Update regarding the Financial Services Ordinance (FinSO) and the Financial Institutions Ordinance (FinIO)

The FinSO and the FinIO have entered into force on the 1st January 2020, bringing some changes into the calendar of entry into force of the new Swiss regulations regarding financial services and institutions. These new deadlines should now be definitive.

Applicability Date Regulations 
01.01.202019 FinSA : the restrictions regarding the use of clients instruments enter immediately into force, except for clients having granted an asset management mandate or for wealthy clients having declared in writing to be willing to be treated as qualified investors: for those clients, the banks have two years to terminate the relevant contractual relationship  
 69 FinSA : The requirements regarding advertisement enter into force 
 72 and 73 FinSA : Right to receive documents and procedure  
 74 § 3 FinIA : The asset managers and trustees creating a new business during the year starting the 01.01.2020 shall report immediately to the FINMA and must satisfy the requirements to obtain the licence immediately, except for (i) the obligation to formerly send the request of the licence and (ii) the affiliation to a supervisory body (article 7 § 2) which both become mandatory one year after the FINMA will have approved such supervisory body  In order to start their operations, assets managers and trustees must be affiliated to an SRO, until they receive their licence 
 6a CISO / 144 § 6 CISO : Financial intermediaries need to notify their relevant clients (those who receive asset management or advisory services, who have not declared that this new provision was not applicable to them) that they will be considered as qualified investors starting on 01.01.2020, at the occurrence of the first contact with clients, or at the latest within two-years. 
01.07.202077 and 95 § 3 FinSA / 108 FinSO and 74 FinIA and 93 § 2 FinIO : Affiliation to a mediation body (or within 6 month of a competent mediation body being recognised or created by the Federal Council)  
 31 and 95 § 2 FinSA / 107 FinSO : The 6 month transitional period to be obliged to register in the new Financial Advisers Register will start to run after such a Financial Advisers register has been approved by the FINMA or created by the Federal Council 
 74 § 2 FinIA : Service providers newly subject to a licence requirement must report to the FINMA (they will have 3 years to comply with the requirements and request the licence)  In order to continue their operations, assets managers and trustees must be affiliated to an SRO, until they receive their licence Regarding financial service providers who were “authorised” as financial intermediaries directly subject to the FINMA supervision, article 74 § 2 applies The latter will not be obliged to be affiliated to an SRO if, until the 31.12.2020 : They receive confirmation by a supervisory body that they can be affiliated, and They submit their licence requirement to the FINMA 
01.10.202095 FinSA / 109 FinSO : the requirement to publish a prospectus for newly issued securities will enter into force, unless the FINMA has approved the reviewing body after the 1st April 2020. In such case this provision will enter into force at the end of a 6 month period after such approval  
01.01.20224 FinSA / 103 FinSO : Clients segmentation 
 6 FinSA / 104 FinSO : Sufficient knowledge for clients’ advisers  
 7 to 18 FinSA / 105 FinSO : Rules of conduct – duty to inform, to assess, to document and to report  The financial service providers willing to comply with the provisions contained within articles 7 to 18 FinSA prior to the two-years deadline shall notify in writing and on an irrevocable basis their audit company, indicating the selected date. Transition to the new regime must relate to all the provisions 
 19 FinSA / 105 § 6 FinSO : Entry into force of the prohibition to enter into short selling transactions with the private clients financial instruments  
 21 to 27 FinSA / 106 FinSO : Organisational requirements The financial service providers willing to comply with the provisions contained within articles 21 to 27 FinSA prior to the two-years deadline shall notify in writing and on an irrevocable basis their audit company, indicating the selected date. Transition to the new regime must relate to all the provisions 
 95 FinSA / 110 FinSO : End of the grace period allowing to remit a Simplified Prospectus in lieu of KID for property funds, transferable securities funds and other fund investing in standard assets 
 95 FinSA / 111 FinSO : End of the grace period allowing to remit a Simplified Prospectus in lieu of KID for structured products 
 95 FinSA / 111 FinSO : for the other financial instruments, obligation to remit a KID for instruments offered after the 01.01.2020. 
 74 FinIA : already licensed financial service providers shall comply with the FinIA requirements  
 95 § 4 FinSA : requirements in terms of prospectus and KID for products offered before the entry into force of the law  
01.01.202374 § 2 FinIA : financial service providers newly subject to the licence requirements must conform with the FinIA requirements and submit their licence request to the FINMA