Daniel Flühmann

Bär & Karrer Ltd

Zurich www.baerkarrer.ch

daniel.fluehmann@baerkarrer.ch Tel: +41 58 261 56 08

Biography

Daniel Flühmann is co-head of Bär & Karrer’s fintech practice group and a partner in the banking, insurance and finance department. His work focuses on financial institutions and financial regulation. Having graduated from the University of St Gallen (HSG) in 2003, Daniel Flühmann obtained his doctorate in 2008 with a thesis on the supervisory law aspects of electronic banking. He was admitted to the Zurich Bar in 2011. Prior to joining Bär & Karrer, Daniel Flühmann worked in the legal department of a reputable Swiss private bank.

While I still feel young and ambitious, I can look back at more than 10 years of legal practice in the field of financial regulation. The work with fintechs has given me many new and exciting challenges, but I equally value and enjoy the more traditional banking practice – if there is still such a thing – in which my career is rooted.

How has the role of banking lawyer developed since you first started practising?

As a lawyer in a jurisdiction that is attractive for inbound business but also has its own, strong financial marketplace, the work has continuously become more international and to some extent also more complex – not least as a function of the developments in the regulatory frameworks themselves. I find this tremendously interesting and it is a privilege to have the ability to work with clients and counsel across the globe, but it certainly makes it challenging to stay fit on all the relevant topics. I continue to work on my understanding of the business of banking every day so that we may provide our clients with the most practical advice even on the most cutting-edge projects.

In your view, are banks seeking to play a part in cryptocurrency or otherwise given its inherent regulatory uncertainties for the time being?

This is certainly an interesting question at this juncture. We see the entire spectrum from rejection (which has become less prevalent) to embracing the developments around crypto to full-on specialisation, in the Swiss market. In some areas of the business, there is now also somewhat settled law, which gives additional comfort to banks that seek to play a role. However, in my view, the risks remain significant, in particular in the decentralised finance space. Building more robust market infrastructures will be an important next step, which has to some extent been anticipated in the new Swiss distributed ledger technology regulation.

If you could introduce one reform to banking, what would it be and why?

Switzerland is walking a narrow path between having its own regulatory frameworks and replicating foreign regulation. In some areas such as fintech and payments, this has in my view led to incompatibilities that make it difficult for market participants to provide a coherent service across Europe. There is not one single reform that would solve this, but I firmly believe that international market access – both ways – should be an important consideration where new or revised regulation is contemplated.

What skills and values would you encourage in the next generation of banking lawyers?

While we would like to think of ourselves as innovative and cutting-edge, I think it helps to recognise that our work remains grounded in the law and that we need a firm grasp of that framework to excel at our work. That said, it is equally important that we have to be able to apply this knowledge in a manner that is most beneficial for our clients. Thus, I would say to anyone considering a career in our field that they should focus at least as much on understanding the business or their clients and the world surrounding them (and themselves) as they do on honing their legal skills!

What is the best piece of advice you’ve ever received?

At university, when asked about his interpretation of a contract clause, one of our professors simply responded: “who are we representing?” I realised then and there that the key to being a great lawyer is to always have your client's best interest in mind and to focus on pragmatic and practical advice rather than on the mere display of legal prowess.

WWL says: Daniel Flühmann is a seasoned lawyer commended for his outstanding work advising banks, insurance companies and other financial services providers on regulatory and contract law matters.