Authorisation

Companies, individuals and financial products need the right form of SFMA authorisation before they may carry out regulated activity in the Swiss financial market. The authority assesses whether the applicant has the financial resources, organisation, governance and qualified people required by law.

Swiss financial market legislation contains several permission regimes. Depending on the business model, a person or entity may need a licence, recognition, registration, approval of product documents or another formal decision before activity can begin. Once authorisation has been granted, the applicant becomes part of the regulated perimeter and must continue to meet the relevant requirements.

Types of authorisation

The legal framework uses different authorisation categories. Some activities, such as banking, securities trading, insurance or fund management, generally involve a full licence and ongoing prudential supervision. Other cases require recognition, registration or approval, for example for certain self-regulatory bodies, product documents, tariffs or specialised market functions. The intensity of supervision depends on the risk and nature of the activity.

Authorisation requirements

The applicable requirements are set out in the sector-specific financial market laws and ordinances. They differ by business area, but typically cover capital, risk management, internal controls, fit and proper governance, adequate staffing, outsourcing arrangements, auditability and compliance with anti-money laundering duties. Applicants must show that the planned activity is organised in a stable, transparent and legally compliant way.

Monitoring after approval

Authorisation is not a one-time formality. Regulated firms must inform SFMA of material changes, maintain the conditions on which the authorisation was based and cooperate with supervision. If requirements are no longer met, SFMA can order corrective measures and, where necessary, open enforcement proceedings. In serious cases the authority may restrict, suspend or withdraw an authorisation, recognition, approval or registration.

Authorisation topics

The main authorisation areas are types of authorisation, banks and securities firms, insurers, asset management, portfolio managers and trustees, supervisory organisations and financial market infrastructures and foreign market participants.