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
- Since 2020, wealth managers have needed a FINMA licence under the Financial Institutions Act (FinIA), Art. 17 et seq. Those already active before 2020 had until the end of 2022 to meet the requirements and submit their application. In special cases, FINMA could extend the deadline (FinIA Art. 74 para. 2 and 4).
- Unlike Investment Advice, the manager acts on a discretionary basis: they decide and trade without individual client approval.
- 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
Financial Advice
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.