The product, a know-how collection entitled “ FinSA Q&A: Client Classification - CISA vs. FinSA ” consists of 9 questions and answers (" Q&As ") as well as 10 standard form templates developed by the UBS team of regulatory experts and provides you with the basis for adhering to the client classification requirements under the new Swiss Financial Services Act (" FinSA "). The Q&As provide a comparison of the FinSA client classification standard with the qualified investor classification concept under the former CISA. Your purchase gives you access to a know-how collection prepared by UBS and may serve as a basis for you to establish your best practices as a financial service provider. The Swiss regulatory standard for Client Classification The FinSA in its interplay with the Swiss Financial Institutions Act (“ FinIA ”) and the revised Swiss Collective Investment Schemes Act (“ revCISA ”) includes extensive requirements on how clients should be classified. The definitions and...Read more
The product, a know-how collection entitled “FinSA Q&A: Client Classification - CISA vs. FinSA” consists of 9 questions and answers ("Q&As") as well as 10 standard form templates developed by the UBS team of regulatory experts and provides you with the basis for adhering to the client classification requirements under the new Swiss Financial Services Act ("FinSA"). The Q&As provide a comparison of the FinSA client classification standard with the qualified investor classification concept under the former CISA.
Your purchase gives you access to a know-how collection prepared by UBS and may serve as a basis for you to establish your best practices as a financial service provider.
The Swiss regulatory standard for Client Classification
The FinSA in its interplay with the Swiss Financial Institutions Act (“FinIA”) and the revised Swiss Collective Investment Schemes Act (“revCISA”) includes extensive requirements on how clients should be classified. The definitions and procedures for classifying clients under the FinSA are complex and the practice is still developing. Proper client classification may hence be one of the top priorities in order to avoid regulatory and operational risks in this context.
These Q&As and sample forms are essential practical knowledge for those that provide financial services in Switzerland or to clients in Switzerland.
What you get
After you make your purchase, PartnerVine makes the Q&A available to you for download as a searchable pdf. The pdf includes both the Q&As and the forms and templates sold as part of the FinSA Q&A: Client Classification - CISA vs. FinSA. Below are two Q&As from this product so you can see a sample of what you will get:
Samples of the Q&A
What does the introduction of FinSA change with respect to the revCISA?
While FinSA is governing, inter alia, the provision of financial services to clients and the point of sale code of conduct duties (i.e. law on services), the revCISA is mostly a pure product law. This in contrast to the past where the superseded CISA also governed distribution related code of conduct duties.
Please note that due to the L-QIF, art. 10 (3ter) revCISA will be revised as follows (entry into force expected January 2022):
Art. 10 Abs. 3ter
Als qualifizierte Anlegerinnen und Anleger gelten auch Privatkundinnen und -kunden:
- für die eine der folgenden Personen im Rahmen eines auf Dauer angelegten Vermögensverwaltungs- oder Anlageberatungsverhältnisses Vermögensverwaltung oder Anlageberatung im Sinne von Artikel 3 Buchstabe c Ziffern 3 und 4 FIDLEG erbringt:
- ein Finanzintermediär nach Artikel 4 Absatz 3 Buchstabe a FIDLEG,
- ein ausländischer Finanzintermediär, der einer gleichwertigen prudenziellen Aufsicht untersteht wie der Finanzintermediär nach Ziffer 1,
- eine Versicherungseinrichtung nach dem Versicherungsaufsichtsgesetz vom 17. Dezember 2004; und
- die nicht schriftlich oder in anderer durch Text nachweisbarer Form erklärt haben, nicht als solche gelten zu wollen.
The provision is supplemented by private clients for which an insurance institution under the Insurance Supervision Act of 17 December 2004 (ISA) provides asset management or investment advice within the meaning of art. 3(c)(3) and (4) FinSA as part of a long-term asset management or investment advisory relationship. This is justified, especially since insurance institutions are allowed to provide appropriate services under the ISA on the basis of art. 11 ISA. They are also exempt from the obligation to obtain authorisation as managers of collective assets (art. 9(2) FinIO). Since asset management and investment advice are not activities under the ISA, insurance companies are subject to the FinSA (art. 2(2)(d)(1) FinSA e contrario) when providing these services.
