Switzerland has no trust in its own law. Yet professional trustees working from Switzerland need a FINMA licence. Both statements are true, and the combination confuses many people.
Who needs the licence
Anyone who, on a commercial basis, manages or disposes of a separate fund for the benefit of beneficiaries or for a specific purpose, on the basis of a trust deed. In practice: professional trustees administering foreign-law trusts from Switzerland.
The requirements
The regime is the same as for portfolio managers: a Swiss company, minimum share capital of CHF 100,000, qualified management, proper organisation, fit and proper people, affiliation to a supervisory organisation, and regular audits.
Why there is no Swiss trust
Switzerland recognises foreign trusts. It has applied the Hague Convention on the law applicable to trusts since 2007, so a trust governed by English, Jersey or Singapore law can be administered from Geneva or Zurich. What Switzerland does not have is a trust created under Swiss law. The Federal Council considered introducing one, and in 2023 decided to stop the project, mainly because of the tax questions.
So when someone offers you a “Swiss Trust”, ask a simple question: under which law is it created? If the answer is “Swiss law”, walk away. A Swiss company with the word “Trust” in its name is still just a company.
What nobody tells you
Trustee licences attract more scrutiny on the people than on the structure. FINMA, the supervisory organisation and the banks will all want to understand who the settlors and beneficiaries are, where the money comes from, and why the structure exists. A trustee business is only as clean as its client book.
Setting up or acquiring a trustee business in Switzerland? Contact FintechLex · insight@fintechlex.com
Last updated: October 2026. This article is general information, not legal advice.
