The Swiss Financial Market Supervisory Authority (FINMA) has today published an update on the licensing of portfolio managers.
FINMA notes that on 31 December 2023 it approved 1,149 (70%) of the license applications from portfolio managers and administrators received before 31 December 2022, while 63 institutions (4%) have withdrawn their applications. The remaining 487 applications (26%) are more complex and will take longer to complete.
If an institution that is continuously affiliated with a self-regulatory organization has submitted its license application to FINMA together with proof of its membership in a supervisory organization (SO) before the end of the transition period, it can continue to operate.
A large number of change requests requiring authorization (994) were submitted in 2023, which entails a significant workload for FINMA.
FINMA also states that from now on trustees will be considered to be operating on a commercial basis and will require a license if the trust assets exceed CHF 5 million at any time, because the trust assets are financially separate from the trustee, that is, they are assets owned by third parties. Administrators now required to obtain a license under FinIA must apply for a license before the end of 2024.
In the two-tier supervision model for portfolio managers and trustees, SOs are responsible for performing ongoing supervision of portfolio managers and trustees. FINMA is responsible for approving any changes affecting licensing requirements, exercising intensive supervision and taking corrective measures to restore supervised institutions’ compliance with the law.
This division of responsibilities requires a significant degree of coordination, particularly with five SOs currently empowered. The supervisory levy reflects FINMA’s work inherent in the two-tier supervisory model.