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Glossary

Securities Firm Delineation

Securities Firm Delineation refers to the regulatory boundary between an independent asset manager and a securities firm (formerly securities dealer) under FinIA. The key criterion is whether the institution acts on its own account or invests client assets solely in the client's name, which triggers different licensing requirements and Capital Requirements.

At a glance

01

Securities firms under FinIA Art. 41 et seq. are subject to significantly stricter capital adequacy and organisational requirements than independent asset managers.

02

If a wealth manager systematically acts on its own account, it may fall into the securities firm category (FinIA Art. 41).

03

FINMA determines the classification based on actual business activities; in cases of doubt, a formal enquiry to FINMA is advisable.

Frequently asked questions

The distinguishing criterion is acting on one's own account: if you invest client assets exclusively in the client's name and on the client's account, and do not engage in proprietary trading, you will be classified as a wealth manager. Where uncertainty exists, a request for a formal ruling from FINMA is recommended before the business model is put into operation.

Sources: FINMA · Systematische Rechtssammlung (fedlex)