As part of its supervisory remit, FINMA monitors whether the following CISA licence holders meet the relevant legal, contractual, statutory and regulatory requirements:
Distributors of collective investment schemes are not subject to ongoing prudential supervision by FINMA.
FINMA monitors whether Swiss collective investment schemes comply with the specifications set out in their fund contract and prospectus. FINMA's assessment is based on an annual audit of the company's financial statements and prospectus by an audit company. In addition to these audits, FINMA also conducts its own periodic case-related audits, but it does not review the appropriateness of business decisions taken by licence holders (Art. 132 para. 2 CISA).
If investors suffer losses due to a breach of a contractual or statutory obligation, a claim for compensation can be asserted (Art. 145 CISA). This entitlement is of a contractual and not regulatory nature. Thus, FINMA cannot initiate proceedings and is not responsible for the civil law component of losses suffered by investors. However, within the scope of supervisory law and in cooperation with the auditors, FINMA ensures that the investor’s entitlement to information is upheld. Civil courts are ultimately responsible for assessing the facts of each case.
Essentially, these products are supervised by the responsible authority in their country of origin. Representatives of foreign collective investment schemes who are located in Switzerland and authorised by FINMA are responsible for complying with the statutory provisions governing these schemes.