Newsletter 549: Parliamentary Process on FIDLEG and FINIG has been concluded

Dear Sir or Madam,

The parliamentary process regarding FIDLEG (financial services act) and FINIG (financial institutes act) is over. Swiss parliament has voted to accept FIDLEG and FINIG on 15 June 2018. The final provisions are hereby attached. The provisions will most likely enter into force on 1 January 2020.

This new legislation will bring a new regulatory regime for independent asset managers and trustees. They will now need a license directly from FINMA, who will also be the sanctioning authority in case of misbehavior. The ongoing supervision will be carried out by so-called supervisory organizations. They are themselves also licensed for this activity by FINMA. Since it is likely that multiple supervisory organizations will be established, the ongoing supervision will be carried out in a competitive environment, from which IAM and trustees will benefit through competitive rates and efficient supervisory processes. FINcontrol Suisse AG is the body within the VQF-group that will apply for such license as supervisory organization. VQF will campaign for a most smooth transition of IAM and trustees from SRO-regulation to FINMA-license. Please find more information about the topic under www.fincontrol.ch. We believe that FIDLEG and FINIG are an opportunity for the IAM and trustees business sector in Switzerland, in particular because the regulation is also suitable for smaller businesses. VQF will focus its efforts on ordinances that do not hinder this important compatibility with smaller market players in this field.

FIDLEG will also apply to investment advisors, although they will not need a FINMA-license. VQF Academy will further grow its training partnerships with different academic partners in order to provide all the necessary education that will be required for IAM and investment advisors.

We expect that the detailing ordinances to FIDLEG and FINIG will be published in late October 2018. VQF will subsequently inform its members through newsletters and specific trainings. Many provisions from FIDLEG and FINIG need to be specified in the respective ordinances in order to evaluate the real impact on each individual IAM, trustee or investment advisor. Furthermore, FINMA will itself provide further clarification on the supervisory process and its expectations from those that will need a FINMA-license in the future under FIDLEG and FINIG.

Kind regards,

VQF
Financial Services Standards Association