FIDLEG Compliance 2025: New rules of conduct and practical implementation
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FinIA / FinSA & Compliance
FinIA and FinSA are the two acts that have governed the profession of the independent wealth manager in Switzerland since 2020. The Financial Institutions Act (FinIA) makes the activity subject to authorisation and places wealth managers under ongoing supervision by a supervisory organisation approved by FINMA. The Financial Services Act (FinSA) sets out the rules of conduct towards clients, from information and due diligence to the appropriateness and suitability assessments.
The essentials
01
Anyone managing third-party assets on a commercial basis in Switzerland needs authorisation from FINMA and must affiliate with a supervisory organisation approved by FINMA, which carries out the ongoing supervision (art. 17 FinIA; art. 43a FINMASA).
02
Wealth managers must hold adequate own funds at all times: at least one quarter of the fixed costs in the last annual financial statements, but no more than ten million francs (art. 23 FinIA).
03
FinSA requires financial service providers to observe rules of conduct towards clients, including duties of information, due diligence and transparency, as well as the suitability or appropriateness assessment before providing a service (art. 7 to 18 FinSA).
04
Client advisers of financial service providers that are not prudentially supervised must enter the adviser register if they do not serve professional or institutional clients exclusively; providers serving retail clients also affiliate with a recognised ombudsman (art. 28 FinSA).
Sources: FINMA · fedlex
Frequently asked questions about FinIA / FinSA & Compliance
Yes. Since the Financial Institutions Act of 2020, managing third-party assets on a commercial basis requires authorisation. FINMA grants the authorisation, while a supervisory organisation approved by FINMA carries out the ongoing supervision. The wealth manager must also mandate an audit firm or be audited by the supervisory organisation itself.
FinIA governs the institutional side: authorisation, organisation, own funds and supervision of the financial institution. FinSA governs conduct towards clients: information, due diligence, transparency and the suitability and appropriateness assessments. A wealth manager must comply with both acts, as they cover different sets of duties.
The supervisory organisation monitors on an ongoing basis whether the wealth manager complies with the duties under FinIA, FinSA and the Anti-Money Laundering Act. It reviews organisation, risk management, own funds and rules of conduct in particular. The review is risk-based and does not necessarily take place every year. In years without a periodic audit, the wealth manager submits a report.
The adviser register mainly concerns client advisers of financial service providers that are not under prudential supervision. A FINMA-authorised wealth manager is supervised by a supervisory organisation, so its client advisers generally are not required to register. The specific obligation should be assessed case by case.
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