You have got a problem with your portfolio manager or trustee

Do portfolio managers or trustees require a licence?

Since the FinIA entered into force at the start of 2020, portfolio managers and trustees have required a licence, which is issued by FINMA. A supervisory organisation (SO) authorised and supervised by FINMA is subsequently responsible for supervising the portfolio managers and trustees.

A portfolio manager is someone who, in compliance with rules, manages financial assets on behalf of a client. Trustees dispose of a separate fund for the benefit of a beneficiary or for a specified purpose based on the instrument creating a trust.

Portfolio managers and trustees can continue to perform their activity without a licence during a transitional period. However, this only applies to institutions that submitted a licence application to FINMA by the beginning of 2023 and are affiliated to a self-regulatory organisation (SRO).

Anyone who manages assets of collective investment schemes or occupational pension schemes requires a licence as a manager of collective assets from FINMA. FINMA supervises these financial institutions.

What will FINMA do if I complain about my portfolio manager or trustee?

FINMA will contact the supervisory organisation (SO) to clarify whether the portfolio manager or trustee has complied with the statutory provisions. If this is not the case, the SO responsible for supervision will take initial measures to restore compliance. Depending on the severity of the case, FINMA can also withdraw the licence. If you have problems with your portfolio manager or trustee, you can also file your complaint directly with the competent SO.

Will I find out what the SO or FINMA thinks about my complaint?

No. You will not be given an insight into investigations carried out by the SO or by FINMA in relation to private enquiries or complaints submitted. The petition for administrative review is not a formal legal remedy and therefore does not give you the rights of a party. In matters like this, we are bound by the Administrative Procedure Act.

Why is the SO or FINMA interested in my case?

Complaints provide the SO or FINMA with important indications of possible misconduct by portfolio managers and trustees. Thanks to such indications, the SO or FINMA with the SO’s involvement can investigate whether the portfolio manager or trustee has complied with the statutory provisions and, where necessary, can take measures to ensure that they behave correctly in the future.

Can FINMA help me directly?

We cannot help you enforce claims under civil law. However, every portfolio manager must be affiliated to an ombudsman. They should settle disputes regarding legal claims between the client and the financial service provider in mediation proceedings. The ombudsmen are not mandatory for trustees.

If the ombudsman does not mediate or if this has no prospect of success, the only possibility that remains for enforcing claims under civil law is recourse to the competent civil courts.