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Financial Services Act and Financial Institutions Act

Dmytro Pichugin

Attorney at Law / Managing Partner

October 14, 2018Legal Alert

Federal Council consultation on ordinance to Financial Services Act and Financial Institutions Act

On the 24 of October 2018, The Federal Council has initiated consultation in Bern, which will last till 6 February 2019 concerning the three below mentioned ordinances, which contain new provisions for the Financial Services Act (hereunder FinSA) and the Financial Institutions Act (hereunder FinIA).
The FinSA specify the way and rules to follow when financial service providers (hereunder FSP) offer their securities and financial instruments. The FinIA presents renewed content for the better supervision for the various financial institutions.
The Financial Services Ordinance (FinSO): • Explains and describes the Duties (to provide advice and information) of FSPs. • Contains provisions about FSPs organization as well as the key information documents (clients may compare different financial instruments in a more simplified way).
The Financial Institutions Ordinance (FinIO):
• Explains and describes the Duties and authorization conditions for the financial institutions as well as their supervision. • New requirements to the subject of prudential supervision (the managers of individual assets and trustees).
The Supervisory Organisation Ordinance (SOO): • Regulates the authorization conditions and activities for the newly created supervisory organizations. • Supervisory organizations are responsible for the supervision of FSPs (portfolio managers, trustees and trade assayers) in accordance with the Precious Metals Control Act. • FINMA will provide all supervisory organizations with a risk assessment system and minimum requirements concerning this authorization and the enforcement of the supervisory law.
The above-mentioned changes in the FinSA and FinIA as well as their ordinances will finally enter into the force on the 1 January 2020.

  • Legal disclaimer.This article does not constitute legal advice and does not establish an attorney-client relationship. The article should be used for informational purposes only.

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