Fedlex Data Admin CH Eli CC 2019 763 20240301 en PDF A

954.
11
English is not an official language of the Swiss Confederation. This translation is
provided for information purposes only and has no legal force.
Ordinance
on Financial Institutions
(Financial Institutions Ordinance, FinIO)
of 6 November 2019 (Status as of 1 March 2024)
The Swiss Federal Council,

based on the Financial Institutions Act of 15 June 20181 (FinIA),
ordains:
Chapter 1 General Provisions

Section 1 Subject Matter and Scope of Application
Art. 1 Subject matter

(Art. 1 and 72 FinIA)
This Ordinance governs:

a. the authorisation conditions for financial institutions;
b. the duties of the financial institutions;
c. the supervision of the financial institutions.
Art. 2 Scope of application

(Art. 2 FinIA)
This Ordinance applies to financial institutions operating in or from Switzerland.
Art. 3 Business ties

(Art. 2 para. 2 let. a FinIA)
Companies or units of a group are deemed to have business ties insofar as they provide
financial services or services in the capacity of trustee for other companies or units of
the same group.
Art. 4 Family ties

(Art. 2 para. 2 let. a FinIA)
1 The following persons are deemed to have family ties with one another:
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954.11 Financial Institutions
a. relatives by blood or by marriage in the direct line;

b. relatives by blood or by marriage up to the fourth degree in the collateral line;
c. spouses and registered partners;
d. coheirs and legatees from succession until completion of the division of estate
or allocation of the legacy;
e. remaindermen and remainderwomen and residuary legatees in accordance
with Article 488 of the Swiss Civil Code2 (CC);
f. persons living in a permanent life partnership with a portfolio manager or trus-
tee.
2 Family ties are deemed to exist insofar as portfolio managers manage assets or trus-
tees manage in-house funds in favour of persons who have family ties with one an-
other, if the portfolio managers or trustees are directly or indirectly controlled by:
a. third parties who have family ties with these persons;
b. a trust, a foundation or a similar legal construct set up by a person with family
ties.
3 Paragraph 2 also applies insofar as, in addition to the persons with family ties, insti-
tutions with a public or not-for-profit purpose are also beneficiaries.
Art. 5 Employee participation schemes

(Art. 2 para. 2 let. b FinIA)
Employee participation schemes are deemed to be plans which:

a. represent a direct or indirect investment in the company of the employer or in
another company which by virtue of a majority of votes or by some other
means is under uniform management with the company of the employer
(group); and
b. are directed at employees who at the time of the offer are not under notice.
Art. 6 Legally regulated mandates

(Art. 2 para. 2 let. d FinIA)
Legally regulated mandates are in particular:

a. an advance care directive in accordance with Articles 360–369 CC3;
b. a representative deputyship to manage assets in accordance with Article 395
CC;
c. a general deputyship in accordance with Article 398 CC;
d. an executorship in accordance with Articles 517 and 518 CC;
e. an estate administration in accordance with Articles 554 and 555 CC;
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Financial Institution Ordinance 954.11
f. an official liquidation in accordance with Articles 593–596 CC;

g. a representation of heirs in accordance with Article 602 paragraph 3 CC;
h. a bankruptcy administration in accordance with Articles 237 paragraph 2 and
Article 240 of the Federal Act of 11 April 18894 on Debt Enforcement and
Bankruptcy (DEBA);
i. an administrative receivership in accordance with Article 295 DEBA;
j. enforcement tasks under an ordinary composition agreement in accordance
with Article 314 paragraph 2 DEBA;
k. an appointment as liquidator under a composition agreement with assignment
of assets in accordance with Article 317 DEBA;
l. an appointment as investigating agent in accordance with Article 36 of the
Financial Market Supervision Act of 22 June 20075 (FINMASA);
m. a restructuring mandate in accordance with Article 28 paragraph 3 of the
Banking Act of 8 November 19346 (BankA), Article 67 paragraph 1 FinIA
and Article 88 paragraph 1 of the Financial Market Infrastructure Act of 19
June 20157 (FinMIA);
n. a bankruptcy liquidation in accordance with Article 33 paragraph 2 BankA,
Article 67 paragraph 1 FinIA, Article 137 paragraph 3 of the Collective In-
vestment Schemes Act of 23 June 20068 (CISA), Article 88 paragraph 1
FinMIA and Article 53 paragraph 3 of the Insurance Supervision Act of
17 December 20049 (ISA);
o. a liquidation in accordance with Article 23quinquies paragraph 1 BankA, Arti-
cle 66 paragraph 2 FinIA, Article 134 CISA, Article 87 paragraph 2 FinMIA
and Article 52 ISA.
Art. 7 Exemption
(Art. 2 FinIA)
Where there are legitimate grounds for so doing, the Swiss Financial Market Super-
visory Authority (FINMA) may fully or partially exempt managers of collective assets
from the provisions of the FinIA and the present Ordinance if:
a. the protective purpose of the FinIA is not impaired; and
b. the management of collective assets has been delegated to them solely by the
following persons:
1. authorised parties in accordance with Article 2 paragraph 1 letters c and
d as well as paragraph 2 letters f–i FinIA,
4 SR 281.1
5 SR 956.1
6 SR 952.0
7 SR 958.1
8 SR 951.31
9 SR 961.01
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2. authorised parties in accordance with Article 13 paragraph 2 letters b–d

CISA10, or
3. foreign companies which with regard to organisation and investor rights
are subject to rules that are equivalent to the provisions of the FinIA and
the CISA.
Art. 8 Significant group companies

(Art. 4 para. 2 FinIA)
The functions of a group company are significant with respect to the activities which
require authorisation if they are necessary for the continuation of important business
processes, in particular in the areas:
a. liquidity management;
b. treasury;
c. risk management;
d. master data administration and accounting;
e. personnel;
f. information technology;
g. trading and settlement;
h. legal and compliance.
Section 2 Common Provisions
Art. 9 Authorisation application and duty to obtain authorisation

1 The financial institution shall submit an authorisation application to FINMA. The
application shall contain all information and documents required to assess it, specifi-
cally information and documents on:
a. the organisation, in particular on corporate governance and control as well as
on risk management (Articles 9, 20, 21 and 33 FinIA);
b. the place of management (Article 10 FinIA);
c. the guarantee (Article 11 FinIA);
d. tasks and the delegation of such tasks (Articles 14, 19, 26, 27, 34, 35 and 44
FinIA);
e. minimum capital and collateral (Articles 22, 28, 36 and 45 FinIA);
f. capital (Articles 23, 29, 37 and 46 FinIA);
g. the ombudsman's office (Article 16 FinIA);
10 SR 951.31
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h. the supervisory organisation and the audit firm (Articles 61–63 FinIA).
2 Insurance companies as defined in the ISA11 are exempt from the duty to obtain
authorisation as a manager of collective assets.
3 Exemption from the duty to obtain authorisation as a trustee from FINMA can be
granted to trustees which act exclusively as trustees for trusts which were established
by the same person or in favour of the same family and which are held and monitored
by a financial institution which possesses authorisation in accordance with Article 5
paragraph 1 or Article 52 paragraph 1 FinIA.
Art. 10 Change in facts

Changes of material significance for financial institutions in accordance with Article 8

paragraph 2 FinIA are in particular:
a. changes in organisational and partnership documents;
b. changes in the persons responsible for administration and management;
c. changes in minimum capital and capital adequacy, in particular falling short
of minimum requirements;
d. facts which are likely to call into question the good reputation or the guarantee
of irreproachable business conduct on the part of the financial institution or of
the persons entrusted with management tasks as well as of owners of a quali-
fied participation, specifically the initiation of criminal proceedings;
e. facts which call into question prudent and sound business activity on the part
of the financial institution owing to the influence of owners of a qualified par-
ticipation.
Art. 11 Form for submission

