The Switzerland-based financial regulator, the Financial Market Supervisory Authority (FINMA), has granted FINcontrol Suisse AG a license. With this license, FINcontrol Suisse can now operate as a supervisory organization. Through doing so, the Swiss regulator is authorizing the fourth-ever supervisory organization under both FinSA and FinIA. According to the announcement, this license has been put in effect as of the 29th of September, 2020.
Latest Member Of The Group
This supervisory organization will stand as a responsible entity in regard to the supervision of trustees and portfolio managers in the future. Alongside this, FINMA has made it clear that it had already received more license applications from various supervisory organizations.
As was reported earlier, FINMA had previously granted this supervisory organization license to one Organisme de Surveillance pour Intermédiaires Financiers & Trustees, or SO-FIT. This license went into effect on the 11th of August, 2020. The company is set up in Geneva, and the regulator will recognize SO-FIT as a self-regulatory organization, as well. The license application from SO-FIT itself was submitted by one Organisme d’Autorégulation des Gérants de Patrimoine (OAR-G). OAR-G will be succeeded by SO-FIT, in turn.
The Previous Licensing
Prior to this, the Swiss regulator had granted Organisme de Surveillance des Instituts Financiers, or OSIF, and Organisation de Surveillance Financière (OSFIN) each a license, as well. OSFIN, in particular, is based within Neuchâtel, with OSIF being based in Geneva, alongside SO-FIT. These two parties had their licenses take effect on the 8th of July, 2020.
These organizations can act as supervisors thanks to the Financial Services Act (FinSA) and the Financial Institutions Act (FinIA), which have both become subject to new regulations. FINMA now mandates that all independent trustees and portfolio managers must first be authorized to operate by the regulator itself. Even so, Supervisory Organizations (SOs) will monitor these parties, as well, and will make sure these independent parties are compliant with the obligations stipulated in both FinSA and FinIA. Alongside this, these SOs will ensure compliance with AMLA rules, as well.
These SOs must, in turn, first be authorized, and subsequently supervised, by FINMA itself. Should there be any violations, FINMA will be responsible for enforcing the Swiss financial market law.
With this, Switzerland is gearing to renew its spot of financial dominance in the world at large, as the country is very well known for its banking expertise. With any luck, this will only prove fruitful for the country at large.