July 7, 2020 | AtoZ Markets – The Federal Financial Market Supervisory Authority FINMA grants OSIF and OSFIN the first authorizations as supervisory bodies which will be responsible for monitoring asset managers and trustees.
It also approved the first registration body for customer advisers. The Federal Department of Finance also recognizes the first mediation bodies according to the LSFin for financial service providers.
FINMA approves supervisions for asset managers, OSIF and OSFIN
Finma grants the Supervisory Body of Financial Institutes, headquartered in Geneva (OSIF), and the Financial Supervisory Organization, based in Neuchâtel (OSFIN), as a supervisory organization (SO) from July 6, 2020.
The two organizations submitted their requests to FINMA in January 2020. The SOs will now be responsible for the supervision of wealth managers and trustees. Finma is currently examining three other requests received from OS.
With the implementation of the law on financial institutions (LEFin) and that on financial services (LSFin), the supervision of asset managers and trustees is subject to new rules. Independent asset managers and trustees must now obtain authorization from FINMA .
They are also monitored by the SOs to verify that they fulfill their obligations under the LEFin, the LSFin and the Money Laundering Law (LBA). The SOs must also obtain authorization from Finma, which ensures their surveillance thereafter. In the event of irregularities, Finma is responsible for enforcing the law of the financial markets (enforcement).
2,206 asset managers and trustees are seeking authorization
Wealth managers and trustees must, by the end of 2022, request authorization from the FINMA. In addition, they must prove that they have an affiliation with a SO. They had until June 30, 2020, to announce themselves at FINMA. The latter received, until that date, announcements from 1934 wealth managers and 272 trustees interested in obtaining authorization.
Around 1,208 advertisements come from German-speaking Switzerland, 743 from Romandie, and 255 from Ticino. 273 asset managers and trustees have indicated that they want to apply for authorization already this year. 629 wealth managers and trustees have announced their authorization requests for 2021 and 1304 for 2022. 121 establishments have indicated to FINMA that they will not file an application because they give up their activity or integrate it with that of other establishments.
FINMA authorizes BX Swiss AG as the first registration body
Finma has also approved BX Swiss AG as the first registrar for customer advisers from 20 July 2020. Other registrars are expected to follow. The registration bodies manage the register of advisers, in accordance with the LSFin. Client advisers of financial service providers who are not supervised but provide their services in Switzerland must register.
The registration bodies verify that the advisers have the necessary training and professional development. FINMA is competent for the approval of these bodies, but not for their prudential supervision. The approval of the first registrar marks the start of a six-month transitional period. In fact, by January 19, 2021, the client advisers concerned must file a request for registration in a registry of advisers.
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