SWI FINMA consulted on draft circular re Financial Services Act's conduct obligations.
Main Points
Circular will stop the inconsistent implementation of the Financial Services Act conduct requirements that SWI FINMA has observed in the supervisory practice of entities.
SWI FINMA is setting out its supervisory practice on key questions of interpretation.
It creates transparency, legal certainty and a comparable level of investor protection.
Details on the way in which customers should be informed to make informed decisions.
Those include transparency about the type of financial service, in particular the difference between transaction- and portfolio-related investment advisory services.
Transparency re the risks associated with financial instruments or financial services.
Transparency re conflicts of interest, third party compensation and retrocessions.
Available online is the draft's explanatory report and a summary of main points.
Effectiveness
Comments can be submitted via email until Jul. 15, 2024.
In Jul. 2024, SWI SBA criticized SWI FINMA draft circular on conduct, see #219075.
Nov. 2024 Circular Published
On Nov. 22, 2024, SWI FINMA published Circular 2025/2 of Oct. 31, 2024, on rules of conduct under the Financial Services Act (FIDLEG) by financial service providers.
Information on supervisory practice on how customers should be informed so that they can make their investment decisions with full knowledge of the facts and transparency.
Details re obligation to provide information, verification of suitability and adequacy, use of clients’ financial instruments, conflicts of interest, remuneration from third parties.
The circular enters into force on Jan. 1, 2025; a transitional period of six months, until Jun. 30, 2025, applies to the implementation of points 8, 9-12, 24-25, 26.
