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Glossary

Discretionary Asset Management

Discretionary Asset Management means that a FINMA-licensed wealth manager takes investment decisions independently within an individual mandate, without consulting the client on each transaction. The client delegates decision-making authority and receives regular reports on their portfolio.

At a glance

01

Wealth managers have required a FINMA licence under FinIA (Financial Institutions Act) (Art. 17 ff.) since 2020; the transitional periods ran until end of 2024.

02

Unlike Investment Advice, the manager acts on a discretionary basis: they decide and trade without individual client approval.

03

Clients may specify Investment Guidelines in the management agreement (for example, exclusions or risk budgets) to define the scope of discretion.

Frequently asked questions

With Investment Advice, an adviser recommends specific measures but the client decides and acts. With Discretionary Asset Management, the client delegates decision-making authority to the manager by mandate. The manager acts independently within the agreed framework and is bound by duties of care and loyalty under FinSA and FinIA (Financial Institutions Act).

Part of the topic

Finanzberatung

Sources: FINMA · Systematische Rechtssammlung (fedlex)