(Art. 5, 7 and 8 FinIA)
1 FINMA may determine the form for submission, specifically for the following doc-
uments:
a. applications for authorisation from financial institutions and necessary docu-
ments;
b. reports of changes in accordance with Article 8 FinIA and necessary docu-
ments.
2 It may designate a third party as recipient of submitted documents.
Art. 12 Organisation
(Art. 9 FinIA)
1 Financial institutions must define their organisation in their organisational princi-
ples.
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2 They must describe their area of business in factually and geographically precise
terms in the principal documents. The business area and its geographical extent must
be commensurate with the financial possibilities as well as with the operational or-
ganisation.
3 Financial institutions must have personnel in place who are appropriately and suita-
bly qualified to perform their business activities.
4 Riskmanagement must encompass all business activities and be organised in such a
way that all the main risks can be identified, assessed, controlled and monitored.
Art. 13 Guarantee
(Art. 11 FinIA)
1 The application for authorisation for a new financial institution must contain in par-
ticular the following information and documentation on the persons responsible for
administration and management in accordance with Article 11 paragraphs 1 and 2
FinIA as well as on the owners of a qualified participation in accordance with Arti-
cle 11 paragraph 3 FinIA:
a. natural persons:
1. details of nationality, place of residence, qualified participations in the
financial institution or in other companies and pending court and admin-
istrative proceedings,
2. a curriculum vitae signed by the relevant person,
3. references,
4.12 a standard private extract from the VOSTRA information system of the
Register of Criminal Records and an extract from the debt enforcement
register or corresponding confirmation if the person is resident abroad;
b. companies:
1. the articles of association,
2. an extract from the commercial register or a corresponding attestation,
3. a description of business activities, the financial situation and, if applica-
ble, the group structure,
4. details of completed and pending court or administrative proceedings.
2 The envisaged activity at the financial institution as well as the nature of the intended
investments must also be taken into account when assessing the good reputation, the
guarantee of irreproachable business conduct and the required specialist qualifications
of the persons responsible for administration and management.
3 Owners of a qualified participation must make a declaration to FINMA stating
whether they hold the participation in question for their own account or on a fiduciary
basis for third parties, and whether they have granted options or similar rights with
respect to this participation.
12 Amended by Annex 10 No II 30 of the Criminal Records Register Ordinance of

19 Oct. 2022, in force since 23 Jan. 2023 (AS 2022 698).
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4 Securities firms must submit to FINMA within 60 days of the end of the financial
year a list of all persons who hold a qualified participation in them. This list shall
contain details on the identity and percentage holding of all qualified participants as
at the relevant closing date, as well as any changes relative to the prior-year closing
date. In addition, the information and documentation set out in paragraph 1 is to be
submitted for any qualified participants being reported for the first time.
5 Persons connected through business ties or in any other manner who jointly hold at
least 10% of the share capital or votes of the financial institution or persons jointly
significantly influencing the business activities of the financial institution in another
manner are deemed to be a qualified participant in accordance with Article 11 para-
graph 4 FinIA.
Art. 14 Public offer of securities on the primary market

(Art. 12 FinIA)
1 The question of what constitutes a public offer is determined on the basis of Article 3
letters g and h of the Financial Services Act of 15 June 201813 (FinSA).
2 Offersto schemes and persons in accordance with Article 65 paragraphs 2 and 3 are
not deemed public.
Art. 15 Delegation of tasks

1 Tasks in accordance with Article 14 paragraph 1 FinIA are deemed delegated if fi-
nancial institutions appoint a service provider to independently and permanently per-
form in full or in part a material task, thereby changing the circumstances underlying
the authorisation.
2 Material tasks are deemed to be:
a. for portfolio managers and trustees: tasks in accordance with Article 19
FinIA;
b. for managers of collective assets: tasks in accordance with Article 26 FinIA;
c. for fund management companies: tasks in accordance with Article 32, Arti-
cle 33 paragraph 4 and Article34 FinIA;
d. for securities firms: tasks in accordance with Articles 41 and 44 FinIA.
Art. 16 Delegable tasks

1 Financial institutions may delegate to third parties only tasks in accordance with Ar-
ticle 14 paragraph 1 FinIA which do not need to be within the decision-making remit
of the body responsible for management or for governance, supervision and control.
2 Delegation must not impair the appropriateness of the operational organisation.
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3 The operational organisation is no longer deemed to be appropriate if a financial

institution:
a. does not have the necessary personnel resources and specialist knowledge to
select, instruct and monitor the third party and manage the associated risks, or
b. does not have the necessary rights to issue instructions to or control the third
party.
Art. 17 Delegation of tasks: responsibility and procedures

1 Thefinancial institutions remain responsible for the fulfilment of supervisory duties
and when delegating tasks shall safeguard clients' interests.
2 They shall agree with the third party in writing or in another form demonstrable via
text which tasks are to be delegated. The following in particular are to be laid down
in the agreement:
a. the authorities and responsibilities;
b. any powers of sub-delegation;
c. the third party's duty to render account;
d. the financial institutions' rights of control.
3 Financialinstitutions shall lay down in their organisational principles the tasks del-
egated as well as details of the possibility of sub-delegation.
4 Delegation is to be defined such that the financial institution, its internal auditors,
the audit firm, the supervisory organisation and FINMA can inspect and review the
delegated task.
Art. 18 International business

(Art. 15 FinIA)
1 The notification which a financial institution is required to submit to FINMA before
engaging in activities abroad must contain all the information and documents needed
to assess such activities, specifically:
a. a business plan describing in particular the nature of the planned transactions
and the organisational structure;
b. the name and address of the office abroad;
c. the names of the persons responsible for administration and management;
d. the auditing firm;
e. the name and address of the supervisory authority in the foreign state in which
the registered office or domicile is located.
2 Furthermore, the financial institution shall notify FINMA of:
a. the discontinuation of business activities abroad;
b. any material change in business activities abroad;
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c. a change in audit firm;

d. a change in the supervisory authority in the foreign state in which the regis-
tered office or domicile is located.
Chapter 2 Financial Institutions

Section 1 Portfolio Managers and Trustees
Art. 19 Commerciality
1 Portfolio managers and trustees are deemed to pursue their activities on a commer-
cial basis and, within the meaning of anti-money laundering legislation, on a profes-
sional basis if they:
a. thereby generate gross earnings of more than CHF 50,000 per calendar year;
b. establish business relationships with more than 20 contractual partners per
calendar year, each of which relationships is not limited to a once-only activ-
ity, or they maintain at least 20 such relationships per calendar year; or
c. have unlimited power of disposal over assets belonging to others, which assets
exceed CHF 5 million at any given time.
2 Activities for schemes and persons in accordance with Article 2 paragraph 2 let-
ters a, b, d and e FinIA are not factored into the assessment of commerciality.
3 Paragraphs1 and 2 do not apply to portfolio managers in accordance with Article 24
paragraph 2 FinIA.
Art. 20 Additional authorisation

(Art. 6 FinIA)
1 Portfolio managers also wishing to act as trustees require additional authorisation for
this.
2 Trustees also wishing to act as portfolio managers require additional authorisation
for this.
Art. 21 Entitlement to be subject to supervision by a supervisory

organisation
1 Portfoliomanagers and trustees are entitled to be subject to supervision by a super-
visory organisation if their internal rules and their operational organisation ensure that
the supervisory requirements are satisfied.
2A supervisory organisation can make subjection to supervision dependent on port-
folio managers and trustees being required to maintain special statutory professional
confidentiality.
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Art. 22 Change in facts

(Art. 8 FinIA)
1 Portfolio managers and trustees shall notify the supervisory organisation of any
changes in the facts on which its authorisation is based. The supervisory organisation
shall periodically forward the changes to FINMA.
2 Ifauthorisation is required in accordance with Article 8 paragraph 2 FinIA, FINMA
will as part of its assessment hear the supervisory organisation.
(Art. 9 FinIA)
1 Two authorised signatories must sign jointly. Article 20 paragraph 2 FinIA remains
reserved.
2 Portfoliomanagers and trustees must be able to be represented by a person who has
their place of residence in Switzerland. This person must be a member of the body
responsible for management or of the body responsible for governance, supervision
and control in accordance with paragraph 3. Article 20 paragraph 2 FinIA remains re-
served.
3 With reservation as to Article 20 paragraph 2 FinIA, FINMA may require the port-
folio manager or trustee to appoint a body responsible for governance, supervision
and control the majority of whose members are not members of the body responsible
for management if:
a. it has ten or more full-time positions or annual gross earnings of more than
CHF 5 million; and
b. the nature and scope of its activities so demand.
Art. 24 Tasks
(Art. 19 FinIA)
1 The portfolio manager shall ensure that the assets entrusted to it for management are
held in safekeeping, segregated per client, with a bank pursuant to the BankA14, a
securities firm pursuant to the FinIA, a trading facility for distributed ledger technol-
ogy securities (DLT trading facility) in accordance with the FinMIA15 or other insti-
tution that is subject to supervision equivalent to that in Switzerland.16
2 Itshall manage the assets on the basis of authorisation given in writing or in another
form demonstrable via text. The authorisation must be limited to administrative acts.
If the portfolio manager is entrusted with the provision of further services which re-
quire more far-reaching authorisations, it shall document the basis of these activities.
3 Portfoliomanagers shall take measures to avoid a break-off of contact with clients
and to prevent client relationships from becoming dormant. If a business relationship
14 SR 952.0
15 SR 958.1
16 Amended by No I 7 of the O of 18 June 2021 on the Adaptation of Federal Law to Devel-
opments in Distributed Ledger Technology, in force since 1 Aug. 2021 (AS 2021 400).
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becomes dormant, the portfolio manager shall take suitable steps to ensure that
dormant assets are delivered to beneficiaries.
4 Paragraph2 applies by analogy to trustees. Moreover, trustees must, within the
framework of the law applicable to the trust:
a. act in the best possible interests of beneficiaries and with the required level of
skill, care and diligence;
b. take appropriate organisational precautions to avoid conflicts of interest or
disadvantages for beneficiaries as a result of conflicts of interest.
5 If the rendering of additional services increases the risks to which portfolio managers
and trustees are exposed, this must be taken into account within the scope of supervi-
sion (Articles 61 and 62 FinIA).
Art. 25 Qualified managers

