FINMA, the Swiss Financial Market Supervisory Authority, has licensed a fifth supervisory organisation and authorised a third registration body, the last step towards establishing the institutional conditions for the implementation of the Financial Institutions Act and the Financial Services Act.

FINMA has therefore completed its preparatory tasks on schedule.

FINMA has licensed the Schweizerische Aktiengesellschaft für Aufsicht AOOS with effect from 27 October as the fifth supervisory organisation (SO). AOOS gained recognition at the same time as a self-regulatory organisation (SRO) in accordance with the Anti-Money Laundering Act (AMLA). On 19 October, FINMA authorised PolyReg Services GmbH based in Zurich as a registration body for client advisors. PolyReg is the third "registration body" to be set up pursuant to FinSA. All institutional conditions have therefore been met for the implementation of FinIA (whose abbreviation in German is FIDLEG) and FinSA (FINIG).

FINMA has no further pending authorisation applications for SO, registration bodies or reviewing bodies for prospecti. This phase of the establishment of necessary institutions was thus completed on schedule, enabling portfolio managers, trustees and independent client advisors to fulfil their licensing and registration obligations under FinIA and FinSA in time.

Differing transitional deadlines

The deadlines for implementing FinIA and FinSA differ according to each financial service provider’s activity. Let us look at those activities in turn.

Portfolio managers and trustees. There are now five supervisory organisations for their supervision:

• AOOS - Schweizerische Aktiengesellschaft für Aufsicht (in Zurich);
• FINcontrol Suisse AG (in Zug);
• the Organisme de Surveillance des Instituts Financiers or OSIF (in Geneva);
• OSFIN, the Organisation de surveillance financière (in Neuchâtel); and
• SO-FIT, the Organisme de Surveillance pour Intermédiaires Financiers & Trustees en formation (in Geneva).

FINMA has licensed 11 portfolio managers to date, which belong to a financial group that it supervises. Every portfolio manager or trustee must apply to it for a licence by the end of 2022. In doing so, it must prove that it is affiliated to an SO. It may continue to operate until FINMA has decided whether or not to license it, as long as it is also affiliated to a self-regulatory organisation. Any portfolio manager or trustee which starts operating in 2020 must register with FINMA without delay. It must be affiliated to an SO by 6 July 2021 at the latest and must apply for a licence.

Client advisors. FinSA states that client advisors of financial service providers which are not subject to prudential supervision in Switzerland must now sign up to a register of advisors by 20 January 2021. The registering body manages the register and checks to see whether the client advisors have completed the necessary training and further education. The registering bodies licensed by FINMA are:

• the Association Romande des Intermediaries Financiers or ARIF (in Geneva - see https://www.arif);
• chBX Swiss AG (in Zurich - see https://www.regservices.ch); and
• PolyReg Services GmbH (in Zurich - see https://www.reg-fix.ch).

Prospectus review. Participants in financial markets - including Swiss banks - have two reviewing bodies to choose from regarding the review of prospecti prior to publication. These are BX Swiss AG (see http://www.regservices.ch) and SIX Exchange Regulation AG (http://www.ser-ag.com). Both are located in Zurich.

From 2 December onwards, anyone in Switzerland who makes a public offer for the acquisition of securities or any person who seeks the admission of securities to trading on a trading venue in accordance with Article 26 FINIA must first publish a prospectus in accordance with Article 35 FinSA. The prospectus must have been approved by a reviewing body authorised by FINMA.

FINMA is responsible for authorising registration and reviewing bodies, but not for their supervision.

FinIA and FinSA - a new supervisory architecture

FinIA and FinSA will change the supervision of Swiss portfolio managers and trustees and the registration of Swiss independent client advisors. Portfolio managers and trustees now require a licence from FINMA. The independent supervisory organisations will monitor compliance with the dictates of FinIA, FinSA and the Anti-Money-Laundering Act. FINMA will license and supervise the supervisory organisations. FINMA is responsible for enforcing financial market law in the event of non-compliance.