FINMA Consults on Financial Institutions Ordinance and Other Proposals

The draft of new FINMA ordinance regulates the details of professional indemnity insurance for portfolio managers, trustees, and managers of collective assets, the details on calculating the de minimis threshold for gaining authorization as a portfolio manager, and the details on risk management and internal control system for managers of collective assets. FINMA also issued draft amendments to the current ordinances and circulars, including the following:

• As a result of the transfer of the provisions on managers of collective assets and fund managers to the FinIA, a number of adjustments to the Collective Investment Schemes Ordinance (CISO-FINMA) will be required.
• Due to the discontinuation of the directly subordinated financial intermediary (DSFI) status, the Anti-Money Laundering Ordinance (AMLO-FINMA) also had to be adjusted. 
• Furthermore, minor adjustments had to be made to the FINMA Collective Investment Schemes Bankruptcy Ordinance (CISBO-FINMA), with formal adjustments required to the FINMA Banking Insolvency Ordinance (BIO-FINMA) and the FINMA Financial Market Infrastructure Ordinance (FMIO-FINMA).
• The scope of FINMA Circular 2013/8 titled “Market conduct rules” has been adjusted to include portfolio managers, trustees, and managers of pension assets who are now subject to a FINMA authorization obligation.
• In FINMA Circular 2018/3 titled “Outsourcing–banks and insurers,” the administrative practice in respect of FinIA institutions (with the exception of portfolio managers and trustees) is now being specified.
• Other adjustments of a fairly minor nature were also made to the circulars on liquidity risk (2015/2), credit risk (2017/7), and accounting (2020/1) for banks.
• Circulars on securities dealers (2008/5), repo or securities lending and borrowing (SLB) transactions (2010/2), and distribution of collective investment schemes (2013/9) are being rescinded, as these are being made unnecessary by the FinSA and the FinIA.

Additionally, FINMA proposed to amend the client identification threshold values in its AMLO-FINMA from CHF 5,000 to CHF 1,000 for exchange transactions in cryptocurrencies. Through these measures, FINMA is implementing the international standards approved in mid-2019 and acknowledging the heightened money-laundering risks in this area. 

Related Links

• Press Release and Related Documents
• Key Points on Consultation (PDF)
• Draft FinIO-FINMA (PDF in German)
• Draft Amendments to FINMA Circulars (PDF in German)

Comment Due Date: April 09, 2020

Keywords: Europe, Switzerland, Banking, Securities, Insurance, Pensions, Proportionality, Credit Risk, Liquidity Risk, FINSA, FinIO-FINMA, Cryptocurrency, FINMA