(Art. 20 FinIA)
1A qualified manager is deemed to satisfy the requirements for training and profes-
sional experience at the time of assuming management duties if she or he can furnish
evidence of the following:
a. five years of professional experience:
1. in the case of portfolio managers, in portfolio management for third par-
ties,
2. in the case of trustees, within the framework of trusts; and
b. training of at least 40 hours:
1. in the case of portfolio managers, in portfolio management for third par-
ties,
2. in the case of trustees, within the framework of trusts.
2 Where there are legitimate grounds for so doing, FINMA may grant exemptions
from these requirements.
3 Portfolio
managers and trustees shall engage in regular continuing professional de-
velopment to maintain the skills acquired.
4 They shall take the necessary precautions to ensure the continuation of business op-
erations in the event that the qualified manager is prevented from acting or dies. If
third parties from outside the company are appointed, the clients must be informed
accordingly. In all other respects, Article 14 FinIA shall apply.
Art. 26 Risk management and internal control

1 Portfolio
managers and trustees shall set out guidelines for the basic principles of
risk management and define their risk tolerance.
2 Risk management and internal control are not required to be independent of revenue-
based activities if the portfolio manager or trustee:
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a. is a company which has five or fewer full-time positions or annual gross earn-
ings of less than CHF 2 million; and
b. adheres to a non-high-risk business model.
3 The thresholds in accordance with paragraph 2 letter a must be achieved in two of
three past business years or be provided for in the business planning.
4 If the portfolio manager or trustee has a body responsible for governance, supervi-
sion and control in accordance with Article 23 paragraph 3 and generates annual gross
earnings of more than CHF 10 million, FINMA may also require that internal auditors
who are independent of management be appointed where the nature and scope of ac-
tivity so dictate.
Art. 27 Minimum capital

1 The minimum capital requirements of companies limited by shares and of partner-
ships limited by shares must be met with share and participation capital, those of lim-
ited liability companies must be met with nominal capital, and those of cooperatives
must be met with cooperative capital.
2 Theminimum capital requirements of partnerships and sole proprietorships must be
met with:
a. the capital accounts;
b. the limited partnership contributions;
c. the assets of partners with unlimited liability.
3 The capital accounts and assets of partners with unlimited liability may only be
counted towards the minimum capital requirement if a declaration is provided to the
effect that:
a. in the event of liquidation, bankruptcy or probate proceedings, such accounts
and assets shall be subordinate to the claims of all other creditors; and
b. the portfolio manager or trustee undertakes:
1. neither to net such accounts and assets with its own claims nor to secure
them with its own assets,
2. without the prior consent of the supervisory organisation, not to reduce
any of the capital components as defined in paragraph 2 letters a and c to
the extent that the minimum capital requirement is no longer met.
4 The declaration in accordance with paragraph 3 is irrevocable. It must be made in
writing or in another form demonstrable via text and filed with the supervisory organ-
isation.
5 FINMA may permit partnerships and sole proprietorships to provide, instead of min-
imum capital, collateral in the form of a bank guarantee or a cash deposit in a blocked
account with a bank, said collateral being equivalent to the minimum capital in ac-
cordance with Article 22 paragraph 1 FinIA.
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Art. 28 Level of capital adequacy

(Art. 23 FinIA)
1 The level of capital adequacy stipulated in Article 23 FinIA must be maintained at
all times.
2 The following are fixed costs in accordance with Article 23 paragraph 2 FinIA:
a. personnel expenses;
b. operating business expenses;
c. depreciation of investment assets;
d. expenses for valuation adjustments, provisions and losses.
3 The portion of personnel expenses which is exclusively dependent on the business
result or in relation to which no legal entitlement exists is to be deducted from per-
sonnel expenses.
4 Where there are legitimate grounds for so doing, FINMA may ease requirements.
Art. 29 Qualifying capital

(Art. 23 FinIA)
1 Legal entities may count the following as qualifying capital:
a. the paid-up share and participation capital in the case of a company limited by
shares and a partnership limited by shares, the nominal capital in the case of
a limited liability company and the cooperative capital in the case of a coop-
erative;
b. the general statutory and other reserves;
c. retained earnings;
d. the net profit for the current financial year after deduction of the estimated
share in the profit distribution, provided an audit review or an audit pursuant
to the CO17 of the interim or annual accounts confirms the assurances stipu-
lated;
e. hidden reserves, provided they are assigned to a separate account and desig-
nated as capital and their qualifiability as such is confirmed on the basis of the
audit in accordance with Article 62 FinIA.
2 Partnerships and sole proprietorships may count the following as qualifying capital:
a. the capital accounts and assets of partners with unlimited liability if the con-
ditions under Article 27 paragraph 3 are satisfied;
b. the limited partnership contribution.
3 Portfolio managers and trustees may also count as qualifying capital any loans
granted to them, including bonds with a maturity of at least five years, if a declaration
is provided to the effect that:
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a. in the event of liquidation, bankruptcy or probate proceedings, such loans

shall be subordinate to the claims of all other creditors; and
b. the portfolio manager or trustee undertakes neither to net such loans with its
own claims nor to secure them with its own assets.
writing or in another form demonstrable via text and filed with the supervisory organ-
isation.
Art. 30 Deductions applied when calculating the level of capital adequacy

(Art. 23 FinIA)
The following shall be deducted when calculating the level of capital adequacy:
a. the loss carried forward and the loss for the current financial year;
b. any unsecured valuation adjustments and provisions for the current financial
year;
c. in the case of loans in accordance with Article 29 paragraph 3: 20% of the
original nominal amount per year for the last five years prior to repayment;
d. intangible assets (including start-up and organisational costs as well as good-
will) with the exception of software;
e. in the case of a company limited by shares and a partnership limited by shares:
the shares which they hold in the company at their own risk;
f. in the case of a limited liability company: the capital contribution which it
holds in the company at its own risk;
g. the carrying amount of participations.
Art. 31 Collateral
(Art. 22 para. 2 and 23 FinIA)
1 Collateral
is deemed to be appropriate if the applicable provisions on capital are
complied with.
2 Insofaras it covers the risks entailed by the business model, professional indemnity
insurance may be counted 50% towards qualifying capital.
3 FINMA shall regulate the details of professional liability insurance, in particular
with regard to term, notice period, the amount of insurance cover, the professional
liability risks to be covered and the reporting duties.
Art. 32 Accounting
1 Portfolio managers and trustees are subject to the accounting regulations of the CO18.
Article 957 paragraphs 2 and 3 CO are not applicable.
18 SR 220
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2 Where portfolio managers and trustees are subject to specific, more stringent ac-
counting standards, such standards take precedence.
Art. 33 Internal documentation

(Art. 9 FinIA)
Internal documentation of the portfolio managers and trustees must allow the audit
firm, the supervisory organisation and FINMA to form a reliable picture of the busi-
ness activities.
Section 2 Managers of Collective Assets
Art. 34 Calculation of thresholds

1 The following apply to calculation of the thresholds for collective investment
schemes managed by the manager of collective assets in accordance with Article 24
paragraph 2 letter a FinIA:
a. Assets managed include all Swiss and foreign collective investment schemes
managed by the same manager irrespective of whether it manages them di-
rectly or via delegation or via a company with which it is connected through:
1. a single management;
2. a relationship of common control; or
3. a significant direct or indirect participation.
b. The value of the assets is calculated on at least a quarterly basis, under due
consideration of any leverage effect.
c. For collective investment schemes that were established more than 12 months
previously, the threshold may be calculated on the basis of the average value
of the assets over the last four quarters.
d. The value of the collective investment schemes pursuant to Article 24 para-
graph 2 letter a item 2 FinIA is calculated on the basis of the capital commit-
ments or the nominal value of the collective investment schemes concerned,
provided the price of the investments underlying such schemes is not obtained
through trading on a regulated market.
2 The following apply to calculation of the thresholds for the assets of occupational
pension schemes managed by the manager of collective assets within the meaning of
Article 24 paragraph 2 letter b FinIA:
a. Assets of the following occupational pension schemes shall be included:
1. registered and non-registered occupational pension schemes;
2. employer-sponsored welfare funds;
3. investment foundations;
4. pillar 3a foundations;
5. vested benefits foundations.
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b. The manager shall calculate on a quarterly basis whether the threshold of

