The precondition for recognition of residence implies that banks approved in Switzerland may not enter into new contracts or modify existing contracts subject to foreign law or which provide for a foreign jurisdiction only if their counterparties contractually recognise FINMA`s power to order a suspension in the critical phase of the resolution procedure. In January 2016, Article 12, paragraph 2 bis, of the Banking Regulation, under which a Swiss-approved bank and a stockbroker wishing to enter into contracts or modify existing contracts, either under foreign law or foreign jurisdiction, came into force, must ensure that their counterparties contractually acknowledge a possible FINMA stay. The recognition of contractual stays by the counterparty must make effective the exercise of the bank`s contractual stays vis-à-vis a British financial institution or certain of its subsidiaries, as if the financial agreement were subject to the law of an EU Member State. The condition of recognition of residence only requires that it be “enforceable” – strictly speaking, it is not necessarily a written contractual clause. Similarly, legal advice that confirms applicability is not technically necessary. You agree to defend, compensate and compensate FINA, its subsidiaries, subsidiaries, licensees, employees, employees, representatives, third parties and independent contractors against any claim, damage, cost, debts and expenses (including, but not limited to reasonable legal fees) that are out of your behavior, use or inability to use the site , your violation or alleged violation of the website`s terms or, your unauthorized use of FINA content or your violation of the rights of another. This obligation to recognize Stay is intended to ensure that important contractual relationships in stressful situations remain valid and active, but also that FINMA`s restructuring measures can be implemented worldwide. The suspension imposed by FINMA also affects the exercise of any right of compensation, security and transmission for a limited period of two working days. In the event of an amendment to an existing contract, the Swiss bank must also ensure that a clause relating to the contractual recognition of a stay is included. On a case-by-case basis, it is appropriate to consider whether a treaty change is considered an amendment that is subject to the contractual obligation of recognition (for example). B questionable if an annex to a contract is changed). Article 56, paragraph 1, of the BIO-FINMA explains the contractual liability as well as the obligation of recognition of stays imposed by FINMA. In scope financial agreements are (i) agreements relating to securities or a securities group or index (including for the purchase, sale or loan, options and repurchase transactions); (ii) agreements on future deliveries (including purchase, sale or loan, options and their repurchase operations); (iii) futures and futures contracts, including contracts (excluding a commodity contract) for the purchase, sale or transfer of a property, service, duty or interest rate setting period at a fixed price on a fixed date; (iv) swaps and options relating to interest rates, cash or other foreign exchange agreements, currencies, commodities or weather conditions, issues or inflation (and similar agreements or transactions subject to recurrent swap or derivatives markets); (v) all other derivatives and masters for these derivatives, one of the above agreements and contracts for the sale, purchase or delivery of a currency; (vi) intrabank lending contracts; and, finally, vii) all other agreements having the same effect as the aforementioned agreements within the scope of the scope.