Monitoring portfolio managers and trustees

FINMA is responsible for licensing portfolio managers and trustees. However, a supervisory organisation (SO) is responsible for ongoing supervision. Portfolio managers and trustees subject to consolidated supervision by FINMA are exempt. The SO are licensed and supervised by FINMA. They are not a government agency.

Supervisory instruments available to the SO

The SO have various supervisory instruments. They may notably give members a deadline by which to make improvements if they identify failings. If the portfolio manager or trustee fails to meet the deadline, the SO must inform FINMA accordingly without delay.

Case-related supervision by FINMA

FINMA intervenes in the supervisory organisation's supervisory remit when necessary to enforce financial market laws. If there are indications of malpractice and the SO fails to restore compliance, FINMA may audit the portfolio manager or trustee, appoint an audit mandatary or apply other supervisory instruments.

FINMA is responsible for legal enforcement

FINMA is invariably responsible for enforcing financial market law. Only FINMA can make legally enforceable decisions or draw legally binding conclusions. As a result, FINMA can initiate measures against portfolio managers and trustees culminating in licence withdrawal.