CHF 100 million has been reached.
c. The occupational pension scheme shall calculate annually whether the thresh-
old of 20% has been reached in the mandatory segment. It shall inform the
manager of the value calculated.
3 Threshold values in accordance with Article 24 paragraph 2 letters a and b FinIA
shall not be added together.
4 FINMA regulates the details for calculating the thresholds and the leverage effect in
accordance with paragraphs 1 and 2.
Art. 35 Procedure in the event that thresholds are exceeded

1 If a manager exceeds a threshold in accordance with Article 24 paragraph 2 FinIA,
it shall notify FINMA to that effect within 10 days.
2 The manager must submit to the latter an application for authorisation pursuant to
Article 24 paragraph 1 FinIA within 90 days if, during this period, they have not made
changes to their business model which make a renewed exceeding of the thresholds
appear unlikely.
3 If
changes are made to the business model within the meaning of paragraph 2 during
an ongoing authorisation procedure, the authorisation procedure will be rendered un-
necessary.
Art. 36 Authorisation as manager of collective assets

FINMA shall grant a portfolio manager in accordance with Article 24 paragraph 2

FinIA authorisation in accordance with Article 24 paragraph 3 FinIA if:
a. it has its registered office in Switzerland;
b. the conditions of authorisation in accordance with Article 24 paragraph 1
FinIA are satisfied; and
c. Swiss or applicable foreign law provides that the management of collective
assets may only be delegated to a supervised manager of collective assets.
Art. 36a19 Additional authorisation

(Art. 6 FinIA)
Managers of collective assets also wishing to act as trustees require additional author-
isation for this.
19 Inserted by Annex No 8 of the O of 31 Jan. 2024, in force since 1 March 2024

(AS 2024 73).
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(Art. 9 FinIA)
1 Two authorised signatories must sign jointly.
2 Managers of collective assets must be able to be represented by a person who has
their place of residence in Switzerland. This person must be a member of the body
responsible for management or of the body responsible for governance, supervision
and control.
3 The body responsible for management must comprise at least two persons.
4 Managers of collective assets must appoint a special body responsible for govern-
ance, supervision and control.
5 Where there arelegitimate grounds for so doing, FINMA may allow departures from
these requirements; it may grant exemptions in particular from the duty in accordance
with paragraph 4 where the nature and scope of activity so dictate, in particular if the
company has ten or fewer full-time positions or annual gross earnings of less than
CHF 5 million.
Art. 38 Body responsible for governance, supervision and control

(Art. 9 FinIA)
1 The majority of the members of the body responsible for governance, supervision
and control may not be members of the body responsible for management.
2 Thechair may not at the same time hold the office of chair of the body responsible
for management.
3 At least one third of members must be independent of the persons who hold a qual-
ified participation in the manager of collective assets and in companies of the same
conglomerate or group. Managers of collective assets which are part of a financial
group subject to consolidated supervision by FINMA are exempted.
4 Where there arelegitimate grounds for so doing, FINMA may allow departures from
these requirements.
Art. 39 Tasks
(Art. 26 FinIA)
1 The receipt and transmission of orders in the name of and on behalf of clients in
relation to financial instruments is deemed to be an administrative activity in accord-
ance with Article 26 paragraph 3 FinIA which a manager of collective assets can per-
form within the scope of its tasks in accordance with Article 26 FinIA. Article 35
FinIA remains reserved.
2A manager of collective assets which also offers personalised asset management in
accordance with Article 6 paragraph 4 in conjunction with Article 17 paragraph 1
FinIA may not invest the investor's assets, whether in full or in part, in units of col-
lective investment schemes that it manages, unless the client has given their general
consent beforehand.
17 / 42
3 Ifthe rendering of additional services increases the risks to which managers of col-
lective assets are exposed, this must be taken into account within the scope of super-
vision (Articles 61 and 63 FinIA).

1 Whether a delegation of investment decisions is deemed to have the necessary au-
thorisation in accordance with Article 14 paragraph 1 FinIA is determined in accord-
ance with Article 24 FinIA. Foreign managers of collective assets must be subject to
authorisation and supervision which is at least equivalent.
2 Where foreign law requires an agreement on cooperation and the exchange of infor-
mation with the foreign supervisory authorities, investment decisions may only be
delegated to managers of collective assets abroad if such an agreement is in place
between FINMA and the foreign supervisory authorities relevant for the respective
investment decisions.

(Art. 9 FinIA)
1 Managers of collective assets must have an appropriately defined risk management
system in place as well as an effective internal control structure to ensure in particular
compliance with legal and internal provisions.
2 They shall set out guidelines for the basic principles of risk management and define
their risk tolerance.
3 They will keep the functions of risk management and compliance functionally and
hierarchically separate from the operational business units, in particular from the func-
tion of investment decisions (portfolio management).
4 The body responsible for the governance, supervision and control of the manager of
collective assets is charged with establishing, securing and monitoring the internal
control system (ICS). This body also defines risk tolerance.
5 The body responsible for management implements the corresponding requirements
stipulated by the body for governance, supervision and control, it develops suitable
guidelines, procedures and processes, and reports periodically to the body responsible
for governance, supervision and control.
6 Paragraphs4 and 5 do not apply to managers of collective assets which are granted
an exemption in accordance with Article 37 paragraph 5.
7 Ifa body responsible for governance, supervision and control has been appointed in
accordance with Article 37 paragraph 4, FINMA may also require that internal audi-
tors who are independent of management be appointed where the nature and scope of
activity so dictate.
8 Where there are legitimate grounds for so doing, FINMA may depart from these
requirements.
9 FINMA shall regulate the details.
18 / 42

1 Theminimum capital of managers of collective assets must amount to at least
CHF 200,000 and be paid up in full. This amount must be maintained at all times.
2 The minimum capital requirements of companies limited by shares and of partner-
ships limited by shares must be met with share and participation capital, those of lim-
ited liability companies must be met with nominal capital.
3 The minimum capital requirements of partnerships must be met with:
a. the capital accounts;
b. the limited partnership contributions;
c. the assets of partners with unlimited liability.
4 The capital accounts and assets of partners with unlimited liability may only be
counted towards the minimum capital requirement if a declaration is provided to the
effect that:
a. in the event of liquidation, bankruptcy or probate proceedings, such accounts
and assets shall be subordinate to the claims of all other creditors; and
b. the manager of collective assets undertakes:
1. neither to net such accounts and assets with its own claims nor to secure
them with its own assets,
2. without the prior consent of the audit firm, not to reduce any of the capital
components as defined in paragraph 3 letters a and c to the extent that the
minimum capital requirement is no longer met.
writing or in another form demonstrable via text and filed with the audit firm.
6 Ifa manager of collective assets for foreign collective investment schemes conducts
the fund business within the meaning of Article 26 paragraph 2 FinIA, FINMA can
stipulate a higher minimum capital requirement.
Art. 43 Collateral
1 FINMA may permit partnerships to provide, instead of minimum capital, collateral
in the form of a bank guarantee or a cash deposit in a blocked account with a bank,
said collateral being equivalent to the minimum capital in accordance with Article 42.
2 Wherethere are legitimate grounds for so doing, FINMA may stipulate a different
minimum amount.

(Art. 29 FinIA)
1 The capital stipulated in Article29 FinIA must be maintained at all times and amount
to at least one quarter of the fixed costs reported in the most recent annual accounts
and no more than CHF 20 million, including capital in accordance with paragraph 2.
19 / 42
2 Managers of collective assets must:

a. hold capital amounting to 0.01% of the total collective assets managed by the
manager of collective assets; or
b. take out professional liability insurance.
3 FINMA shall regulate the details of professional liability insurance, in particular
with regard to term, notice period, the amount of insurance cover, the professional
liability risks to be covered and the reporting duties.
4 Fixed costs in accordance with paragraph 1 are:
sonnel expenses.
6 Where there are legitimate grounds for so doing, FINMA may ease requirements or
impose stricter requirements.20

(Art. 29 FinIA)
1 Legal entities may count the following as qualifying capital:
a. the paid-up share and participation capital in the case of a company limited by
shares and a partnership limited by shares, and the nominal capital in the case
of a limited liability company;
share in the profit distribution, provided an audit review or an audit pursuant
to the CO21 of the interim or annual accounts confirms the assurances stipu-
lated;
nated as own capital and their qualifiability as such is confirmed on the basis
of the audit in accordance with Article 63 FinIA.
2 Partnerships may count the following as qualifying capital:
a. the capital accounts and assets of partners with unlimited liability if the con-
ditions under Article 42 paragraph 4 are satisfied;
20 Amended by Annex No 8 of the O of 31 Jan. 2024, in force since 1 March 2024

(AS 2024 73).
21 SR 220
20 / 42
b. the limited partnership contribution.

3 Managers of collective assets may also count as qualifying capital any loans granted
to them, including bonds with a maturity of at least five years, if a declaration is pro-
vided to the effect that:
b. they have undertaken neither to net such loans with their own claims nor to
secure them with their own assets.
5 Own capital in accordance with paragraphs 1 and 2 must amount to at least 50% of
total capital required.

