FIDLEG and FINIG – New Regulation for Asset Managers and Trustees

The Financial Services Act FIDLEG and the Financial Institutions Act FINIG will be regulating the licensing requirements forasset managers and trustees in Switzerland, as well as conduct rules for this sector. The regulatory package is an evolutionary step-up to address the evolved needs of society and regulatory challenges. To be accepted in an international environment FIDLEG and FINIG have well-wanted parallels with MiFID II.

The substantial changes in the asset management and trustees sector is the implementation of conduct rules in the form of a federal act as well as new requirements regarding compliance structures and business conduct, mandatory financial securities and a new supervisory regime including a mandatory FINMA license.

The regulatory project has been controversial from the very beginning, and has evolved to the current draft only after intense efforts of VQF and other organizations. The draft is currently under debate in Swiss Parliament. In the process, substantial exceptions have been added to the legal text, e.g. for certain fiduciary activities and for attorney or public notary affairs.

Theoretically, the whole regulatory package could be abolished. But the signs received from Parliament are clear. The Package itself is not seriously disputed any more. The supervision concept was brought in by the States Council and is supported by the preliminary commission of the National Council. The regulatory package will likely enter into force on 1 January 2019. After that, a three years long transitional period will be in place to file a request for license with FINMA. In addition to this, a so-called Grandfathering was suggested by the States Council, although its advantages will most likely be significantly reduced by market forces. Some requirements will be set out according to the size of the asset manager or trustee. DUFI however will not benefit from transitional provisions. Such financial intermediaries will have to join an SRO such as VQF in the transitional period.

More about timeline and milestones

Please find more information directly on the EFD-website.

Contact

FINcontrol Suisse Ltd

Baarerstrasse 112
6300 Zug

T: +41 41 763 28 20
@: info@fincontrol.ch