FinTech financial services providers
FINMA has been working on the challenges presented by FinTech regarding authorisation, supervision and regulation. Innovative trends and ideas require a solid framework within which to operate, while clients and the financial system as a whole need protection during this shift in direction.
FinTech-friendly environment set in motion
An increasing number of financial intermediaries interact with their clients via internet and mobile devices. FINMA has therefore been enhancing the regulatory framework to facilitate client onboarding via digital channels. In its circular, the anti-money laundering due diligence requirements are explained in the context of digitalisation of financial services and the need for technology-neutral regulation, particularly with respect to video identification. The circular came into force on 18 March 2016 and was updated on 6 May 2021.
Opening corporate accounts for blockchain companies
On 21 September 2018, the Swiss Bankers Association published guidelines for its members on opening corporate accounts for blockchain companies. The FDF and FINMA support the initiative and publication of the guidelines by the Bankers Association.
Regulatory landscape
Before launching operations, FinTech companies must establish whether they are subject to anti-money laundering and authorisation requirements.
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Anti-money laundering
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You are most likely subject to the Anti-Money Laundering Act if
- client assets are paid into your accounts;
- payment transactions, currency exchange, fiduciary services, asset management lending and leasing, and issuing payment instruments are part of your business model.
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Authorisation requirements
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You require FINMA authorisation if
- acceptance of client assets features in your advertising;
- client assets are paid into your accounts;
- the number of clients whose deposits or cryptobased assets you accept is over twenty;
- managing units in collective investment schemes and advertising this service are part of your business model;
- trading shares and other securities, as well as
- brokering insurance products and insuring client risks feature in the services you offer.
Must I comply with the anti-money laundering due diligence requirements?
Accepting assets or providing assistance in the investment and transfer of assets are subject to the rules set out in the Anti-Money Laundering Act. This includes credit and leasing transactions, asset management, providing wallet services, fiduciary activities, payment service providers and money exchangers. Trading with virtual currencies (Bitcoin, etc.) and operating a payment system fall under the Anti-Money Laundering Act (AMLA). If the business you do is subject to the AMLA, you must become a member of a self-regulatory organisation (SRO).
For further information, see:
Do the FinTech services I provide require authorisation?
If you intend entering the financial market, the financial services you wish to provide may require FINMA authorisation. Individuals and legal entities must apply to FINMA to obtain authorisation for certain activities and, in some cases, for specific products. In addition to other institutions, FINMA authorises and supervises banks, securities firms, insurances, fund management companies, collective investment schemes, exchanges and multilateral trading systems.
Do I need ...
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... a banking or FinTech licence?
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Yes, a banking licence if: No, if: - You accept deposits from more than twenty clients.
- Client assets are paid into your accounts.
- Acceptance of client assets features in your advertising.
- You accept client assets, but have a bank guarantee to cover this amount.
- You accept a maximum of CHF 3000 per person with which clients can explicitly buy products and services.
- You accept client assets by issuing bonds in line with the statutory requirements set out in an issuing prospectus.
- You accept cryptobased assets, but store each client's assets on individual blockchain addresses.
Yes, a FinTech licence if: - You accept client deposits up to a maximum of CHF 100 million or take collective custody of cryptobased assets.
- Such deposits are not invested and neither is interest paid on them.
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... a licence as a securities firm?
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Yes, if: No, if: - You buy and sell shares and other securities for clients.
- You buy securities to re-sell in the short-term which generates a turnover of CHF 5 billion or more a year.
- You buy and sell shares and other securities to manage your own assets.
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… a licence as a DLT trading facility?
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Yes, if: - You operate a facility for DLT securites trading.
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... authorisation to provide insurance?
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Yes, if: No, if: - You insure risks and dangers for clients.
- You render services voluntarily and without any contractual obligation.
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Must I register as an insurance intermediary?
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Yes, if: No, if: - You broker insurance contracts.
- You represent an authorised insurance company when you broker insurance contracts
International cooperation on FinTech
FINMA promotes Swiss FinTech interests at a global level, namely by actively engaging in a number of international bodies to work towards establishing a solid framework for innovation and proper protection for customers and the financial system. Bilateral cooperation with national authorities worldwide also exists on FinTech topics, which enables FINMA to conclude Memoranda of Understanding (MoU) with those authorities. This also supports Swiss FinTech companies to expand operations outside their home market.
FinTech roundtable
FINMA frequently organises FinTech roundtable events. The dates and topics will be posted on this web page.
Do you have any questions?
You can reach us at fintech@finma.ch or +41 31 327 16 16 (Monday to Friday: 08.00 – 12.00).
