Client segmentation according to FinSA

Similar to MiFID II, art. 4 para. 1 of the new Financial Services Act (FinSA) stipulates that all financial service providers under FinSA, including asset managers, have to classify their clients, for whom they provide financial services, such as investment advice or asset management, as follows:

  1. Private clients
  2. Professional clients
  3. Institutional clients (subgroup of professional clients)

The table below provides an overview of the client categorization under FinSA.

Risk Management and Compliance of Swiss Asset Managers according to FinIA

Pursuant to art. 2 para. 1 of the new Financial Institutions Act (FinIA), asset managers who are currently "only" subject to the Ant Money Laundering Act (AMLA) will be deemed to be financial institutions which, on the basis of art. 5 para. 1 FinIA, require a licence from FINMA and, on the basis of art. 7 para. 2 FinIA, are supervised by a supervisory organisation. In addition, based on art. 7 para. 1 FinIA, they must also fulfill the general requirements set out in section 2 of FinIA (i.e. art. 5 - 16 FinIA) and the specific requirements for asset managers (i.e. art. 17 - 23 FinIA).

From Distribution to the Offer of Collective Investment Schemes under the Financial Services Act

The Financial Services Act (FSA) brings a major change with regard to collective investment schemes: the previous concept of distribution of collective investment schemes (CIS) will be replaced by the concept of the offer of CIS. This FIDLEG SOLUTION News explains exactly what this change will mean.

It is important to know that the concept of the offer does not only apply to CIS. Rather, it applies to all financial instruments.

The show goes on - the criminal side of retrocessions

In issues 11/2018 and 12/2019 we have discussed the regulatory aspects of retrocessions according to MiFID II / MIFIR (here) and FinSA (here). In addition, we also took a look at the civil law aspects. However, this does not mean that the story of retrocessions is over, quite the opposite. Rather, at the end of 2018 it was extended by a significant chapter. In a new, groundbreaking decision, the Swiss Federal Supreme Court also looked at retrocessions from a criminal law point of view – very much to the detriment of the recipients of retrocessions.

Rules for retrocessions under the Financial Services Act (FinSA)

This issue of FIDLEG SOLUTION - News 12/2018 brings closer to you the provisions of FinSA on retrocessions and compares them with the provisions of MiFID II / MIFIR as presented in the last issue of FIDLEG SOLUTION - News 11/2018. It also takes a look at the civil law provisions, the case law and the self-regulation currently in force.

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