(Art. 29 FinIA)
b. any unsecured valuation adjustments and provisions for the current financial
year;
e. in the case of a company limited by shares and of a partnership limited by
shares: the shares which they hold in the company at their own risk;
f. in the case of a limited liability company: the capital contribution which it
holds in the company at its own risk;
Art. 47 Accounting and annual report

1 Managers of collective assets are subject to the accounting regulations of the CO22.
Where managers of collective assets are subject to specific, more stringent accounting
standards, such regulations take precedence.
2 The manager of collective assets shall submit to FINMA the annual report, the sum-
mary audit company report to the general meeting or members’ general meeting and
the full audit company report for the body responsible for governance, supervision
and control within six months days of the end of the financial year. The manager of
22 SR 220
21 / 42
collective assets shall append to the annual report a list of the prescribed and available
capital as at the balance sheet date.23
3 The duty to prepare a full audit company report does not apply to managers of col-
lective assets that are granted an exemption in accordance with Article 37 para-
graphs 4 and 5 from the duty to appoint a special body responsible for governance,
supervision and control.24

(Art. 9 FinIA)
Internal documentation of the managers of collective assets must allow the audit firm
and FINMA to form a reliable picture of the business activities.
Section 3 Fund Management Companies
Art. 49 Independent management of investment funds

(Art. 32 FinIA)
1 The independent management of investment funds in its own name and for the ac-
count of investors by the fund management company comprises in particular:
a. decisions on the issue of units, on investments and on their valuation;
b. calculation of the net asset value;
c. determination of the issue and redemption prices as well as distributions of
profit;
d. assertion of all rights pertaining to the investment fund.
2 Institutions
which engage solely in administration activities for externally managed
SICAVs pursuant to CISA25 manage investment funds independently and as fund
management companies require authorisation in accordance with Article 5 para-
graph 1 in conjunction with Article 32 FinIA.
Art. 49a26 Additional authorisation

(Art. 6 FinIA)
Fund management companies also wishing to act as trustees require additional author-
isation for this.

(AS 2024 73).
(AS 2024 73).
25 SR 951.31
(AS 2024 73).
22 / 42
Art. 50 Head office in Switzerland

The head office of the fund management company is deemed to be in Switzerland if

the following conditions are met:
a. The non-transferable and inalienable duties of the board of directors in ac-
cordance with Article 716a CO27 are performed in Switzerland.
b. For each of the investment funds managed by the fund management company,
in minimum the following tasks are performed in Switzerland:
1. decisions on the issue of units;
2. decisions on investment policy and on the valuation of investments;
3. valuation of investments;
4. determination of issue and redemption prices;
5. determination of distributions of profit;
6. determination of the content of the prospectus and the key information
document, of the annual or the semi-annual report, as well as of further
publications intended for investors;
7. keeping of accounts.
1 Fund management companies shall as a rule have at least three full-time positions
with authority to sign.
2 Two authorised signatories must sign jointly.
4 Fund management companies must appoint a special body responsible for govern-
ance, supervision and control.
5 Where there are legitimate grounds for so doing, FINMA may allow relaxations of
these requirements or it may impose more stringent requirements.
Art. 52 Body responsible for governance, supervision and control

1 The body responsible for governance, supervision and control must comprise at least
three members.
2 The majority of the members of this body may not also be members of the body
responsible for management.
3 Thechair may not at the same time hold the office of chair of the body responsible
for management.
4 At least one third of members must be independent of the persons who hold a qual-
ified participation in the fund management company and in companies of the same
27 SR 220
23 / 42
group. Fund management companies which are part of a financial group subject to
consolidated supervision by FINMA are exempted.
Art. 53 Independence
1 Simultaneous membership of the body responsible for governance, supervision and
control of the fund management company and that of the custodian bank is permitted.
2 Simultaneous membership of the body responsible for management of the fund man-
agement company and that of the custodian bank is not permitted.
3 The majority of the members of the body responsible for governance, supervision
and control of the fund management company must be independent of the persons at
the custodian bank who are tasked with the duties in accordance with Article 73
CISA28. Persons at the custodian bank at management level tasked with duties in ac-
cordance with Article 73 CISA are not deemed to be independent.
4 None of the authorised signatories of the fund management company may at the
same time be responsible at the custodian bank for duties in accordance with Arti-
cle 73 CISA.
Art. 54 Conduct of fund business

1 Inaddition to the tasks specified in Articles 32 and 33 paragraph 4 FinIA as well as
in accordance with Article 49, fund business specifically entails:
a. the representation of foreign collective investment schemes;
b. the acquisition of participations in companies whose main purpose is the col-
lective investment scheme business;
c. the keeping of unit accounts.
2 The fund management company may only perform these activities and any further
services in accordance with Article 34 FinIA if its articles of association so provide.
3 Article26 paragraph 2 FinIA applies by analogy to the conduct of fund business for
foreign collective investment schemes.
Art. 55 Tasks
(Art. 34 FinIA)
1 Fund management companies shall keep their own assets separate from managed
assets at all times.
2 They shall ensure that the valuation of investments, portfolio management and trad-
ing and settlement are kept separate both functionally and in terms of personnel.
28 SR 951.31
24 / 42
3A fund management company which also offers personalised asset management in

accordance with Article 6 paragraph 3 in conjunction with Article 17 paragraph 1
FinIA may not invest the investor's assets, whether in full or in part, in units of col-
lective investment schemes that it manages, unless the client has given their general
consent beforehand.
4 Where there are legitimate grounds for so doing, FINMA may allow exemptions or
it may order the separation of further functions.

1 Whether a delegation of investment decisions is deemed to have the necessary au-
thorisation in accordance with Article 14 paragraph 1 FinIA is determined in accord-
ance with Article 24 FinIA. Foreign managers of collective assets must be subject to
authorisation and supervision which is at least equivalent.
2 Where foreign law requires an agreement on cooperation and the exchange of infor-
mation with the foreign supervisory authorities, investment decisions may only be
delegated to managers of collective assets abroad if such an agreement is in place
between FINMA and the foreign supervisory authorities relevant for the respective
investment decisions.

(Art. 9 FinIA)
1 Fundmanagement companies must have an appropriately defined risk management
system in place as well as an effective internal control structure to ensure in particular
compliance with legal and internal provisions.
hierarchically separate from the operational business units, in particular from portfolio
management.
4 Thebody responsible for the governance, supervision and control of the fund man-
agement company is charged with establishing, securing and monitoring the ICS. This
body also defines risk tolerance.
5 The body responsible for management implements the corresponding requirements
stipulated by the body for governance, supervision and control, it develops suitable
guidelines, procedures and processes, and reports at appropriate intervals to the body
responsible for governance, supervision and control.
6 Where the nature and scope of activity so justify, FINMA may require the appoint-
ment of internal auditors who are independent of management.
7 Where there are legitimate grounds for so doing, it may depart from these require-
ments.
8 It shall regulate the details.
25 / 42

(Art. 36 FinIA)
The minimum capital of fund management companies must amount to at least CHF 1
million and be paid up in full. This amount must be maintained at all times.

(Art. 37 FinIA)
1 The level of capital adequacy stipulated in Article 37 FinIA must be maintained at
all times. They must amount to no more than CHF 20 million, including the capital in
accordance with paragraph 5.
2 They will be calculated as follows in percentages of the total assets of the collective
investment schemes managed by the fund management company:
a. 1% for that portion of the total assets not exceeding CHF 50 million;
b. ¾% for that portion of the total assets exceeding CHF 50 million, but not ex-
ceeding CHF 100 million;
c. ½% for that portion of the total assets exceeding CHF 100 million, but not
exceeding CHF 150 million;
d. ¼% for that portion of the total assets exceeding CHF 150 million, but not
exceeding CHF 250 million;
e. ⅛% for that portion of the total assets exceeding CHF 250 million.
3 Where the fund management company renders further services in accordance with
Article 34 FinIA, the operational risks arising from such transactions are calculated
using the basic indicator approach as defined in Article 92 of the Capital Adequacy
Ordinance of 1 June 201229 (CAO).
4 Ifthe fund management company is entrusted with the administration and portfolio
management of the assets of a SICAV, its total assets must be included in the calcu-
lation of capital in accordance with paragraph 2.
5 If
the fund management company is solely entrusted with the administration of a
SICAV, it must hold additional capital of 0.01% of the total assets of the SICAV.

(Art. 37 FinIA)
1 Fund management companies may count the following as qualifying capital:
a. the paid-up share and participation capital;
profit distribution, provided an audit review of the interim accounts including
a complete income statement is available;
29 SR 952.03
26 / 42
nated as capital and their qualifiability as such is confirmed on the basis of the
audit in accordance with Article 63 FinIA.
2 Fund management companies may also count as qualifying capital any loans granted
to them, including bonds with a maturity of at least five years, if a declaration is pro-
vided to the effect that:
b. the fund management company undertakes neither to net such loans with its
own claims nor to secure them with its own assets.
4 Capital in accordance with paragraph 1 must amount to at least 50% of total capital
required.

