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Compliance Corner: FINMA

Editorial Staff, 29 October 2020

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The latest compliance news: regulatory developments, punishments, guidance, permissions and new product and service offerings.

FINMA, the Swiss financial regulator, said yesterday that it has completed its preparations for two major pieces of legislation designed to oversee fund managers, trustees, client advisors and other industry groups. Swiss authorities are rolling out a series of industry regulations covering sectors including external asset managers.

The watchdog said it has completed its preparations for putting the Financial Institutions Act (FinIA) and Financial Services Act (FinSA) into force.

FINMA announced yesterday that it has licensed a fifth supervisory organisation and authorised a third registration body. It has licensed the Schweizerische Aktiengesellschaft für Aufsicht – to give its full name - as the fifth supervisory organisation. FINMA also gave the green light to PolyReg Services, based in Zurich, as a registration body for client advisors. 

The regulator said it has no other pending applicants wishing to become supervisory organisations (SO).

FINMA has licensed 11 portfolio managers to date; portfolio managers and trustees must apply for a licence from FINMA by the end of 2022, which includes proving that they are affiliated to a supervisory organisation. They can continue to operate until a licensing decision has been made, provided that they are also affiliated to a self-regulatory organisation. 

Portfolio managers and trustees who start operating in 2020 must register with FINMA without delay. They must be affiliated to an SO by 6 July 2021 at the latest and submit a licence application.

With regard to client advisors, a total of three registration bodies keep registers of advisors. Client advisors of financial service providers, which are not subject to prudential supervision, must register by 20 January 2021. 

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