P2P lending in Switzerland works under Self-Regulatory Organisation (SRO) membership rather than a license from a bank. The framework is overseen by FINMA, and platforms act as intermediaries in the non-banking sector, complying to this framework. Tax reporting is the responsibility of an investor, the funds are held temporarily, and the return is not a guarantee.
P2P (Peer-to-Peer) lending or “crowdlending”, is a process that connects the individuals who borrow the money and the individuals who lend it (investors) and does not involve the participation of traditional financial institutions like banks.
Crowdlending in Switzerland operates in a stable jurisdiction with strong standards of trust and transparency. The key legal framework for every non-banking intermediary is the Anti-Money Laundering Act (AMLA). The law enforces the framework of compliance procedures and safeguard measures to ensure the transparency of every non-banking intermediary.
Swiss legal contracts like the assignment method defined by Article 401 of the Swiss Code of Obligations ensure that if a platform claims insolvency, the borrower would still own funds to the individual lender. Such contractual clarity and strength of enforcement makes Switzerland’s P2P landscape predictable.
SRO PolyReg is a self-regulatory organisation that supervises the financial intermediaries affiliated as members of the association by monitoring its members. As an SRO, PolyReg operates within the framework supervised by the Swiss Financial Market Supervisory Authority (FINMA).
P2P lending in Switzerland operates under an SRO model that establishes the regulatory framework for Swiss crowdlending. It is built around the Self-Regulatory Organisations (SROs) and financial intermediaries. A Self-Regulatory Organisation (SRO) is an entity that defines the due diligence and compliance requirements under the AMLA, monitors affiliated members, and ensures that the intermediaries comply with them. The affiliated members (intermediaries) must strictly comply with the Swiss Federal Act on Data Protection (FADP) when gathering, storing, or assessing sensitive financial data of the borrowers or the lenders.
PolyReg is one of the SROs operating in Switzerland headquartered in Zurich. PolyReg’s responsibilities include the supervision of the financial intermediaries in terms of AML, KYC, and GDPR compliance.
Membership in PolyReg allows financial intermediaries, platforms like Maclear, to legally operate in the non-banking sector. An audit by an independent Swiss company is carried out annually to ensure full transparency of the SRO.
FINMA is a national regulator and an authority within which the SROs operate. FINMA exercises indirect supervision over the SROs.
Maclear is a financial intermediary subject to indirect FINMA oversight through the SRO PolyReg framework. Maclear operates in and from Switzerland.
Swiss regulations make P2P loans subject to the Financial Services Act and Financial Institutions Act, classifying them as securities, requiring detailed information about disclosure and risk provided to the investors. Additionally, there are the regulatory limitations which all financial intermediaries should adhere to. These regulations include:
- 1 million CHF threshold for the total amount of funding. After the threshold is crossed, the requirement to be licensed by FINMA becomes automatic.
- 60-day limit for the holding of investors’ funds. Exceeding the limit would qualify the funds as public deposits in legal terms.
Crowdlending in Switzerland relies on transparency and compliance procedures established within an SRO-model.
SROs establish the factual framework for running compliance checks, ensuring registration and supervision of the financial intermediaries in a non-banking sector, and enforce the obligatory annual audit to maintain transparency.
A Self-Regulatory Organisation is the legal entity responsible for the supervision of the financial intermediaries in Switzerland by ensuring their compliance with AML, KYC, and GDPR policies.
SROs like PolyReg carry out members’ monitoring and define due diligence standards. The main goal is to ensure that all the members can legally function in the jurisdiction of Switzerland.
No, Maclear is not directly supervised by FINMA.
Instead, Maclear is subject to indirect oversight through a membership in SRO PolyReg. PolyReg works within a framework supervised by FINMA and ensures that all the platforms like Maclear comply with the Swiss compliance standards defined by the national regulator.