(Art. 37 FinIA)
b. the unsecured valuation adjustments and provisions for the current financial
year;
e. own shares held by the fund management company at its own risk;
Art. 62 Accounting and annual report

(Art. 9, 33, 36 and 37 FinIA)
1 Fund management companies are subject to the accounting regulations of the CO30.
Where fund management companies are subject to specific, more stringent accounting
standards, such regulations take precedence.
2 The fund management company shall submit to FINMA the annual report, the sum-
mary audit company report to the general meeting and the full audit company report
for the body responsible for governance, supervision and control within six months of
the end of the financial year. The fund management company shall append to the an-
nual report a list of the prescribed and available capital as at the balance sheet date.31
30 SR 220
(AS 2024 73).
27 / 42

Internal documentation of the fund management companies must allow the audit firm
and FINMA to form a reliable picture of the business activities.
Art. 64 Change of fund management company

(Art. 39 FinIA)
Article 27 CISA32 and Article 41 of the Collective Investment Schemes Ordinance of

22 November 200633 apply by analogy to a change of fund management company.
Section 4 Securities Firms
Art. 65 Commerciality
1 Securities firms within the meaning of Article 41 letter a FinIA are deemed to pursue
their activities on a commercial basis if they directly or indirectly manage accounts or
hold securities in safekeeping for more than 20 clients.
2 Thefollowing are not deemed to be clients within the meaning of Article 41 letter a
FinIA:
a. domestic and foreign banks and securities firms or other companies under
state supervision;
b. shareholders or partners holding a qualifying participation and persons with
whom they have business or family ties;
c. institutional investors with professional treasury operations.
3 Activities for schemes and persons in accordance with Article 2 paragraph 2 let-
ters a, b, d and e FinIA are not factored into the assessment of commerciality.
4 The proper functioning of the financial market is deemed potentially jeopardised
within the meaning of Article 41 letter b item 1 FinIA if the total volume of executed
trades in securities exceeds CHF 5 billion per calendar year in Switzerland.
5 Any party admitted as a direct participant of a trading venue is deemed to be operat-
ing as a member of a trading venue within the meaning of Article 41 letter b item 2
FinIA.
6A securities firm shall publicly quote prices within the meaning of Article 41 letter c
FinIA if the prices according to Article 3 letters g and h FinSA34 are part of an offer
to the public. Offers to schemes and persons in accordance with paragraphs 2 and 3
are not deemed public.
7 Fund management companies are not deemed to be securities firms.
32 SR 951.31
33 SR 951.311
34 SR 950.1
28 / 42
(Art. 9 FinIA)
1 Securitiesfirms must be able to be represented by a person who has their place of
residence in Switzerland. This person must be a member of the body responsible for
management or of the body responsible for governance, supervision and control.
3 Firms trading for the account of clients and firms acting as market makers within the
meaning of Article 41 letters a and c FinIA must appoint a special body responsible
for governance, supervision and control. Its members may not be members of the body
responsible for management.
Art. 67 Tasks
(Art. 44 FinIA)
1 Within the frame of their tasks in accordance with Article 44 FinIA, securities firms
shall ensure an effective internal separation between the functions of trading, asset
management and settlement. Where there are legitimate grounds for so doing, FINMA
may allow exemptions or it may order the separation of further functions.
2 Ifthey do not operate primarily in the financial sector, firms trading for the account
of clients and firms acting as market makers within the meaning of Article 41 letters
a and c FinIA must keep securities trading activities legally separate.
3 In all other respects, Article 14 applies.

(Art. 9 FinIA)
1 Securitiesfirms must have an appropriately defined risk management system in
place as well as an effective internal control structure to ensure in particular compli-
ance with legal and internal provisions.
hierarchically separate from the operational business units, in particular from the func-
tion of trading.
4 Firmstrading for the account of clients and firms acting as market makers within the
meaning of Article 41 letters a and c FinIA shall appoint internal auditors who are
independent of management. Internal auditors must be provided with sufficient re-
sources and have unlimited audit rights.
29 / 42
Art. 69 Minimum capital and collateral

(Art. 45 FinIA)
1 The minimum capital of securities firms must amount to at least CHF 1.5 million
and be paid up in full. This amount must be maintained at all times.
2 Inthe case of companies formed using a contribution in kind, the value of the assets
contributed and the extent of liabilities must be verified by a licensed audit firm. This
also applies to the conversion of an existing company into a securities firm.
3 In the case of securities firms in the form of a partnership, capital is deemed to be:
a. the capital accounts; and
b. the assets of partners with unlimited liability.
4 Assets in accordance with paragraph 3 may only be counted towards the minimum
capital requirement if a declaration is provided to the effect that:
a. in the event of liquidation, bankruptcy or probate proceedings, such assets
b. the securities firm undertakes:
1. neither to net such assets with its own claims nor to secure them with its
own assets,
2. without the prior consent of the audit firm, not to reduce any of the capital
components to the extent that the minimum capital requirement is no
longer met.
6 FINMA may allow securities firms in the form of a partnership to provide, instead
of minimum capital in accordance with paragraphs 3 and 4, collateral of at least
CHF 1.5 million, for example in the form of a bank guarantee or a cash deposit in a
blocked account with a bank.
7 Wherethere are legitimate grounds for so doing, FINMA can stipulate a higher min-
imum capital requirement.
Art. 70 Capital and risk diversification

(Art. 46 FinIA)
1 Securitiesfirms which themselves do not hold accounts in accordance with Arti-
cle 44 paragraph 1 letter a FinIA must maintain at all times capital amounting to at
least one quarter of the fixed costs reported in the most recent annual accounts and no
more than CHF 20 million.
2 Fixed costs are deemed to be:
30 / 42

sonnel expenses.
4 Securitiesfirms which themselves hold accounts in accordance with Article 44 par-
agraph 1 letter a FinIA must comply with the provisions of the CAO35.
Art. 70a36 Eligible capital

(Art. 46 FinIA)
1Securities firms may include the following as capital in accordance with Article 70
paragraphs 1 to 3:
a. paid-up share capital plus, in the case of partnerships, alternative capital
instruments;
a. disclosed reserves;
b. retained earnings;
c. the quarterly profits after deduction of the estimated profit distribution
amount;
d. subordinated bonds that are only repayable with the consent of FINMA.
2 The capital under paragraph 1 letters a to c can be included in full.
3 70% of the quarterly profits may be included after deducting the estimated profit
distribution, subject to the existence of a complete income statement in accordance
with FINMA's implementing provisions based on Article 42 of the Banking Ordinance
of 30 April 201437 or of a complete income statement in accordance with an
international standard recognised by FINMA, even if the income statement has not
been audited. Where justified, FINMA can require an attestation.
4 The following must be deducted in full from the eligible capital under paragraph 1
letters a to d:
a. the value of any participations in the context of the individual entity
calculation;
b. goodwill, including any goodwill included in the valuation of significant
interests in financial sector entities outside the scope of consolidation, and
intangible assets;
c. deferred tax assets (DTAs) that depend on future profitability, whereby
offsetting against corresponding deferred tax liabilities within the same
geographical and material tax jurisdiction is permitted.
35 SR 952.03
36 Inserted by No I 7 of the O of 18 June 2021 on the Adaptation of Federal Law to Devel-
37 SR 952.02
31 / 42
5If the capital under paragraph 1 letters a to d exceeds CHF 1.5 million after the de-
ductions under paragraph 4, 40% of the subordinated bonds may be included for the
excess amount.
Art. 71 Liquidity
(Art. 46 FinIA)
1 Securities firms which themselves do not hold accounts in accordance with Arti-
cle 44 paragraph 1 letter a FinIA must invest their resources such that sufficient li-
quidity is guaranteed at all times.
2 Securitiesfirms which themselves hold accounts in accordance with Article 44 par-
agraph 1 letter a FinIA must comply with the provisions of the Liquidity Ordinance
of 30 November 201238.
Art. 72 Accounting
(Art. 45–48 FinIA)
The provisions on accounting contained in the Banking Ordinance of 30 April 201439

apply by analogy.

