Information on the FinIA

A portfolio manager is a person mandated to manage assets on a commercial basis in the name of and on behalf of clients or who may dispose of clients' assets in any other manner (Art. 17 FinIA). Portfolio managers manage individual portfolios.

Managers of collective assets who manage the assets of collective investment schemes or occupational pension schemes below the defined thresholds (see Art. 24 para. 2 FinIA) are deemed to be portfolio managers.

A trustee is a person who on a commercial basis manages or disposes of a separate fund for the benefit of a beneficiary or for a specified purpose based on a restricted grant given namely in the instrument creating a trust within the meaning of the Hague Convention of 1 July 1985 on the Law Applicable to Trusts and on Their Recognition. The trustee manages the separate fund, ensures its value is maintained and employs it in a restricted manner.

Portfolio managers and trustees must be authorised by FINMA.

PMs and trustees who will now be subject to the requirement for authorisation must report to FINMA within six months of the FinIA's entry into force. They must then meet the statutory requirements within three years of the legislation's entry into force and submit a request for authorisation. They can continue to operate until a decision is reached regarding their authorisation, provided that they are affiliated to an SRO, as defined in Article 24 of the Federal Act on Combating Money Laundering and Terrorist Financing (AMLA), and are supervised by this SRO in relation to compliance with the relevant requirements.

PMs and trustees commencing operations within one year of the FinIA's entry into force must report to FINMA without delay and must meet the conditions for authorisation from the date on which they commence operations, irrespective of the requirement to affiliate to an SO. No later than one year after FINMA has approved an SO, they must affiliate to such an SO and submit a request for authorisation. They can continue to operate until a decision is reached regarding their authorisation, provided that they are affiliated to an SRO, as defined in Article 24 AMLA, and are supervised by this SRO in relation to compliance with the relevant requirements.

No. In the course of its discussions, Parliament rejected the "grandfathering” provision (i.e. the possibility of making exceptions to the authorisation requirement for portfolio managers who have already been established for many years).

Trade assayers who themselves or through a group company trade on a commercial basis in banking precious metals require authorisation from FINMA. If a company trades in banking precious metals of a trade assayer belonging to its group company, it also requires authorisation.

The provisions on the authorisation conditions for portfolio managers apply by analogy to trade assayers (see Art. 42^bis para. 3 PMCA).

Trade assayers who will now be subject to the requirement for authorisation must report to FINMA within six months of the entry into force of the amendment of the PMCA. They must meet its statutory requirements within two years of its entry into force and submit a request for authorisation. They can continue to operate until a decision is reached regarding their authorisation.

To date, managers of the assets of collective investment schemes have been authorised and supervised by FINMA as asset managers of collective investment schemes under the Collective Investment Schemes Act (CISA). These institutions do not require any new authorisation. They must, however, meet the requirements of the legislation within one year of its entry into force.

Managers of the assets of collective investment schemes who have not previously been subject to the CISA because they did not reach the thresholds specified in the CISA will now have to be authorised by FINMA as portfolio managers or PMs (see Art. 24 para. 2 let. a FinIA).

They must report to FINMA within six months of the entry into force of this legislation. They must meet its statutory requirements within three years of its entry into force and submit a request for authorisation. They can continue to operate until a decision is reached on their authorisation, provided that they are affiliated to an SRO, as defined in Article 24 AMLA, and are supervised by this SRO in relation to compliance with the relevant requirements.

Portfolio managers of occupational pension schemes who were previously authorised by the OPSC will now require authorisation from FINMA as managers of collective assets provided that they manage occupational pension scheme assets of more than 100 million francs or manage more than 20% of the assets of an individual occupational pension scheme (see Art. 24 para. 2 let. b FinIA).

If these portfolio managers manage occupational pension scheme assets amounting to no more than 100 million francs and no more than 20% of the assets of an individual occupational pension scheme (see Art. 24 para. 2 let. b FinIA), they will now require authorisation from FINMA as portfolio managers or PMs.

All managers of occupational pension scheme assets must report to FINMA within six months of the entry into force of this legislation. They must meet its statutory requirements within three years of its entry into force and submit a request for authorisation. They can continue to operate until a decision is reached on their authorisation, provided that they are affiliated to an SRO, as defined in Article 24 AMLA, and are supervised by this SRO in relation to compliance with the relevant requirements.

The category of directly subordinated financial intermediaries (DSFIs), as defined in Article 2 para. 2 AMLA, will cease to exist following an amendment to the AMLA resulting from the FinIA.

DSFIs which are operating as asset managers, trustees or trade assayers when the FinIA enters into force will require a corresponding authorisation. They should also note the above-mentioned transitional provisions in the sections entitled “PMs / trustees” or “Trade assayers”.

DSFIs which are operating as neither asset managers nor trustees or trade assayers when the amended legislation enters into force will have to affiliate to a recognised SRO. They must submit the corresponding request within one year. They can continue to operate until a decision is reached regarding their authorisation.

Institutions which are already authorised as securities dealers (as defined in Art. 2 let. d SESTA) when the FinIA enters into force will not require any new authorisation as investment firms. They must, however, meet the requirements of the FinIA within one year of its entry into force.

Institutions which are already authorised as fund management companies (as defined in Art. 13 para. 2 let. a CISA) when the FinIA enters into force will not require any new authorisation. They must, however, meet the requirements of the FinIA within one year of its entry into force.

The provisions relating to distributors of collective investment schemes in the CISA will be deleted in their entirety. Once the FinIA enters into force, the corresponding authorised entities will no longer be subject to supervision by FINMA. Distributors, like all other financial service providers, will have to comply with the new code of conduct provisions as set out in FinSA and may also have to add their names as client advisers to an adviser register.