The Swiss Financial Market Supervisory Authority (FINMA) has released an update on the status of portfolio manager licences.。

FINMA noted that as of December 31, 2023, the bureau had approved 1,149 (70%) licensing applications for portfolio managers and trustees received before December 31, 2022, while 63 institutions (4%) had withdrawn their applications.。The remaining 487 applications (26%) were complex and took longer to finalize.。

An institution that continues to be affiliated with a self-regulatory organization may continue to operate if it submits a licence application to FINMA and proof of affiliation with a regulatory organization (SO) before the end of the transition period。A large number of applications for change requiring authorization (994) were submitted in 2023, which means a lot of work for FINMA。

FINMA also reported that from now on, if the trust assets exceed CHF 5 million at any time, the trustee will be considered a commercial operation and will need to be licensed because the trust assets are financially separate from the trustee, i.e. assets belonging to third parties.。Trustees who must obtain a licence under the Financial Investment Act in the future must submit a licence application by the end of 2024。

In the two-tier regulatory model of portfolio managers and trustees, state-owned institutions are responsible for the ongoing supervision of portfolio managers and trustees.。The Monetary Authority is responsible for approving any changes affecting licensing requirements, implementing enhanced regulation and taking remedial measures to restore compliance with the law by regulated institutions.。

This division of responsibilities requires a considerable degree of coordination, especially when five State-owned agencies are currently authorized。The regulatory levy reflects the work inherent in the two-tier regulatory model of the Monetary Authority。