ECSP stands for the European Crowdfunding Service Provider regulation. It provides an EU-wide authorisation and operational framework for P2P services and functions across all the EU member states. The regulation applies to the campaigns up to 5,000,000 EUR per project owner in a period of 12 months of the campaign. The regulation is supported by the maintenance of a public register for all the providers within the European Union by the European Securities and Markets Authority (ESMA).
SRO-licensing functions similarly to the ECSP license, though with specific Swiss regulatory limitations. As Switzerland is not a member of the European Union, the ECSP regulations do not apply directly.
SRO membership functions similarly to an ECSP authorisation but applies specific Swiss limitations; the two regimes are not equivalent.
The investors are protected by the Swiss law. Article 37d of the Swiss Banking Act in particular regulates account segregation and defines it. The article asserts that custody assets are held by a bank or other financial institution separately to the balance sheet of the institution.
Furthermore, a financial intermediary does not hold investors' funds permanently. After a fundraising period expires, the money is transferred to the borrower. To ensure further protection, Swiss law recognises the right to the capital claim by the investor on the premise of a private contractual right. The investor authorises this right and the legal existence of the authority does not depend on the location of the debtor.
Maclear has a feature that helps protect the investor in case of the borrower's bankruptcy. Through the Provision Fund, formed from market-based fees, the investor may continue to receive interest during a delay; this does not guarantee the return of principal. As a financial intermediary, Maclear acts as a securities holder and may realise collateral, with any returned funds distributed proportionally to manage temporary repayment difficulties. None of these mechanisms guarantees capital protection.
Yes, if a crowdlending platform in Switzerland goes bankrupt, your funds are protected.
In case of platform insolvency, borrowers are protected by the premise that the contracts remain enforceable. The loan agreement between an intermediary and a borrower is not invalidated in case of the former’s insolvency. Many platforms also manage loan disbursements and payment instalments through escrow accounts that are managed by a third-party financial institution. In case of platform insolvency, the borrower’s funds on an account managed by the third party remain secure.
This section provides general information and does not constitute tax or legal advice. Tax treatment of P2P lending income depends on the investor's canton, residency, and personal circumstances. Consult a qualified Swiss tax advisor.
P2P income is considered an interest income under the general Swiss framework. Capital gains for an investor in Switzerland are not usually taxed, but the interpretation and the factual regulation depend on the rules of the specific canton. The Swiss system gives the cantons a high degree of tax autonomy, which makes the framework differ regionally. Investor’s residency rules also define the specific framework for taxation in each particular case.
Maclear does not withhold taxes. Instead, the investors report on gains and income themselves. They must declare all investment income (be it dividends or interest) on the annual tax return. The declarations are filed annually using the official SFTA Tax List.
Interest income from P2P lending in general is treated as taxable income and requires an investor to file a report on it in their annual tax declaration.
Although capital gains for private investors are usually exempt from tax, each case is assessed individually based on the circumstances, like canton, residence, and the tax status of the investor. Due to the high degree of autonomy of a canton, each region may have specific reporting requirements and calculation methods. Therefore, the local tax legislation is a point of consideration.
Overall, any individual aged 18 or older with a Swiss bank account can participate in Swiss crowdlending. Non-Swiss nationals may invest provided their jurisdiction allows cross-border P2P operations. Access to P2P investment in Switzerland requires obligatory KYC and AML checks, as well as a valid ID.
There are usually no specific restrictions for the particular jurisdiction, meaning that investors from the EU, the EEA, and the United Kingdom can participate in P2P lending as long as they complete standard compliance procedures. However, some platforms may limit the accessibility of P2P operations to the European Union and Swiss residents.
Yes, non-Swiss residents can invest on a P2P lending platform.
The investors need to undergo standard checks, including the KYC and AML compliance. In some cases, the platform of the investor's choice may ask for the completion of a risk-assessment questionnaire to assess the investor's credibility.
Compliance, transparency, and risk management are all essential terms of a regulated investment platform in Switzerland. When choosing a specific platform, investors can consider the following checklist to assess the key aspects of the platform:
1) SRO membership. The financial intermediary should be verified as a registered member of an SRO in a non-banking sector to ensure adherence to AML, KYC, and GDPR standards in the Swiss jurisdiction.
