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Glossary

Client Segmentation (FinSA)

Client Segmentation (FinSA) divides clients into three segments: private clients (highest protection), professional clients, and institutional clients (reduced requirements). The classification determines which information, assessment, and documentation duties a financial services provider must meet towards the client.

At a glance

01

Professional clients include supervised financial intermediaries, insurance companies, public-law entities, and large undertakings, among others (Art. 4 para. 3 FinSA).

02

Private clients may, at their own request, switch to the professional client segment (opting out) if they meet certain wealth and experience criteria (Art. 5 FinSA).

03

Institutional clients (for example, national banks or pension institutions with professional treasury) have the least regulatory protection.

Frequently asked questions

Yes. Private clients may opt out to become professional clients if they meet defined criteria regarding wealth, knowledge, and experience. This step reduces the regulatory protection duties of the service provider and should therefore be considered carefully (Art. 5 FinSA).

Part of the topic

Finanzberatung

Sources: FINMA · Systematische Rechtssammlung (fedlex)