Swiss Regulatory Update: Clarification of The Obligation To Register Client Advisors
Swiss investment fund providers are exempt from this obligation if:
- they are based in Switzerland and are supervised by FINMA.
- they are based abroad, are prudentially supervised in their jurisdiction, and are exclusively addressing institutional and professional investors.
The Swiss registries of client advisors have created a joint FAQ document, which has been acknowledged by FINMA, the Swiss financial services regulator. Within this document (Question 6) they clarify an important point on the above criteria regarding exemption.
Ombudsman:
Dec 24, 2020
Registration of client advisors: Jan 19, 2021
Full FinSA compliance:
Dec 31, 2021
‘Opting-Out’ for HNWI and Private Investment Structures
In Switzerland, HNWIs and private investment structures set up for them can “opt-out” of the private investor category and ask to be treated as professionals (when they are, however, not professional investors themselves).
Therefore, prudentially supervised foreign providers who offer financial products directly to such clients do not qualify for exemption.
If your client advisors offer financial products directly to “opting-out” HNWIs and private investment structures, you must register them in a Swiss registry of client advisors.
Waystone’s FinSA Compliance Solution Package
Our team of Swiss specialists are here to assist you with these measures together with other FinSA requirements (ombudsman affiliation, rules of conduct, organisational measures) through our comprehensive FinSA compliance solution package.