AvelaLaw – FinSA Rules of Conduct Training

Client advisers of Swiss financial service providers not subject to supervision as well as of certain foreign financial service providers may only carry out their activity in Switzerland if they are entered in a Register of Advisers. This registration requirement applies in particular to client advisers who provide financial services that are not in themselves an activity requiring authorization, for instance investment advice or the acquisition or disposal of financial instruments for clients (formerly known as “distribution”). If you are in doubt whether or not you are subject to the duty to register, CAPSTONELAW will be pleased to assist you.

The Register of Advisers is maintained by a Registration Body approved by the Swiss Financial Market Supervisory Authority FINMA. BX Swiss AG, Zurich, has been approved as of 20 July 2020 as first Registration Body. With that approval, a 6-month transition period initiated. Hence, the client advisers concerned have until 19 January 2021 to submit an application to the Registration Body for entry in the Register of Advisers. However, the proof of the required knowledge according to Art. 6 FINSA (see below) can still be provided retrospectively throughout the entire year 2021.

The conditions for registration in the Register of Advisers are met by anyone who can provide the following evidence:

• the existence of a professional indemnity insurance or that equivalent collateral exists;
• affiliation to an Ombudsman’s Office;
• absence of exclusion criteria (relevant criminal conviction, activity ban, ban on practicing a profession);
• Existence of the required knowledge according to art. 6 FINSA, i.e. (i) the expertise required to perform the activities and (ii) sufficient knowledge of the rules of conduct set out in the FINSA for rendering financial services. Thereby, expertise and knowledge of the rules of conduct must be evidenced separately.