An Ombudsman Office for Whom

Obligation of Affiliation

According to art. 77 of the Financial Services Act (FinSA), once the law enters into force, financial service providers will need to be affiliated to an Ombudsman Office by the time they initiate their activities, at the latest. 

A financial service provider is defined as persons who provide financial services in Switzerland or to customers in Switzerland on a professional basis; any independent economic activity exercised in order to obtain a regular income is considered to be exercised on a professional basis.

Financial services are defined as the following activities provided to a client

  • Buying or selling securities

  • Order Execution

  • Wealth/Asset Management 

  • Investment Advice

  • Granting loans to execute transactions on financial instruments

Advisers are natural persons who provide financial services on behalf of financial service providers or as financial service providers. These include financial services providers who are not subject to prudential supervision or authorisation by the FINMA. 

Clients can fall in one of the following 3 segments:

  • Private clients

  • Professional clients

  • Institutional clients

Foreign Fund Managers who offer their products to clients in Switzerland, whether they are private, professional or institutional, are also subject to the obligation of affiliation, as well as the client advisors who offer such products. 

The Financial Institutions Act (FinIA) introduces the same obligation of affiliation to activities that may not fall under FinSA, such as Trustees who do not also provide financial services.

 

The Precious Metals Control Act  (PMCA) also introduces an obligation of affiliation for Precious Metal Essayers.

Who can be affiliated with FINSOM?

Any financial services provider who does not have a banking or insurance licence can be affiliated to FINSOM.  

 

This namely includes but not limited to professionals of the following branches, who do not have a banking or insurance licence: 

  • Independent Wealth Managers

  • Trustees 

  • Collective Asset Managers 

  • Fund Managers 

  • Securities Firms 

  • Precious Metals Assayers 

  • Client Advisors 

Affiliation at FINSOM will be possible on an individual basis either directly at FINSOM or through an organisation designated by FINSOM.

©2019 by FINSOM