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SFMA closes Wendelspiess Partners AG proceedings and orders industry bans

SFMA has completed proceedings against Wendelspiess Partners AG in liquidation and two individuals after serious breaches of conduct rules for financial services.

SFMA has concluded enforcement proceedings against Wendelspiess Partners AG in liquidation and two individuals for serious breaches of conduct rules in financial services. Long-term industry bans have been imposed on two responsible individuals.

Following a report from the relevant supervisory organisation, SFMA found signs that clients had been placed since 2021 in a foreign fund established and internally managed by Wendelspiess Partners AG. The fund was facing significant liquidity problems. There were also indications of weaknesses in risk disclosure, suitability checks and conflict-of-interest handling.

In early 2025, SFMA opened enforcement proceedings, appointed an investigating agent as a director of the company, froze accounts and custody accounts held by Wendelspiess Partners AG and barred the former directors from carrying out transactions.

Serious conduct-rule breaches

The investigation found that the fund invested mainly in an investment company domiciled in the canton of Zug and in related companies, and also granted loans to those companies. Wendelspiess Partners AG and several directors held shares in the fund, creating conflicts of interest that clients were not told about, or were told about only inadequately.

The fund was insufficiently diversified and created a significant concentration of risk. More than 400 clients, many with moderate or limited financial knowledge and many describing themselves as risk-averse, were not adequately informed of the investment risks.

Wendelspiess Partners AG also failed to assess whether the fund was suitable for each client. Almost all client assets were invested in the fund without client consent. At the end of 2024, the fund held more than CHF 83 million in assets under management and was facing the prospect of a total loss.

Long-term industry bans

SFMA has imposed long-term industry bans on two responsible individuals. Wendelspiess Partners AG in liquidation, now in bankruptcy, is also set to lose its licence as a portfolio manager. The ruling is not yet final and may be appealed to the Federal Administrative Court.