(Art. 9 FinIA)
Internal documentation of the securities firms must allow the audit firm and FINMA
to form a reliable picture of the business activities.
Art. 74 Record-keeping duty

(Art. 50 FinIA)
1 The securities firm must keep a record of all orders received by it and all transactions
in securities executed by it.
2 The record-keeping duty also applies to orders and transactions in derivatives whose
underlying instruments are securities admitted to trading on a trading venue or DLT
trading facility40.
3 It
applies not only to transactions for own account, but also to transactions executed
on behalf of clients.
4 FINMA shall regulate which information is necessary and what form it is to be rec-
orded in.
38 SR 952.06
39 SR. 952.02
40 Term in accordance with No I 7 of the O of 18 June 2021 on the Adaptation of Federal
Law to Developments in Distributed Ledger Technology, in force since 1 Aug. 2021
(AS 2021 400). This amendment has been taken into account only in the provisions
mentioned in the AS.
32 / 42
Art. 75 Reporting duty

(Art. 51 FinIA)
1 The securities firm shall report all transactions it executes involving securities ad-
mitted to trading on a trading venue or DLT trading facility. In particular, the follow-
ing must be reported:
a. the designation and number of the securities purchased or sold;
b. the volume, date and time of the transaction;
c. the price;
d. the details necessary to identify the beneficial owner.
2 Thereporting duty also applies to transactions in derivatives whose underlying in-
struments are securities admitted to trading on a trading venue or DLT trading facility.
3 It
applies not only to transactions for own account, but also to transactions executed
on behalf of clients.
4 The following transactions executed abroad do not have to be reported:
a. transactions in securities admitted to trading on a trading venue or DLT trad-
ing facility in Switzerland and in derivatives with such securities as their un-
derlying instruments, provided the information in question is communicated
to the trading venue or DLT trading facility on the basis of an agreement in
accordance with Article 32 paragraph 3 FinMIA41 or within the framework of
an exchange of information between FINMA and the competent foreign su-
pervisory authority if:
1. said transactions are executed by the branch of a Swiss securities firm or
by a foreign admitted participant, and
2. the branch or the foreign participant is authorised to trade by the relevant
foreign supervisory authority and is required to report in the correspond-
ing state or in its state of domicile;
b. transactions in foreign securities admitted to trading on a trading venue or
DLT trading facility in Switzerland and in derivatives with such securities as
their underlying instruments, which transactions are executed on a recognised
foreign trading venue or DLT trading facility.
5 Third parties may be involved in reporting.
Section 5 Branches
Art. 76 Foreign financial institutions

1A foreign financial institution is any company organised in accordance with foreign
legislation and which:
41 SR 958.1
33 / 42
a. possesses authorisation abroad as a financial institution;

b. in the company name, in the description of its business purpose or in commer-
cial documents uses terms in accordance with Article 13 paragraph 2 FinIA
or a term of similar meaning; or
c. operates a financial institution within the meaning of Article 2 paragraph 1
FinIA.
2 If
the foreign financial institution is effectively managed from Switzerland or if it
executes its transactions exclusively or predominantly in or from Switzerland, it must
be organised in accordance with Swiss legislation and be subject to the provisions
governing domestic financial institutions.42
Art. 77 Duty to obtain authorisation and authorisation conditions

1 The foreign financial institution must have:
a. authorisation and supervision at least equivalent to the authorisation and su-
pervision requested for the branch in Switzerland;
b. collateral which is comparable to that in accordance with:
1. Articles 22 and 23 FinIA in the case of foreign financial institutions
which manage assets or act as a trustee (Article 52 paragraph 1 letter a
FinIA),
2. Articles 28, 29, 36 and 37 FinIA in the case of foreign financial institu-
tions which perform fund business, portfolio management for collective
investment schemes or portfolio management for occupational pension
schemes (Article 52 paragraph 1 letter b FinIA),
3. Articles 45–47 FinIA in the case of foreign financial institutions which
trade securities, execute transactions or manage client accounts (Arti-
cle 52 paragraph 1 letters c–e FinIA).
2 The branch must:
a. comply with the standards of the FinSA43 if it provides financial services in
accordance with Article 3 letter c FinSA;
b. comply with the conditions in accordance with Article 20 FinIA in the case of
foreign financial institutions which manage assets or act as a trustee (Arti-
cle 52 paragraph 1 letter a FinIA);
c. be subject to supervision:
1. in accordance with Articles 61 and 62 FinIA in the case of foreign finan-
cial institutions which manage assets or act as a trustee,
2. in accordance with Articles 61 and 63 FinIA in the case of foreign finan-
cial institutions in accordance with Article 52 paragraph 1 letters b–e
FinIA.
42 The correction of 26 Aug. 2022 concerns the French text only (AS 2022 470).
43 SR 950.1
34 / 42
3 The foreign financial institution may only apply for entry of the branch in the com-
mercial register when FINMA has granted said financial institution authorisation to
establish the branch.
Art. 78 Multiple branches

1 If a foreign financial institution establishes multiple branches in Switzerland, it must:
a. obtain authorisation for each one;

b. designate one among them which is responsible for relations:
1. with FINMA and the supervisory organisation in the case of Article 52
paragraph 1 letter a FinIA,
2. with FINMA in the case of Article 52 paragraph 1 letters b–e FinIA.
2 These branches must jointly meet the conditions of the FinIA and the present Ordi-
nance. An audit report is sufficient.
Art. 79 Annual and interim accounts of branches

1 Branches may draw up their annual and interim accounts in accordance with the
provisions which apply to the foreign financial institution, provided they satisfy inter-
national standards of accounting.
2 Claims and liabilities must be stated separately:
a. in respect of the foreign financial institution;
b. in respect of companies active in the financial sector or real estate firms if:
1. the foreign financial institution forms an economic unit with them, or
2. it is to be assumed that the foreign financial institution is de jure or de
facto obliged to provide assistance to group companies.
3 Paragraph 2 also applies to off-balance-sheet business.
4A branch shall send its annual and interim accounts:
a. to the supervisory organisation for submission to FINMA in the case of Arti-
cle 52 paragraph 1 letter a FinIA;
b. to FINMA in the case of Article 52 paragraph 1 letters b–e FinIA.
5 Publication is not required.
Art. 80 Audit report

1 The audit firm shall send its audit report:
a. to the supervisory organisation for submission to FINMA in the case of Arti-
cle 52 paragraph 1 letter a FinIA;
b. to FINMA in the case of Article 52 paragraph 1 letters b–e FinIA.
35 / 42
2 It shall provide a copy to the branch manager responsible.

3 The branch will send the copy of the audit report to the unit of the foreign financial
institution which is responsible for the business activities of the branch.
Art. 81 Closure of a branch

The foreign financial institution shall obtain the approval of FINMA before closing a
branch.
Section 644 Representations

(Art. 58 para. 1 and 2 and 59 FinIA)
Art. 82
1 The representation of a foreign financial institution that provides financial services
in accordance with Article 3 letter c of the FinSA45 must:
a. comply with the provisions of the FinSA;
b. enter its client advisers in a register of advisers in accordance with Article 28
of the FinSA if they do not exclusively provide their services in Switzerland
to professional or institutional clients in accordance with Article 4 of the
FinSA.
2 The prohibition on establishing a representation of a foreign fund management com-
pany in accordance with Article 58 paragraph 2 of the FinIA46 applies exclusively to
the representation's activities in relation to the administration and management of in-
vestment funds.
3 If a foreign financial institution establishes two or more representations in Switzer-
land, it must obtain authorisation for each representation.47
4 The foreign financial institution must obtain approval from FINMA before closing
a representation.48
44 Amended by No I 7 of the O of 18 June 2021 on the Adaptation of Federal Law to Devel-

45 SR 950.1
46 SR 954.1
(AS 2024 73).
(AS 2024 73).
36 / 42
Chapter 3 Supervision
Section 1 Portfolio Managers and Trustees
Art. 83 Domestic group companies

1 For domestic portfolio managers and trustees which form part of a financial group
FINMA can provide that ongoing supervision is performed exclusively within the
framework of group supervision. This is conditional on the group company being
closely integrated into the risk management, internal control and internal auditing
structures of the financial group.
2 FINMA shall publish a list of the group companies monitored by it in accordance
with paragraph 1.
Art. 84 Ongoing supervision

1 The supervisory organisation shall verify on an ongoing basis whether the entities
under its supervision specifically:
a. satisfy the requirements of the FinIA;
b. observe the duties pursuant to the Anti-Money Laundering Act of 10 October
199749 (AMLA);
c. observe the duties pursuant to the FinSA50 if they provide financial services
in accordance with Article 3 letter c FinSA;
d. observe the duties pursuant to the CISA51 if they perform activities falling
under the CISA.
2 FINMA shall provide the supervisory organisations with guidelines for auditing and
supervision. In particular, it shall set down for the supervisory organisations a system
of risk assessment as well as minimum requirements to be met by the supervision
concept. It shall consult with the supervisory organisations beforehand.
3 Audit actions and their findings shall
be recorded in audit reports. Audit reports shall
be published in an official language. Exemptions through audit firms in accordance
with Article 43k FINMASA52 require the consent of the supervisory organisation.
4 Ifthe supervisory organisation supervises a financial institution whose activity re-
quires a higher authorisation level on exceeding thresholds, the supervisory organisa-
tion will monitor compliance with these thresholds and notify FINMA and the finan-
cial if they are exceeded.
5 The issuance of rulings is reserved to FINMA. FINMA shall intervene in the ongoing
supervision by the supervisory organisation if this is necessary to enforce the financial
market acts in accordance with Article 1 paragraph 1 FINMASA.
49 SR 955.0
50 SR 950.1
51 SR 951.31
52 SR 956.1
37 / 42
6 If managers of collective assets or fund management companies act as trustees,

