The Federal Act on Book-Entry Securities - Action Points for Issuers and Banks

The Federal Act on Book-Entry Securities - Action Points for Issuers and Banks

The Federal Act on Book-Entry Securities (“BESA”) creates a new legal framework for the professional trading of securities held with intermediaries. To a great extent, the BESA codifies today’s commonly-accepted practice of how such securities are traded. The BESA will enter into force on January 1, 2010. In this context, we are of the view that banks and issuers should consider certain issues as discussed below.