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Glossary

Affiliation Audit

Affiliation Audit is the initial regulatory review conducted by a recognised Supervisory Organisation when a new member joins, before it forwards the licensing application to FINMA. It verifies that the applicant meets the membership conditions required under FinIA.

At a glance

01

The supervisory organisation reviews the business model, organisation, internal regulations and capital evidence against the statutory licensing requirements under FINIG; its supervisory function is based on FINMAG Art. 43a et seq.

02

Only after a positive affiliation decision does the Supervisory Organisation forward the documentation to FINMA.

03

A negative assessment prevents the FINMA Licence from being granted; the applicant may remedy deficiencies and reapply.

Frequently asked questions

The Supervisory Organisation examines whether the wealth manager has documented risk management, sufficient capital adequacy, an internal Compliance Function, and regulations covering organisation and conflicts of interest. Personal requirements, such as the qualifications and reputation of responsible persons, are also assessed.

Sources: FINMA · Systematische Rechtssammlung (fedlex)