Supervision of supervisory organisations

Supervisory organisations must permanently comply with various licensing requirements regarding independence and guarantee of irreproachable business conduct, organisation and governance, and staff qualifications and resources. The SOs must also meet minimum financial requirements. FINMA reviews and approves changes to circumstances integral to the licensing process.

Risk-oriented supervision

FINMA conducts risk-oriented supervision of the SOs. It checks whether the SOs supervise compliance with legal requirements by portfolio managers and trustees. FINMA conducts a risk analysis of the SOs once annually with particular emphasis on the business, risk and supervisory policy. The SO organisation, structure of the audit system and the personnel and financial aspects of the SO are also included. The risk analysis by the SO determines the choice and intensity of the supervisory tools used by FINMA in each case.

Supervisory instruments

FINMA conducts on-site supervisory reviews as well as regular bilateral supervisory interviews and analyses the SO annual reports. The SOs also receive an annual assessment report covering any weak points and areas requiring further action.