For further information on the revised CISA please refer to the topic revCISA & other amended Laws.
Does the revised CISA still have its own client classifications?
The revised CISA has been reduced to a pure product law. All other elements have been transferred into FinSA and FinSO. What remains is which client is deemed as a qualified investor.
For further information on the revised CISA please refer to the topic revCISA and other amended Laws.
Who needs it
The FinSA Q&A: Client Classification- CISA vs. FinSA is for financial service providers providing their services in Switzerland or to clients in Switzerland. If you are a financial service provider, this product helps you understand the FinSA client classification requirements and implement them.
UBS Business Solutions AG ("UBS") is a wholly-owned subsidiary of the UBS Group AG. For more information on UBS, go to www.ubs.com.
Key features of this product include:
- Structured & easy-to-read. Structured in a reader-friendly, easy-to-access Q&A format that is aligned with the relevant regulations.
- Easy-to-understand. The language is practical and business friendly. The explanations in the text are accompanied by tables and graphics which make it easier to understand and communicate the regulations.
- Interconnected. The Q&As include references to related content in other modules of UBS' FinSA Q&A and third party content to help readers understand the issues.
- Categorization. All of the Q&As are categorized into specific topic groups which you can adapt to your individual needs.
- Upskilling your employees. Underlined terms are explained in the Glossary, which is a complementary product that comprises over 160 terms and definitions. Together with the Glossary, the Q&As provide knowledge management support not just for employees that know an issue well, but employees that need to learn about an issue, increasing expertise across your firm.
- Cost & time savings. You receive extraordinary value when you purchase this product. As your usage increases, your savings increase dramatically (see the Relative Advantage Calculator on the left hand side and the section below on the Relative Advantage Calculator, which will help you understand the value of this product).
- Valuable forms and templates. The forms and templates included with the product were prepared by UBS' regulatory team. The forms and templates in this product include:
- Opt-out form from retail to professional client for natural persons
- Opt-out form from retail to professional client for legal persons
- Opt-out form from retail to professional client for private investment vehicle
- Opt-out form from retail to institutional client for Swiss and non-Swiss CIS and ManCO
- Declaration of professional client status by client
- Declaration of professional client status by client advisor
- Opt-out form from professional to institutional client
- Opt-in form to retail client
- Opt-in form to professional client
- Declaration of institutional client status by client
The FinSA Q&A: Client Classification - CISA vs. FinSA gets rid of the need to research Swiss regulatory requirements regarding client classification and compare them with the former CISA classification rules. The Relative Advantage Calculator on this page shows a conservative use case, and the amount you would save compared to doing the tasks without the benefit of our product. For the calculator, we've taken an hour as the estimate for a lawyer charging CHF 450 per hour to research the answer to one of our Q&As. Our assumptions are conservative ones based on our experience. If you'd like to change our assumptions, you can do so in the calculator and run the number again. The value delivered by our product is meaningful in the vast majority of circumstances, and exceptional as your usage increases.
Circumstances of Use
This product is intended for Swiss financial service providers and financial institutions and provides general information on the FinSA and related laws as of the date of finalization. Our objective is to provide the UBS' perspective of the law in order to help support a better understanding of the new regulatory framework in Switzerland. This product can be used either for implementing the new regulatory framework or as the basis of your own internal knowledge management. This product is not for use outside of Switzerland.
- This product is provided to you only for use in Switzerland.
- You are required to pay for this product by invoice after you have received it. As digital products are so easily replicable, there is no right of rescission for this product and your obligation to pay is unconditional.
- This product is provided to you on a non-reliance basis. There is no guarantee that this product will address your particular facts and circumstances, and you will have no recourse to UBS or PartnerVine if you do not think it does.
- Use of this product does not create an attorney-client relationship with UBS Business Solutions AG or PartnerVine, nor should the product be considered a substitute for qualified legal advice. If you need advice tailored to your facts and circumstances, please consult qualified counsel.
- Your contract for this product is with UBS Business Solutions AG. You will not have recourse to PartnerVine in respect of your use and enjoyment of this product.
This product is a downloadable pdf. There is no additional support for this product.