The Swiss Financial Market Supervisory Authority (FINMA)
has issued licenses to a substantial 950 portfolio managers and trustees. These
licenses are the culmination of 1,749 license applications received by FINMA as
of June 30, the regulator said in a statement.
The granted licenses
were categorized into two segments: 931 institutions, comprising 888 portfolio
managers and 43 trustees, and 10 additional institutions, one of which holds
both roles. According to FINMA, this growth in licensing is indicative of the
industry’s expansion. This surge also reportedly signifies a rising demand for
financial services, underscored by a notable 50 applications submitted since
the beginning of the year.
The process of obtaining
licenses for portfolio managers and trustees from FINMA is a systematic journey governed by
well-defined procedures. It encompasses multiple stages, starting with
self-registration and culminating in the issuance of licenses.
Central to FINMA’s
regulatory approach is its guidance, which sheds light on its supervisory
model. According to the information from the regulator’s website, this approach
focuses on risk-based monitoring, ensuring that the licensed portfolio managers
and trustees undergo diligent scrutiny proportional to their assessed risk
level.
In 2020, FINMA issued
the first licenses to Organisme de Surveillance des Institute Financiers (OSIF)
in Geneva and Organisation de Surveillance Financière (OSFIN) in Neuchâtel.
These licenses enable OSIF and OSFIN to take on roles as supervisory
organizations tasked with overseeing portfolio managers and trustees.
The granting of licenses
to OSIF and OSFIN by FINMA came in the wake of Switzerland’s enactment of the
Financial Institutions ACT (FinIA) and the Financial Services Act (FinSA).
Independent entities in these roles must secure authorization from FINMA,
ensuring they adhere to the regulatory
framework set by FinIA
and FinSA, as well as comply with anti-money laundering regulations.
Supervisory Oversight in
New Regulatory Landscape
In the past, FINMA has
issued a clarion call to asset managers and trustees, urging them to take
immediate action in accordance with the guidelines issued in 2022. The FINMA
guidance underscores a key
procedural aspect:
applicants are required to first submit their applications to a supervisory
organization for evaluation.
FINMA, entrusted with
reporting criminal offences, is empowered to relay cases related to
non-compliance to criminal prosecution authorities. Concurrently, FINMA
initiates its own
enforcement investigations.
Two days ago, FINMA
announced the signing of a cooperation agreement with the Italian supervisory
authority (CONSOB) and the Italian national bank, Banca d’Italia, Reuters
reported. One of the outcomes of the freshly-inked regulatory collaboration is
the provision of clearer legal certainty for institutions aiming to gain a
foothold in the Italian market.
The Swiss Financial Market Supervisory Authority (FINMA)
has issued licenses to a substantial 950 portfolio managers and trustees. These
licenses are the culmination of 1,749 license applications received by FINMA as
of June 30, the regulator said in a statement.
The granted licenses
were categorized into two segments: 931 institutions, comprising 888 portfolio
managers and 43 trustees, and 10 additional institutions, one of which holds
both roles. According to FINMA, this growth in licensing is indicative of the
industry’s expansion. This surge also reportedly signifies a rising demand for
financial services, underscored by a notable 50 applications submitted since
the beginning of the year.
The process of obtaining
licenses for portfolio managers and trustees from FINMA is a systematic journey governed by
well-defined procedures. It encompasses multiple stages, starting with
self-registration and culminating in the issuance of licenses.
Central to FINMA’s
regulatory approach is its guidance, which sheds light on its supervisory
model. According to the information from the regulator’s website, this approach
focuses on risk-based monitoring, ensuring that the licensed portfolio managers
and trustees undergo diligent scrutiny proportional to their assessed risk
level.
In 2020, FINMA issued
the first licenses to Organisme de Surveillance des Institute Financiers (OSIF)
in Geneva and Organisation de Surveillance Financière (OSFIN) in Neuchâtel.
These licenses enable OSIF and OSFIN to take on roles as supervisory
organizations tasked with overseeing portfolio managers and trustees.
The granting of licenses
to OSIF and OSFIN by FINMA came in the wake of Switzerland’s enactment of the
Financial Institutions ACT (FinIA) and the Financial Services Act (FinSA).
Independent entities in these roles must secure authorization from FINMA,
ensuring they adhere to the regulatory
framework set by FinIA
and FinSA, as well as comply with anti-money laundering regulations.
Supervisory Oversight in
New Regulatory Landscape
In the past, FINMA has
issued a clarion call to asset managers and trustees, urging them to take
immediate action in accordance with the guidelines issued in 2022. The FINMA
guidance underscores a key
procedural aspect:
applicants are required to first submit their applications to a supervisory
organization for evaluation.
FINMA, entrusted with
reporting criminal offences, is empowered to relay cases related to
non-compliance to criminal prosecution authorities. Concurrently, FINMA
initiates its own
enforcement investigations.
Two days ago, FINMA
announced the signing of a cooperation agreement with the Italian supervisory
authority (CONSOB) and the Italian national bank, Banca d’Italia, Reuters
reported. One of the outcomes of the freshly-inked regulatory collaboration is
the provision of clearer legal certainty for institutions aiming to gain a
foothold in the Italian market.
