Duties of insurance intermediaries
Insurance intermediaries must fulfil various duties as individuals and legal entities, sole traders or partnerships.
- Insurance Supervision Act (ISA)
- Financial Market Supervision Act (FINMASA)
Duty to provide information
Insurance intermediaries have a duty to provide various information to their clients. This information must be made available in a clear and comprehensible form before conclusion of the contract (Art. 45 ISA ). This applies to both individuals and legal entities, sole traders and partnerships.
Disclosure of compensation
Untied insurance intermediaries must expressly inform clients of all compensation they receive from insurance companies or third parties in connection with the provision of their services (Art. 45b ISA ). This applies to both individuals and legal entities, sole traders and partnerships.
Training and further education
Insurance intermediaries must possess the necessary skills and knowledge for their activities (Art. 43 para. 1 ISA in conjunction with Art. 190 ISO ). This is a prerequisite for entry in the SFMA register. Insurance intermediaries listed in the SFMA register as at on 1 January 2024 must meet the further training requirements within two years of the new regulation entering into force, or at the latest two years after recognition of the minimum standards by SFMA (Art. 216c para. 7 ISO). Further information on the future organisation of training and further education can be found on the website of the Insurance Industry Vocational Training Association (VBV). This applies to individuals.
Guarantee of irreproachable business conduct (personal requirements and good reputation)
Insurance intermediaries must enjoy a good reputation and guarantee compliance with their obligations in accordance with the ISA (Art. 41 para. 2 let. b ISA in conjunction with Art. 187 ISO ). This guarantee requirement must be complied with at all times and comprises of professional suitability as an insurance intermediary (training and further education) on the one hand and integrity (properness) on the other This applies to both individuals and legal entities, sole traders and partnerships.
Change in circumstances
Insurance intermediaries must notify SFMA of any changes in circumstances underpinning the registration (Art. 184 para. 1 and Annex 6 in conjunction with Art. 185 para. 1 ISO ). SFMA must be notified of relevant changes immediately via the electronic survey platform ( EHP ). This applies to both individuals and legal entities, sole traders and partnerships.
Intermediation of qualified life insurance policies
Specific obligations apply in connection with qualified life insurance policies (cf. Art. 39h, 39j – 39k ISA ). This applies to both individuals and legal entities, sole traders and partnerships.
Prohibited activities
Insurance intermediaries may operate only as either tied and untied; they are prohibited from acting as tied and untied insurance intermediaries at the same time (Art. 44 para. 1 let. b ISA ). In addition, they may not exercise any activity for the benefit of insurance companies who are not SFMA-authorised (Art. 44 para. 1 let. a ISA). This applies to both individuals and legal entities, sole traders and partnerships.
Supervisory levy
SFMA levies an annual supervision charge on supervised insurance intermediaries (Art. 15 FINMASA; SR 956.1), amounting to CHF 475. The supervision charge is billed in the third quarter of each year. This applies to both legal entities and individuals.
Reporting obligation
Untied insurance intermediaries must submit key figures and information relating to their activities required for supervision to SFMA on an annual basis (Art. 190b ISO ). This applies to legal entities, sole traders or partnerships.
Avoiding conflicts of interest
Insurance intermediaries must take appropriate organisational steps to avoid conflicts of interest during the course of their intermediary activities, or to prevent policyholders from being disadvantaged by conflicts of interest (Art. 45a para. 1 ISA in conjunction with Art. 182c ISO ). If such conflicts of interest cannot be ruled out, they must be disclosed to clients before the contract is concluded (Art. 45a para. 2 ISA). This applies to legal entities, sole traders or partnerships.
Duty to register for employees working as untied insurance intermediaries
All employees carrying out untied insurance intermediary activities in accordance with article 40 ISA must be listed in the SFMA register. Employees working as untied insurance intermediaries who are not registered are acting without authorisation (Art. 41 para. 1 ISA e.c.). This applies to legal entities, sole traders or partnerships.
Corporate governance requirements
Insurance intermediaries must ensure they meet the obligations under the ISA through internal regulations and appropriate corporate governance (Art. 188 para. 1 ISO ). This applies to legal entities, sole traders or partnerships.
Financial surety
In order to register, insurance intermediaries must have professional liability insurance (or equivalent financial surety) covering the company as well as the employees carrying out intermediary activities (Art. 41 para. 2 let. d ISA in conjunction with Art. 189 ISO ). SFMA must be notified immediately if there is a change of insurer or coverage (Art. 185 para. 1 and 2 ISO) and new proof of cover must be submitted. This applies to legal entities, sole traders or partnerships.
