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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 checks whether the applicant meets the membership conditions required under FinIA.

At a glance

  • The supervisory organisation reviews the business model, organisation, internal regulations and capital evidence against the statutory licensing requirements under FinIA; its supervisory function is based on FINMASA Art. 43a et seq.
  • Only after a positive affiliation decision does the Supervisory Organisation forward the documentation to FINMA.
  • 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 · Classified Compilation (fedlex)

This entry is for general information purposes only and does not constitute investment, legal or tax advice. It is a simplified summary of the legal position and tax treatment.