On May 24, SWI PRL issued details of progress made on SIFEM act.
The Foreign Policy Committee of the Council of States examined for the first time the law on the financial development company SIFEM (22.084), to consider requirements.
Discussion Overview
The introduction was decided by the committee unanimously, and the examination by article will take place at one of next committee sessions in the third quarter of 2023.
SIFEM (Swiss Investment Fund for Emerging Markets) is the Swiss development body.
It invests in private companies in developing or emerging countries where, in addition to financial performance, and widespread development, job creation is also expected.
The SIFEM bill must make it possible to translate into a law the regulations relating to SIFEM, which until now were only the subject of an order, so that it is legally sound.
As part of the review of the project, the Council of States Foreign Policy Commission (CPE-E) heard from the Chairman of SIFEM's Board of Directors, Jörg Frieden, and spoke with Federal Councillor Guy Parmelin on issues relating to legal form of SIFEM.
These related to its profitability, the delegation of its operational activities to external partners, and the opportunities and risks for investments in the course of operation.
At the end of these discussions, the committee decided, without opposition, to enter into the matter on the Federal Council's draft so a detailed assessment can be made.
It will proceed to the discussion by article during the next quarter and the draft should be examined by the Council of States at a session that will take place in autumn 2023.
Jun. 2023 Approved Bill
On Jun. 30, 2023, SWI PRL updated on legal framework for SIFEM AG, Commission adopted an amendment and approved bill 22.084, 9 votes to 0, with 2 abstentions.
In addition to the Federal Council's draft, FAC-S is proposing to the Council of States that SIFEM AG be required by law to cooperate with the relevant federal agencies, in particular the SDC and SECO, in order to achieve development cooperation objectives.
Sep. 2023 Council of States Update
On Sep. 25, 2023, SWI PRL announced Council of States agreed with the legal basis for Sifem, federal development financing company, approved Federal Council proposal.
Swiss Investment Fund for Emerging Markets (Sifem) has been in operation since 2011 and, in the words of the Federal Council, its activities have proven successful.
However, Federal Council said legal basis for this (regulation level) no longer sufficient.
So Federal Council submitted law to SWI PRL on development finance company Sifem.
It regulates purpose and tasks of Sifem, principles of its business activities, financing, and the position of the federal government as the main shareholder.
Council of States wants to explicitly oblige them to work with relevant federal authorities citing Directorate for Development and Cooperation (Deza) and the State Secretariat for Economic Affairs (Seco) as example; now National Council must decide.
Nov. 2024 Enforcement of Act
On Nov. 27, 2024, SWI GVT confirmed that the Federal act on the development finance corporation SIFEM enter into force on Jan. 1, 2025, related ordinance also issued.
Referendum deadline has expired without having been used; the organization of Swiss Investment Fund for Emerging Markets (SIFEM) will be regulated in a separate law.
The draft was met with unanimous support during consultation and was refined based on feedback from participants; Federal Council approved the bill on Dec. 16, 2022.
During the parliamentary debates, art. 6 was supplemented, with a mandate given to SIFEM to collaborate with Confederation to achieve aims for development cooperation.
On Jun. 14, 2024, Federal Chambers unanimously adopted the law in the final vote.
The referendum period expired on Oct. 3, 2024 without having been used.
Regulators
SWI GVT; SWI PRL
Entity Types
Corp
Reference
Ord 90830, Act FF 2024 1458, PR, 11/27/2024; PR, 11/27/2024; PR 9/25/2023; PR 6/30/2023; PR 5/24/2023; Bill 22.084