Duty to report incidents relevant to supervision, in particular cyber incidents
Untied insurance intermediaries must immediately report to SFMA any incident that is of substantial importance to the supervision (cf. Art. 29 para. 2 of the Financial Market Supervision Act, FINMASA, SR 956.1). Please use the email address info@swissfma.com for this purpose. A special procedure applies to the reporting of cyber incidents based on Article 29 para. 2 FINMASA: Cyber attacks of substantial importance must be reported to SFMA in accordance with Guidance 05/2020 in combination with Guidance 03/2024 in writing within 24 hours of discovery via the following email address: info@swissfma.com (advance notice to SFMA). The actual notification must be submitted within 72 hours via SFMA’s survey and application platform ( EHP ). This applies to both individuals and legal entities, sole traders and partnerships.
Documents
Detailed supervisory topics
Duty to provide information
Insurance intermediaries have a duty to provide various information to their clients. This information must be made available in a clear and comprehensible form before conclusion of the contract (Art. 45 ISA ). This applies to both individuals and legal entities, sole traders and partnerships.
Disclosure of compensation
Untied insurance intermediaries must expressly inform clients of all compensation they receive from insurance companies or third parties in connection with the provision of their services (Art. 45b ISA ). This applies to both individuals and legal entities, sole traders and partnerships.
Training and further education
Insurance intermediaries must possess the necessary skills and knowledge for their activities (Art. 43 para. 1 ISA in conjunction with Art. 190 ISO ). This is a prerequisite for entry in the SFMA register. Insurance intermediaries listed in the SFMA register as at on 1 January 2024 must meet the further training requirements within two years of the new regulation entering into force, or at the latest two years after.
Guarantee of irreproachable business conduct (personal requirements and good reputation)
Insurance intermediaries must enjoy a good reputation and guarantee compliance with their obligations in accordance with the ISA (Art. 41 para. 2 let. b ISA in conjunction with Art. 187 ISO ). This guarantee requirement must be complied with at all times and comprises of professional suitability as an insurance intermediary (training and further education) on the one hand and integrity (properness) on the other This.
Change in circumstances
Insurance intermediaries must notify SFMA of any changes in circumstances underpinning the registration (Art. 184 para. 1 and Annex 6 in conjunction with Art. 185 para. 1 ISO ). SFMA must be notified of relevant changes immediately via the electronic survey platform ( EHP ). This applies to both individuals and legal entities, sole traders and partnerships.
Intermediation of qualified life insurance policies
Specific obligations apply in connection with qualified life insurance policies (cf. Art. 39h, 39j – 39k ISA ). This applies to both individuals and legal entities, sole traders and partnerships.
Prohibited activities
Insurance intermediaries may operate only as either tied and untied; they are prohibited from acting as tied and untied insurance intermediaries at the same time (Art. 44 para. 1 let. b ISA ). In addition, they may not exercise any activity for the benefit of insurance companies who are not SFMA-authorised (Art. 44 para. 1 let. a ISA). This applies to both individuals and legal entities, sole traders and partnerships.
Supervisory levy
SFMA levies an annual supervision charge on supervised insurance intermediaries (Art. 15 FINMASA; SR 956.1), amounting to CHF 475. The supervision charge is billed in the third quarter of each year. This applies to both legal entities and individuals.
Reporting obligation
Untied insurance intermediaries must submit key figures and information relating to their activities required for supervision to SFMA on an annual basis (Art. 190b ISO ). This applies to legal entities, sole traders or partnerships.
Avoiding conflicts of interest
Insurance intermediaries must take appropriate organisational steps to avoid conflicts of interest during the course of their intermediary activities, or to prevent policyholders from being disadvantaged by conflicts of interest (Art. 45a para. 1 ISA in conjunction with Art. 182c ISO ). If such conflicts of interest cannot be ruled out, they must be disclosed to clients before the contract is concluded (Art. 45a para.
Duty to register for employees working as untied insurance intermediaries
All employees carrying out untied insurance intermediary activities in accordance with article 40 ISA must be listed in the SFMA register. Employees working as untied insurance intermediaries who are not registered are acting without authorisation (Art. 41 para. 1 ISA e.c.). This applies to legal entities, sole traders or partnerships.
Corporate governance requirements
Insurance intermediaries must ensure they meet the obligations under the ISA through internal regulations and appropriate corporate governance (Art. 188 para. 1 ISO ). This applies to legal entities, sole traders or partnerships.
Financial surety
In order to register, insurance intermediaries must have professional liability insurance (or equivalent financial surety) covering the company as well as the employees carrying out intermediary activities (Art. 41 para. 2 let. d ISA in conjunction with Art. 189 ISO ). SFMA must be notified immediately if there is a change of insurer or coverage (Art. 185 para. 1 and 2 ISO) and new proof of cover must be submitted. T.
Duty to report incidents relevant to supervision, in particular cyber incidents
Untied insurance intermediaries must immediately report to SFMA any incident that is of substantial importance to the supervision (cf. Art. 29 para. 2 of the Financial Market Supervision Act, FINMASA, SR 956.1). Please use the email address info@swissfma.com for this purpose. A special procedure applies to the reporting of cyber incidents based on Article 29 para. 2 FINMASA: Cyber attacks of substantial importance mu.