News
18 August 2024
Stablecoins: risks and challenges for issuers of stablecoins and banks providing guarantees
In July 2024, the Swiss Financial Market Supervisory Authority published a new Guidance.
In its Guidance 06/2024, FINMA comments on default guarantees, the associated risks and discloses its practice on stablecoins. It further draws attention to the increased risks in the area of money laundering.
15 August 2024
Requirements on continued professional education for OSFIN supervised organisations
Based on FINMA's decision that the qualified managers of each financial institution are now responsible for specifying the legal training obligations, taking into account the principles of appropriateness, topicality, quality and effectiveness, OSFIN is replacing the previous practice with a minimum framework for the financial institution's training requirements.
Requirements on continued professional education from OSFIN (in German)
13 July 2024
Requirements on continued professional education for FINcontrol supervised organisations
Due to FINMA's decision that minimum standards no longer have to be set with regard to training requirements, FINcontrol Suisse Ltd will no longer impose any blanket binding requirements. FINcontrol Suisse Ltd considers half a day per year to be appropriate as a benchmark for qualified managers of an asset manager or trustee.
Information from FINcontrol Suisse Ltd
1 July 2024
Mutation processes for portfolio managers and trustees: adjustments as of July 01, 2024
FINMA has announced adjustments regarding the handling of mutation applications for portfolio managers and trustees.
The adjustments relate in particular to mutations requiring authorization, that have tob e submitted via FINMA’s electronic data collection patlform, EHP, but also so-called notifiable mutations.
The adjustments apply from 1 July 2024.
Information from FINcontrol Suisse Ltd
Information from OSFIN (in German)
Information from AOOS (in German)
30 June 2024
New FINMA Guidance on cyber risks
In June 2024, the Swiss Financial Market Supervisory Authority published a new Guidance.
In its Guidance 03/2024, FINMA provides information on the findings from its supervisory activities in the area of cyber risks and draws attention to shortcomings it has identified repeatedly.
FINMA is also providing further details on the requirements for reporting cyber attacks and conducting scenario-based cyber exercises.
20 March 2024
L-QUIF: new fund category exempt from FINMA authorisation and supervision
On 1 March 2024, the Swiss parliament and Federal Council have launched a new category of fund, the Limited Qualified Investor Fund (L-QIF).
L-QIFs are collective investment schemes that do not require FINMA authorisation or approval and are not supervised by FINMA.
They are offered solely to qualified investors and managed by entities that are supervised by FINMA. These institutions are responsible for complying with the L-QIF rules themselves.
FINMA News from 23.02.2024
Federal Council press release from 31.01.2024
5 February 2024
New FINMA Guidance: status of the licensing process and supervision for portfolio managers and trustees
In February 2024, the Swiss Financial Market Supervisory Authority published a new Guidance.
In its Guidance 01/2024, FINMA provides information on the status of the licensing process and on supervision for portfolio managers and trustees.
FINMA also reports that from now on trustees will be deemed to be operating on a commercial basis and require a licence if the trust assets exceed CHF 5 million at any time, because trust assets are economically separate from the trustee, i.e. they are assets belonging to third parties.
30 December 2023
New FINMA Guidance: staking services
Staking involves a number of risks and legal uncertainties.
In December 2023, the Swiss Financial Market Supervisory Authority published a new Guidance on staking services which sets out FINMA’s supervisory practice and is intended to enhance transparency about the treatment of staking services under financial market law.
The focus is on protecting customers from the risk of the staking service provider falling into bankruptcy.
22 November 2023
FINMA Risk Monitor 2023: current risks in the financial sector
On 9 November 2023, the Swiss Financial Market Supervisory Authority FINMA published its 2023 Risk Monitor, in which it identifies nine significant risks for the financial sector.
Compared to last year, the Risk Monitor presents two new risks, which relate to liquidity and funding as well as to the outsourcing of business activities.
The following risks already existed last year: interest rate risks, credit risks relating to mortgages, credit risks relating to other credits, credit spread risks, cybersecurity risks, risks relating to the combating of money laundering as well as risks relating to a difficult cross-border market access.
We recommend to include these risks in the yearly risk assessment.
22 November 2023
Money laundering risk analysis: new FINMA guidance
In August 2023, the Swiss Financial Market Supervisory Authority published guidance on the money laundering risk analysis setting out its observations and experiences gained in this field.
