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Glossary

Guarantee of Irreproachable Conduct

Guarantee of Irreproachable Conduct is a licensing requirement under FinIA. The guarantee must be provided by the financial institution itself and by the persons responsible for its administration and management. These persons must also enjoy a good reputation and have the required professional qualifications. Anyone holding a qualified participation in the institution must likewise enjoy a good reputation.

At a glance

  • A qualified participant is anyone who directly or indirectly holds at least 10 percent of the share capital or voting rights, or can significantly influence the institution's business activity in another way (FinIA Art. 11 para. 4).
  • A FINMA licence (FinIA Art. 5) requires that the institution and the persons responsible for its administration and management provide the guarantee of irreproachable conduct (FinIA Art. 11).
  • If the facts on which the licence is based change, the financial institution must notify FINMA. For material changes, it must obtain FINMA's approval before continuing its activity (FinIA Art. 8 para. 1 and 2).

Frequently asked questions

Art. 11 FinIA does not contain a list of grounds for exclusion. It requires the institution and the persons responsible for its administration and management to provide a guarantee of irreproachable business conduct. Those persons must also have a good reputation and the professional qualifications their role requires. FINMA assesses on a case-by-case basis whether these requirements are met.

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.