2) Transparency and audit procedures. The platform should undergo annual audits by carried out by an independent organisation to ensure complete transparency of the operations.
3) Clear disclosure of the regulatory framework. The platform should explain the clear limits on its authority and the status of adherence to an SRO regulation.
4) Risk management. Whether the borrower and platform-induced risks are clearly distinguished and separated. It is worth assessing how the platform manages these risks by segregating the funds of an investor and by introducing a mechanism managing temporary repayment issues.
5) Entity signals and reputation of the intermediary. A good signal of transparency would be the platform highlighting adherence to the SRO rules as well as a consistent and clear explanation of the mechanisms of transparency and asset management. This signals credibility and proper human due diligence.
Maclear distinguishes itself by providing an accurate overview of the SRO regulatory model, avoiding the common misconception of a “FINMA-licensed” status of the platform. The intermediary explains the distinctive framework of the SRO model, comparing it to the EU ECSP framework within a clear set of criteria which is rarely discussed. Maclear distinguishes between borrower bankruptcy and platform insolvency risks by specifying what is the exact legal framework for the management of each case in Switzerland. The platform also highlights its entity-specific features like SRO PolyReg membership and the Provision Fund for investors’ protection.
Yes, P2P lending is regulated in Switzerland through an SRO-model. The model relies on the Self-Regulatory Organisations registering the financial intermediaries in the non-banking sector and ensuring these entities comply with the AML, KYC, and GDPR regulations. The SROs operate within the framework supervised by the Swiss national authority FINMA.
PolyReg is an officially recognised Swiss SRO for financial intermediaries. PolyReg is headquartered in Zurich and supervises the members on the basis of the Swiss Anti-Money Laundering Act (AMLA) and the Financial Services Act (FinSA), ensuring compliance and transparency of its members. Is a private association which is indirectly supervised by FINMA.
No, Maclear is not supervised by FINMA. Maclear is a financial intermediary in the non-banking sector that does not hold a FINMA license but is a member of the SRO PolyReg. The membership provides oversight in the areas of anti-money laundering and due diligence. To become a member of the SRO PolyReg, Maclear went through a multi-step vetting process, including a financial solvency check, a reputation check, and a competence check.
P2P lending income in Switzerland is treated as interest income. Capital gains for private investors are usually exempt from taxation. However, the canton that supervises the investor’s taxation and the investor’s residency determine the rules for a specific case. Investors in Switzerland are responsible for submitting an annual tax declaration stating their own income themselves.
Swiss crowdlending regulation differs from the EU ECSP in the scope of the applied regulation, the legislative framework, regulatory standards, and regulatory entities. Swiss crowdlending is a local SRO framework combined with national legislation, whereas the EU ECSP is a EU-wide unified framework. The SROs under the indirect supervision of FINMA regulate crowdlending in Switzerland, whereas NCAs in each EU member state are responsible for the EU ECSP local enforcement.
Yes, non-residents can invest on a Swiss P2P platform provided they have successfully passed all the compliance checks, including AML and KYC, and have a valid ID and an officially proven residency where they reside. Overall, there is no restriction for the non-residents who invest on a Swiss P2P platform; however, some intermediaries may limit the availability of the platform to the Swiss and the EU nationals.
No, Maclear currently does not have a FINMA fintech license. It is a company’s future plan to acquire one. Maclear is currently a member of the SRO PolyReg and is subject to annual audits run by the independent organisations to ensure transparency of operation within the SRO framework indirectly supervised by FINMA.
The content of this article is provided for informational and educational purposes only. It does not constitute investment, financial, tax, or legal advice. P2P lending and crowdlending investments carry a risk of partial or total capital loss. Past performance is not indicative of future results. Liquidity on a secondary market is not guaranteed. Readers should conduct independent research and consult qualified advisors before making any financial decisions. Availability of products and services may be restricted in certain jurisdictions.
