Finance

Payment delays in SMEs can cause liquidity problems; preventive measures include customer reviews and personal conversations. In the event of non-payment, a request for enforcement should be considered.

Pillar 3a in Switzerland is used for supplementary retirement provision, where contributions are tax-deductible. The maximum allowable contributions are set annually by the Federal Office for Social Insurance.

The Swiss pension system relies on old-age, occupational, and private provision using pay-as-you-go and funded schemes. The first ensures existence, the second and third the standard and additional needs in old age.

The IASB proposes changes to IFRS 16 to clarify the assessment of assets and lease liabilities in sale-and-lease-back transactions. Comments on the changes are welcome until March 29, 2021.

The RAB is reducing its jurisdiction and will only supervise listed bonds, which does not affect investor protection. Foreign audit firms are subject to the RAB when they audit companies that are relevant to the capital market in Switzerland.

The State Secretariat for International Financial Matters has established a working group for Blockchain/ICO to evaluate the legal framework. The final report is scheduled for the end of 2018.

The authority to levy direct federal tax and value-added tax should be extended until 2035, key sources of the federal budget. Voting on the new financial order 2021 will take place on March 4, 2018.

Participation certificates allow corporations an alternative to issuing shares, as they provide equity without voting rights. Holders benefit from profit and goodwill, but without a say.

Mezzanine financing combines characteristics of debt and equity, often used in startups due to risk sharing and profit participation. Profit participation loans and convertible loans are common forms, with advantages such as long-term capital provision without direct voting rights.