News
The New Adoption Act in Switzerland
In Switzerland, the first recast of the law of adoption took place in the 1970s.
Today, 40 years later, Switzerland decides to adopt new rules and adapt its right to the new social patterns. On 28 November 2017, the Federal Council accepted the review of the law of adoption. On July 5, this new entitlement on the 1st January 2018 came into force.
The review of the aforesaid Law enshrines the desire to put the welfare of the child at the center of the adoption decision. This review takes into account the requirements of article 21 of the United Nations Convention on the rights of the Child.
As a result, the provisions of the Civil Code have changed. The conditions of adoption and the rules on the secrecy of adoption are relaxed.
The change of this Act gives the possibility for people living in a registered partnership or concubinage, to adopt the child of their partner (Article 264c CC). This facility is accentuated by the easing of legal provisions. More specifically, the minimum age of adopters is now less restrictive, from 35 to 28 years.
Furthermore, the joint adoption (article 264a of the CC) is possible for the married couples, that they have been in a common household for at least 3 years (5 years according to the former legislation). It is important to note that the joint adoption of a third party is forbidden to same-sex couples as well as to cohabiting partners. The only adoption of a child that is allowed, is the one in case a couple has been living together for at least three years. Thus, the paradoxical situation persists for homosexuals, since they have the right to adopt a child as long as they are single, but they lose it once they enter into a registered partnership.
The second amendment concerns the secrecy of adoption. The question of the individual needs of the person concerned, whether it’s about the adopted person, the biological parents or the adoptive parents, still remains.
The interests of these protagonists are opposed. It is necessary to decide what is the most important between the interest of maintaining secrecy or the interest of obtaining information. While other countries have been practicing for several years the open adoption, a system that allows biological and adoptive parents to have information about each other, in Switzerland, only confidential adoption was authorized.
According to the previous article 268c CC, only the adopted person could obtain information on the identity of the biological parents. This right was based on another right: the right to know its origins, deducted from art. 10 Al 2 Cst.
The previous article 268c CC gave the unconditional right to the adopted child, to obtain the data relating to his biological parents, even if they (biological parents) are opposed to any personal contact.
The Civil Code only required that the biological parents were informed before communicating the requested data to the child (art 268c Al 2 CC). The deduction from the previous art. 268 (c) CC, was that Swiss law reserved to the adopted child an absolute right to obtain information about his origins.
Now the biological parents will also be able to obtain information about their child, if he consents to it once he is an adult (new art. 268b al. 3). If the child is a minor, the consent of the adoptive parents will also be required (new art. 268B 2).
Consequently, it is interesting to note that the number of children adopted in Switzerland has been steadily declining in recent years. According to the figures of the federal statistical Office the number is four times lower than in 1980. For some specialists this decrease would be linked to an "improvement of child protection systems, family planning and the prevention of abandonment". Moreover, international adoption becomes more complicated due to the ratification of Switzerland in 2003 of The Hague adoption Convention. Thus, the new provisions on adoption are likely to facilitate adoption procedures and increase the number of adopted in Switzerland.
Switzerland : end of bank secrecy in tax matters for foreigners since January 1st, 2018
Since January 1st, 2018, Automatic Exchange of Information (AEOI) is effectively applicable, so that it is now possible for the Swiss Tax Administration to provide to its partner countries banking and financial information about foreign tax payers who have an account in Switzerland.
This progress in terms of transparency aims to reduce tax evasion through a mutual exchange of information between tax administrations. OECD is at the origin of this initiative and approved the implementation of Common Reporting Standard in order to define responsible authorities for the information processing and to describe how this information will be shared.
The principle is simple: each year, financial and banking institutions based in AEOI’s partner states must transmit to their tax administration information regarding their foreign clients. For instance, they have to communicate the tax number, the bank account number, the amount balance at the end of the year or the gross investment income. It is then to the Tax Authorities to inform jurisdictions where foreign tax-payers come from of the data in their possession. Nevertheless, this mechanism is only possible if a bilateral agreement has been signed between the two involved states, that is to say the tax payer’s home country and the one where the account has been opened. Finally, the obligation of using exchanged information solely for tax purposes must be strictly respected. The State in question will otherwise have to deal with its partner jurisdictions’ refusal to transmit collected data.
