In today’s armed conflicts, states often transfer security functions to private military and security companies (PMSCs). While the presence of private contractors in armed conflicts is not a new phenomenon, their numbers have increased over the last years and, more significantly, the nature of their activities has changed. In addition to the more traditional logistical support, PMSCs have more and more become involved in activities that bring them close to the heart of military operations. Those activities include guarding buildings, protecting persons, escorting humanitarian aid convoys, training and advising armed forces, operating complex weapons systems or gather intelligence. Sometimes, even participation in armed combat is a service provided by PMSCs.

Despite the global trend to rely on PMSCs, little has been until recently undertaken by governments or international institutions to clarify what their role in the context of armed conflicts is and should be. Given the traditional concept of the state monopoly over the use force, the question arises as to which security functions should be delegated to private companies or organizations. Upholding international humanitarian law and human rights law is another major concern. Supervision and control over the activities of PMSCs so far has been patchy. When offences are committed, companies or their employees are often not adequately called to account., and knowledge of the applicable international humanitarian law and human rights law is frequently insufficient.

On 2 December 2005, the Swiss Federal Council adopted a report on private security and military companies. It instructed the Federal Department of Foreign Affairs (FDFA) to launch an international initiative (see link to the left) to promote compliance with international humanitarian law and human rights by private military and security companies in conflict areas. Jointly with the International Committee of the Red Cross (ICRC) and through the release of the so-called Montreux Document in September 2008, the FDFA brought this initiative to a first conclusion. On a parallel basis, the FDFA encourages a follow-up by the PMSC industry to the Montreux Document, such as an industry-wide code of conduct that includes effective accountability mechanisms.

The Federal Council also instructed the Federal Department of Justice and Police to examine the possibility of setting minimum conditions for the Swiss government's own use of private security companies to perform security duties. An ordinance on the use of private security firms by the Confederation has since been drafted and was approved by the Federal Council on 31 October 2007. It came into effect on 1 December 2007.