FINMA shall exercise day-to-day supervision over their activities. The same audit
firm shall be appointed auditor as for activities as a manager of collective assets or
fund management company under Article 63 paragraph 1 FinIA.53
Art. 85 Coordination of supervisory activities

With respect to the supervision of portfolio managers and trustees, FINMA and the
supervisory organisations will coordinate their supervisory activities in order to avoid
duplication.
Art. 86 Appointment of audit firms

Where the supervisory organisation does not itself conduct the audit of supervised
entities, it will ensure that:
a. the appointed audit firm is correctly mandated and authorised in accordance
with Article 43k FINMASA54;
b. the appointed audit firm implements the guidelines provided by FINMA;
c. the areas audited and the corresponding depths of audit of risk assessments
are commensurate with its supervision concept; and
d. it is informed immediately of any irregularities.
Art. 87 Audit frequency

1 When defining the audit frequency and the intensity of supervision, the supervisory
organisation shall be guided by the risks associated with the activity of those super-
vised and the risks associated with their organisation.
2 Inyears in which no regular audit takes place, the supervisory authority shall collect
standardised data on the risks associated with those supervised.
3 It
shall assess the self-declared data collected and take further measures where nec-
essary.
4 FINMA shall set down for, and in consultation with, the supervisory organisation
guidelines for conducting an assessment in accordance with paragraphs 1–3.

(AS 2024 73).
54 SR 956.1
38 / 42
Section 2
Managers of Collective Assets, Fund Management Companies,
Securities Firms, Financial Groups and Financial Conglomerates
Art. 88 Auditing
1 The audit firm shall verify whether the entities under its supervision specifically:
a. satisfy the requirements of the FinIA;
b. observe the duties pursuant to the AMLA55;
c. observe the duties pursuant to the FinSA56 if it provides financial services in
accordance with Article 3 letter c FinSA;
d. observe the duties pursuant to the CISA57 if they perform activities falling
under the CISA.
2 Supervised entities for which the audit firm submits an annual risk analysis are ex-
empted from the duty to report on their business activity's compliance in accordance
with Article 63 paragraph 3 FinIA.
Art. 89 Cooperation between audit firms

(Art. 63 FinIA)
The audit firms of supervised entities which cooperate in accordance with Article 14,
27 or 35 FinIA must themselves cooperate closely.
Section 3 Measures under Insolvency Law

(Art. 67 FinIA)
Art. 90
Article 24 BankA58 applies by analogy to fund management companies and securities
firms.
Chapter 4 Final Provisions
Art. 91 Repeal and amendment of other legislative instruments

(Art. 73 FinIA)
The repeal and amendment of other legislative instruments are set out in the Annex.
55 SR 955.0
56 SR 950.1
57 SR 951.31
58 SR 952.0
39 / 42
Art. 92 Transitional provisions for portfolio managers and trustees

(Art. 74 FinIA)
1 Portfoliomanagers and trustees which until entry into force of the FinIA were su-
pervised by FINMA as financial intermediaries directly subordinated to it pursuant to
the AMLA59 are no longer required to be affiliated to a self-regulatory organisation
in accordance with Article 24 AMLA if, within one year of entry into force of the
FinIA, they:
a. receive confirmation from a supervisory organisation that they are subject to
supervision in accordance with Article 7 paragraph 2 FinIA; and
b. submit an authorisation application to FINMA.
2 They shall submit a report on their business activity's compliance with the provisions
of the AMLA:
a. to the supervisory organisation prior to being subject to supervision in accord-
ance with Article 7 paragraph 2 FinIA; or
b. to the self-regulatory organisation prior to affiliation accordance with Arti-
cle 14 AMLA.
Art. 93 Further transitional provisions

(Art. 74 FinIA)
1 Article5 paragraph 2 FinIA is not applicable to financial institutions which on entry
into force of the FinIA are already entered in the commercial register.
2 Financial institutions which provide services in accordance with the FinSA60 must
be affiliated to the ombudsman's office within six months of the Federal Department
of Finance recognising or establishing for them an ombudsman's office in accordance
with Article 84 FinSA. The period is deemed met on submission of the application.
3 Financial institutions that have their registered office abroad and by reason of a
branch or representation in Switzerland already hold authorisation are not required to
submit a new application for authorisation. They must satisfy the legal requirements
within one year of entry into force.
4 Financial institutions that have their registered office abroad and by reason of a
branch or representation in Switzerland are newly required to obtain authorisation
pursuant to the FinIA shall report to FINMA within six months of entry into force.
They must satisfy the legal requirements and submit an application for authorisation
within three years of entry into force. They may continue their activities until a deci-
sion on authorisation is made.
5 Article
77 paragraph 3 is not applicable to branches which on entry into force of the
FinIA are already entered in the commercial register.
59 SR 955.0
60 SR 950.1
40 / 42
6 Exemptions granted by FINMA based on Article 18 paragraph 3 CISA61 in the ver-

sion of 28 September 201262 to managers of collective investment schemes remain
valid under Article 7 of the present Ordinance.
Art. 94 Commencement
This Ordinance enters into force on 1 January 2020.
61 SR 951.31
62 AS 2013 585
41 / 42
Annex
(Art. 91)
Repeal and amendment of other legislative instruments

I
The Stock Exchange Ordinance of 2 December 199663 is repealed.
II
The legislative instruments below are amended as follows:
…64
63 [AS 1997 85, 2044 Art. 2; 2004 2781; 2005 4849 No III; 2006 4307 Annex 7 No 2; 2008
5363 Annex No 9; 2012 5441 Annex 6 No 3; 2013 1111; 2014 1269 Annex 2 No 6, 2321
Annex 4 No 2, 4295 Annex No 4; 2015 5413 Annex 1 No 12; 2017 3715 No III]
64 The amendments may be consulted under AS 2019 4633.
42 / 42

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954.

of 6 November 2019 (Status as of 1 March 2024)

The Swiss Federal Council,

Chapter 1 General Provisions

Art. 1 Subject matter

This Ordinance governs:

Art. 2 Scope of application

This Ordinance applies to financial institutions operating in or from Switzerland.

Art. 3 Business ties

Art. 4 Family ties

a. relatives by blood or by marriage in the direct line;

Art. 5 Employee participation schemes

Employee participation schemes are deemed to be plans which:

Art. 6 Legally regulated mandates

Legally regulated mandates are in particular:

f. an official liquidation in accordance with Articles 593–596 CC;

2. authorised parties in accordance with Article 13 paragraph 2 letters b–d

Art. 8 Significant group companies

Section 2 Common Provisions

Art. 9 Authorisation application and duty to obtain authorisation

Art. 10 Change in facts

Changes of material significance for financial institutions in accordance with Article 8

Art. 11 Form for submission

12 Amended by Annex 10 No II 30 of the Criminal Records Register Ordinance of

Art. 14 Public offer of securities on the primary market

Art. 15 Delegation of tasks

Art. 16 Delegable tasks

3 The operational organisation is no longer deemed to be appropriate if a financial

Art. 17 Delegation of tasks: responsibility and procedures

Art. 18 International business

c. a change in audit firm;

Chapter 2 Financial Institutions

Art. 20 Additional authorisation

Art. 21 Entitlement to be subject to supervision by a supervisory

Art. 22 Change in facts

Art. 25 Qualified managers

Art. 26 Risk management and internal control

Art. 27 Minimum capital

Art. 28 Level of capital adequacy

Art. 29 Qualifying capital

a. in the event of liquidation, bankruptcy or probate proceedings, such loans

Art. 30 Deductions applied when calculating the level of capital adequacy

Art. 33 Internal documentation

Section 2 Managers of Collective Assets

Art. 34 Calculation of thresholds

b. The manager shall calculate on a quarterly basis whether the threshold of

Art. 35 Procedure in the event that thresholds are exceeded

Art. 36 Authorisation as manager of collective assets

FINMA shall grant a portfolio manager in accordance with Article 24 paragraph 2

Art. 36a19 Additional authorisation

19 Inserted by Annex No 8 of the O of 31 Jan. 2024, in force since 1 March 2024

Art. 38 Body responsible for governance, supervision and control

Art. 40 Delegation of tasks

Art. 41 Risk management and internal control

Art. 42 Minimum capital

Art. 44 Level of capital adequacy

2 Managers of collective assets must:

Art. 45 Qualifying capital

20 Amended by Annex No 8 of the O of 31 Jan. 2024, in force since 1 March 2024