In Switzerland, after approval of the legal framework of AEOI by the Federal Assembly in December 2015, financial institutions started to collect information in January 2017 in view to transmit it to the Swiss Federal Tax Administration (SFTA). Since January 1st 2018, SFTA is now able to exchange information with its partner countries, such as Australia, Canada, UE member States, Japan or Norway. In addition, the communication of such data is based on the principle of reciprocity which implies not only that Switzerland must provide information but also that partner countries must be able to do so if a Swiss citizen has an account abroad.
Nevertheless, Switzerland’s position must be qualified, particularly regarding strictness with which it interprets the principle of specificity. Indeed, various bilateral agreements in which it took part can only operate in respect of a genuine use of the collected data, in others words for the sole purpose to collect taxes and not to tackle corruption or money laundering. Shared between banking secrecy and transparency, Switzerland will closely observe that this principle is respected and will not hesitate to suspend data exchange with its partners in the opposite case.
Finally, by meeting standards of Common Reporting Standard and of Automatic Exchange of Information, Switzerland safeguards its interests and asserts itself as a new place of financial transparency.
Our office participating in the September 2017 London GJN conference
The 40+ attorneys members of the Global Justice Network meet once per year overseas (usually in the Americas) and once in Europe to discuss and coordinate cross border litigation issues and files from all over the world. In September 7 and 8, 2017 this important judicial event took place in London at the prestigious Honorable Society of the Inner temple whereas the opening the day before (Sep,6) was held at the Barristers Chambers and at SkyGarden Walk.
Constantin Kokkinos a founding partner of the GJN and member of its steering committee was on the financial litigation panel and presented the forthcoming attorney’s liability for unlawful behavior of their clients which is to become effective in the E.U. in 2019 as per the contents of Directive 2011/16.EU.
Several other issues pertaining to international collaboration amongst the GJN members were discussed, notably: A joint European action over the VW consumer litigation which is to take place in the Netherlands , the environmental disaster at the Samarco dam collapse in Brazil and the compensation of its victims, the artificial intelligence and Robotics in law practice in the U.S. , the new Consumer protection law in South Africa etc.
A new issue of cross border collaboration between GJN members has emerged on concerted practices in between the four major European truck and bus manufacturers heavily fined by the European Commission for an industry cartel keeping end prices artificially high. A fifth manufacturer from Scandinavia was also fined later (on Sep,27th ) on the same grounds. GJN member attorneys are already active on their jurisdictions to assist bus and truck owners affected by these practices that lasted 14 years (from 1997 up until 2011) and should now be entitled by a decent compensation.
The 2017 London venue was a remarkable success. Inspired by the very first conference of the Global Justice Forum 15 years ago organized also in London by our San Francisco partners Lieff Cabraser Heinmann and Bernstein (repeatedly ranked as the #1 law firm in the whole United States) and of the Global Justice Forum seat at the prestigious Columbia Law school in N.Y., the GJN gathered this time some of the world’s most prestigious law firms across the continents in an effort to collaborate for the benefit of a better and efficient justice around the world.
Our partner firm in the U.S. obtains record deal for data breach
After two years of intensive litigation, our U.S. partner firm LCHB has helped to conclude a deal valued at $115 million to end litigation over a massive 2015 data breach.
In 2015, the company Anthem, life and health insurance Company was victim of the biggest personal data breach ever.
LCHB has created a pool of funds to provide credit protection and reimbursement for customers. He also paid up to $38 million in attorneys’ fees.
Anthem, the nation’s second-largest health insurer in USA will provide the nearly 80 million victims of the data breach with two years of credit monitoring, cover customers' out-of-pocket expenses stemming from the breach, and pay cash compensation to customers who already got their own credit monitoring.
The settlement also calls for Anthem to guarantee a certain amount of funding for information security and to make certain changes to its data security systems.
This case shows us that cyber-attacks are becoming more common, sophisticated and determined. It is therefore essential that companies have an adapted security program in order to protect the personal data that the clients entrust to them.
Just like our partner, we are dedicated to defending our customers against the violation of personal data.