Since 2020, anyone who advises clients in Switzerland on financial instruments without being supervised by FINMA faces a simple rule: register first, then advise. The Financial Services Act (FinSA) created a register of client advisers, and an adviser who must be in it may not work in Switzerland until he is.
It catches more people than most expect, especially foreign advisers who travel to Switzerland or serve Swiss clients by email. This guide is part of our guide to doing financial business in Switzerland.
Who must register
The duty applies to the client adviser: the individual who provides financial services to clients, either on behalf of a firm or on his own account. It applies to:
- advisers of Swiss financial service providers that are not supervised by FINMA, including self-employed advisers;
- advisers of foreign financial service providers who serve clients in Switzerland, unless the exemption below applies.
Who does not need to register
- Advisers of FINMA-supervised firms: banks, securities firms, portfolio managers and trustees with a FINMA licence, and Swiss branches of foreign providers. Their supervision replaces the register.
- Advisers of foreign providers that are supervised in their home country and serve only professional or institutional clients in Switzerland. Both conditions must be met. A private client who opts out to professional status does not count: serve him, and the exemption is lost.
- Staff without client contact, such as back-office and support functions.
When is a service provided “in Switzerland”?
When the client is in Switzerland, whether you meet him in Geneva or write to him by email from abroad. The main exception is a relationship started at the client’s own, express initiative: services provided on that basis are not considered provided in Switzerland. It is an exception, not a strategy, and it must be documented.
The requirements
- Knowledge: sufficient knowledge of the FinSA rules of conduct and of the expertise the work requires. The registration body checks it from documents, and may hold an interview.
- Insurance: professional liability insurance, or equivalent financial security.
- Ombudsman: the financial service provider must be affiliated with an ombudsman recognised by the Federal Department of Finance. The ombudsman is shown in the register.
Registration must be completed before the first service in Switzerland, and the adviser must report any change in the facts on which the registration is based.
Where to register
Not with FINMA. FINMA authorises the registration bodies, and the registration bodies decide who is entered and who is removed. There are three: Regservices, ARIF and RegFix. Each publishes a search tool, so clients can check whether an adviser is registered.
Registered is not supervised
The register is an entry ticket, not a licence. A registered adviser is not supervised by FINMA, and the FinSA rules of conduct apply to him in full: informing clients, checking suitability and appropriateness, documenting the advice and managing conflicts of interest. And if the business moves from advice to managing client assets, the register is no longer enough: that needs the portfolio manager licence. For the full picture, see SRO or Licence: Which Do You Need? and How Swiss Financial Regulation Works.
For foreign firms: three options
| Option | When it fits |
|---|---|
| Exemption | You are supervised at home and serve only professional or institutional clients in Switzerland. |
| Register your advisers | You serve Swiss private clients from abroad, occasionally or regularly. |
| Swiss presence | Switzerland becomes a real market: a branch or a licensed Swiss company. |
Ask us which option fits your firm, or write to insight@fintechlex.com.
This article is for general information only and does not constitute legal advice.
