Financial sector stability: allowing the issue of CoCos in Switzerland
Berne, 24.8.2011 - Changes in withholding tax should allow Swiss companies to issue their bonds under competitive conditions in Switzerland. These changes would also apply to the newly created contingent convertible bonds (CoCos). Their issue in Switzerland ensures the application of Swiss law, thereby increasing the legal security of this instrument. At the same time, these changes should strengthen the security function in withholding tax. Today, the Federal Council approved a dispatch with corresponding measures for the attention of parliament. Initial measures in this vein were introduced within the scope of the bill on dealing with systemic risks of big banks ("too big to fail" or TBTF).