arenolonger respected bytheindividual or
thefirm?
Noaccreditation/licensingprocedureinSwitzerland,exceptforauditingofbanksandinvestments
funds/Fund Managements37.
36Seeanswer toquestion 19and21.
37Seeanswer toquestion 19and21.S/WPPS/W/7/Add.18
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Forstatutory audit38,which hastobeprovided byparticularly qualified auditors39,itisthe
responsibility oftheboard ofdirectors ofthecorporation tobeaudited tomake surethatthequalification
oftheauditor meets thelegalrequirements.
Forauditing ofbanks andinvestment funds/Fund Managements thelicence willbewithdrawn.
V. RECOGNITION OFQUALIFICATIONS
25. Arethereanypossibilitiesfortakingaccountofqualificationsacquiredbyforeignprofessionals
inanother country? Arethere bilateral agreements withother countries inthisrespect?
Equivalent qualifications of,andrequirements metin,foreign countries arerecognized40.There
isonebilateral agreement forthemutual recognition ofqualification (Convention entre laSuisse et
laFrance relative àl’exercice desprofessions d’expert-comptable etdecomptable agrée/Vereinbarung
zwischen derSchweiz undFrankreich überdieBerufsausübung vonBücherexperten undanerkannten
Buchhaltern, RS/SR 0.142.113.496).
26. Arethere anyautomatic recognition ormutual recognition agreements between your
professional bodies andtheircounterparts inother countries? Ifso,please specify themain
characteristics ofsuchagreements; ifnot,please explain why.
There arenoautomatic recognition ormutual recognition agreements. However, qualification
of,andrequirements metin,foreign countries arerecognized autonomously bytheTHK41.
27. Where possibilities oftaking account offoreign qualifications exist, isafulllocalexamination
oralocaltraining exceeding 12months required? Please specify. Isalocallicence always
necessary topractice aregulated accountancy activity? Please specify when thisisnotthe
case.
No.Nolicensing requirement inSwitzerland, except forauditing ofbanks andinvestments
funds/FundManagements.However,legalqualificationrequirementforparticularlyqualifiedauditors42.
38Asdefined inanswer toquestion 7.
39Asdefined inanswer toquestion 9.
40Forqualified andparticularly qualified auditors seeanswer toquestion 9.
41Seeanswer toquestion 20.
42Seeanswer toquestion 9.S/WPPS/W/7/Add.18
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28. Whataretheaccreditation/licensingrequirementsimposedonforeignprofessionalsauthorised
topractice intheirhome country? Maycertain (regulated) activities becarried outonthe
basis ofaforeign licence?
Noaccreditation/licensing requirement inSwitzerland, except forauditing ofbanks and
investmentsfunds/FundManagements43.Certainaudits44havetobeprovidedbyqualifiedorparticularly
qualified auditors45.These activities maybecarried outonthebasisofequivalent foreign qualification.
Forauditing ofbanks andinvestments funds/Fund Managements, theSwiss Banking Commission may
recognize foreign orforeign controlled auditing firms46.
VI. REGULATIONS GOVERNING THE ESTABLISHMENT OFACOMMERCIAL
PRESENCE
29. Arethere anyrestrictions ontheform under which onecanestablish (partnership,
incorporation, other)? Please specify.
No.
30. Arethere restrictions onforeign direct investment andownership, including restrictions
applying tonotlocally qualified individuals orfirms? Please specify.
No.
Forauditing ofpension funds seeanswer toquestion 21.
31. Isthere arequirement ofaminimum number orpercentage oflocal directors, managers
orstaff(please specify)?
Majority ofboard ofdirectors ofa"joint stock company", andmajority ofadministrators of
a"co-operative society" mustbeSwiss citizens withdomicile inSwitzerland. Atleastonemanager
ofa"company withlimited liability" must bedomiciled inSwitzerland. Branch office requires
representative domiciled inSwitzerland.
Forauditing ofpension funds seeanswer toquestion 21(and20).
32. Arethererestrictionsontheabilityoflocallyestablishedfirmstodevelopinternationalrelations
(membershipofaninternationalnetwork,associationwithforeignfirms,etc.)?Pleasespecify.
No.
33. Istheuseofinternational orforeign names restricted forfirms?
No.
43Seeanswer toquestion 19and21.
44Asdefined inanswer toquestion 7.
45Asdefined inanswer toquestion 9.
46Forlicensing requirements seeanswer toquestion 21.S/WPPS/W/7/Add.18
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VII. REGULATIONSGOVERNINGTHEENTRYANDTEMPORARYSTAYOFNATURAL
PERSONS FOR THE PURPOSE OFSUPPLYING ACCOUNTANCY SERVICES
34. Istheentry andstayofprofessionals subject tolabour market testsoranyother restrictions?
Please specify.
Forspecialists andmanagers nolabour market testsareapplied. However, residency andwork
permits aresubject tomeasures fixing theoverall number ofwork permits allocated.
35. Isthere anyprocedure facilitating thetemporary entry andstayofprofessionals tosupply
accountancy services? Please explain.
Managers andspecialists areadmitted according tothespecific commitments ofSwitzerland
under theGATS.
36. Arethereanyrestrictions onhiring oflocalprofessionals byforeign firms andprofessionals?
Please explain.
Norestrictions applied; however, for‘localprofessionals ’holding ashorttimeresidence permit,
geographical andprofessional mobility isrestricted.
VIII. NATIONALITY/RESIDENCY REQUIREMENTS
37. Isacondition ofnationality/citizenship imposed topractice certain activities, tostartan
education, toobtain alicence, tobecome member ofaprofessional body, etc.? Please specify.
Forafirmtobecome amember oftheTHK, themajority oftheboard ofmanagers mustbe
Swiss nationals. However, membership ofTHK isnotimposed bylaw47.
38. Isacondition ofestablishment, prior residency orresidency imposed topractice certain
activities, toobtain alicence, tobecome member ofaprofessional body, etc.? Please specify
theconditions andthedefinition ofestablishment, residency, etc.when relevant. Isitpossible
tohaveaprofessional establishment inmore thanonecountry?
Swiss joint stock companies48must appoint atleast oneauditor/auditing firm having
residency/commercial presence inSwitzerland. (Art. 727/1, CO,RS/SR 220).
Norestrictions existregarding establishment inmore thanonecountry.
Conditionoflocalpracticeimplyingpriorresidency,andofresidencyimposedfornaturalpersons
tobecome amember oftheTHK, condition ofestablishment imposed forfirms tobecome amember
oftheTHK. However, membership ofTHK isnotimposed bylaw49.
47Forauditing ofbanks, investment funds/Fund Managements andpension funds, seeanswer toquestion 21.
48Sociétés anonymes etsociétés en commandite par actions, Aktiengesellschaften und
Kommanditaktiengesellschaften.
49Forauditing ofbanks, investment funds/Fund Managements andpension funds, seeanswer toquestion 21.