The money laundering risk analysis is an important tool for the strategic management of banks and other financial intermediaries. During on-site supervisory reviews, FINMA had repeatedly identified shortcomings in the area of the money laundering risk analysis.
During our SO audits, we also found out that the concept of money laundering risk analysis is often not correctly understood or applied.
We recommend to the financial intermediaries who are subject to the FinIA to follow FINMA’s basic structure.
20 October 2022
Anti-Money Laundering Act (AMLA) – changes on 01.01.2023
Due to the amendments to the Anti-Money Laundering Act adopted on 19 March 2021, the required adjustments have also to be done at the ordinance level. The changes, which concern in particular the AMLO-FINMA, enter into force on 1 January 2023.
These are the three major changes:
Verification of the identity of the beneficial owner
In its mutual evaluation report on Switzerland, FATF criticises the lack of an explicit legal foundation and thus of a general obligation to do a systematic material control. Art. 4, para. 1 rev. AMLA provides now that the financial intermediary must identify the beneficial owner with the due diligence required in the circumstances.
Updating of client data
In accordance with Art. 7, para. 1bis rev. AMLA, the financial intermediary must now periodically review the necessary documents and update them if needed. This obligation applies to all business relationships and irrespectively of their risk. On the other hand, the periodicity, scale and type of the review and the update are different depending on the risk of the contracting party. The obligation to update the client data applies both to the verification of the identity of the customer pursuant to Art. 3 AMLA and to the establishment of the identity of the beneficial owner pursuant to Art. 4 AMLA, but also to the more general review of the client profile, e.g. of the information on the nature and purpose of the business relationship.
Changes related to the reporting system
The revision of the AMLA also includes certain amendments to the reporting system. Art. 9, para. 1quater rev. AMLA newly defines the reasonable suspicion. If, according to the financial intermediary, there is a clear indication or there is some evidence that assets are the proceeds of a predicate offence to money laundering, he must pursue the matter and conduct detailed clarifications pursuant to Art. 6 AMLA. If it is not possible to dispel the suspicion, it is considered reasonable in accordance with respective applicable legal practice and must be reported to the Money Laundering Reporting Office Switzerland (MROS).
We recommend you prepare on time the instruction for the AMLA sector and put the updated version into force on 1 January 2023.
Don’t hesitate to contact us if you have any questions.
9 May 2022
Submission of the FINMA licence application: important next steps
On 4 May 2022, FINMA has published a «timetable for the licensing process» setting out the most important milestones in the process for obtaining a licence as a portfolio manager or trustee in new guidance:
FINMA Guidance 01/2022 of 4 May 2022
1st December 2020
We have moved!
Since 1st December 2020, our offices are located at the following address: Hohlstrasse 560, 8048 Zurich.
30 October 2020
Period to be entered in a register of advisers (important for distributors and independent financial advisors)
Pursuant to Article 28, Paragraph 1 FinSA, client advisers of Swiss financial service providers not subject to financial market supervision as well as client advisers of foreign financial service providers may carry out their activity only if they are entered in a register of advisers by 19 January 2021. The list of registration bodies licensed by FINMA can be found on the FINMA website.
Period to affiliate to an ombudsman’s office (mandatory for asset managers)
Pursuant to the FinSA, asset managers must affiliate to an ombudsman’s office within six months after the first ombudsman’s office’s authorisation. The period to affiliate ends on 24 December 2020.
The list of ombudsmen recognised by the Federal Finance Department can be found here:
https://www.efd.admin.ch/efd/de/home/das-efd/ombudstelle-nach-fidleg.html
In case of any question, do not hesitate to contact your local contact.
6 February 2020
The Financial Services Act (FinSA) and the Financial Institutions Act (FinIA) and its associated ordinances (FinSO and FinIO) became effective on January 1, 2020.
Please find attached our informations about the impact of these new requirements and our way to support you in this matter.
Informations FinSA/FinIA January 2020
8 November 2018:
The consultation on the ordinances to the Financial Services Act (FinSA) and the Financial Institutions Act (FinIA) were published on 24 October 2018. We have listed the main implementing provisions for FinSA / FinIA newly included in the current consultation draft in this overview. Please do not hesitate to contact us for any questions relating to FinSA and FinIA.
20 September 2018
Our new website is online! Do you like it? We are looking forward to receiving your comments and feedback!
24 October 2018:
The Swiss Federal Council is expected to publish its ordinance on FinSA and FinIA on 24 October 2018. We eagerly await the ordinance and will summarise its key points in the news section of this website.