Olivier Stahler

Lenz & Staehelin

Geneva www.lenzstaehelin.com

olivier.stahler@lenzstaehelin.com Tel: +41 58 450 70 00

Biography

Olivier Stahler is a banking partner, recognised for his extensive technical knowledge, particularly of Swiss asset management regulations. He frequently advises on granting licences by the Swiss financial regulator for banks, securities houses and funds. Olivier Stahler is involved in the structuring of financial products, and in particular private equity and hedge funds. Further, Olivier acts for financial institutions and corporate borrowers both in domestic and international financing transactions.

How has your practice in banking regulation changed since you first started your career in the sector?

In recent years, we have seen that international regulatory aspects becoming increasingly important when advising banking institutions. Twenty years ago, Swiss institutions’ business models were based on purely domestic regulations. Today, Swiss banks must design and implement business models, which take into account foreign regulations. Furthermore, non-Swiss financial institutions can access the Swiss market provided they comply with cross-border Swiss regulations, and in particular the requirements deriving from the Federal Act on Financial Services, which entered into force on January 1, 2020. In addition, technological developments have not only changed our way of working but have also had an impact on certain regulatory requirements.

What do clients look for when selecting an effective banking law adviser?

I believe that the key is to be in a position to understand the client's banking strategies and more generally, its business model to be able to provide advice tailored to its objectives. Banking business models involve multijurisdictional aspects and consequently several available set-ups. It is therefore also essential to have a good understanding of all relevant international aspects.

Furthermore, the ability to anticipate the various legal and regulatory issues that arise along the way is particularly important. While the lawyer's understanding is central, it is crucial to be in a position to coordinate all the relevant aspects of banking operations with the different stakeholders accordingly. In particular, where the involvement of financial market supervisory authorities is necessary, the experience of the lawyer can make a real difference.

How is the increasing prominence of crypto assets affecting your clients in the financial sector? How are regulators responding?

The increasing prominence of crypto assets has offered numerous business opportunities to new players, who have been in a position to develop alternative models. Certain of these players are no longer perceived as operating mere niche business. The Swiss Financial Market Supervisory Authority (FINMA) has been considering digital assets and blockchain technology for a number of years. Several guidelines have been issued to help financial institutions navigate through various types of digital assets. The first Swiss fund in crypto-assets was approved by FINMA in September 2021 and exchange-traded products on crypto-assets have been available in Switzerland since 2019. While assessing the specific risks and features of digital assets, FINMA generally shows a certain degree of flexibility as long as technologies are obviously not used to circumvent existing rules and goals of financial market legislation, in particular in the field of AML.

How are banks working with regulators to tackle money laundering?

Switzerland is one of the prominent international centres for private client wealth management, it is therefore particularly subject to money laundering risks. Swiss banks must put in place compliance frameworks duly tailored to the relevant institution's appetite for risk. In its 2021 paper on risk monitoring, FINMA sets in particular that transaction monitoring was the method that most frequently revealed suspicious conduct on the part of financial intermediaries, whereas for many years, media reports were the primary source of information. The Swiss regulator indicates in substance that this development illustrates the need for greater awareness and a more proactive approach on the part of Swiss banks when fulfilling their AML reporting obligations.

How does your knowledge of financial products help sharpen your regulatory advice to clients?

The diversity of technically complex and constantly evolving financial products not only makes the day-to day activity of a banking lawyer particularly interesting and motivating, but also enables me to advise Swiss and foreign banking institutions in a way that is efficiently aligned with their asset management arm.

How do you effectively prepare for cross-border structuring of financial products?

The regulatory predictability is of prime importance when structuring financial products involving multijurisdictional elements. It is indeed key to put in place a structure, which anticipates the regulatory developments in the jurisdiction of the product itself, the jurisdiction of the relevant manager and obviously the various jurisdictions where the product will be marketed. Furthermore, tax aspects need to be managed hand-in-hand with the regulatory aspects.

What are your priorities for the banking group of your firm going forward?

I believe that the people who work in a firm define both its culture and its future. An important and growing aspect of our banking group involves tracking rapid market and regulatory changes. We are often closely involved in many of the leading regulatory initiatives working with legislators and industry bodies, as well as clients to achieve practical outcomes in the development of regulations. A good understanding and knowledge of the industry, as well as a vision of the national and international developments, are in my view key. Our main priority for the banking group is to ensure that the next generation of clients continue to benefit from the next generation of Lenz & Staehelin lawyers through their in-depth knowledge of the banking and asset management industry, as well as their vision for the future of this industry.

WWL says: Olivier Stahler’s specialism in banking and finance law sees him act for a broad range of local and global financial institutions to provide regulatory advice on financing transactions.