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FinSA Q&A: FinIA - License Requirements

FinSA Q&A: FinIA - License Requirements

UBS Business Solutions AG

Date: October 12, 2021

This product consists of 13 Q&As on the license requirements of the FinIA.

PV10267
$688.46

Author's Note

The product, a know-how collection entitled “ FinSA Q&A: FinIA – License Requirements ” consists of 13 questions and answers (" Q&As ") developed by the UBS team of regulatory experts and provides you with the basis for understanding the general regulatory requirements of the FinIA. 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 institution. The License Requirements of the FinIA When applying the FinIA in its interplay with the Swiss Financial Services Act (“ FinSA ”) and the revised Swiss Collective Investment Schemes Act (“ revCISA ”) financial institutions also have to understand the pertaining license requirements. The rules in their interplay can be complex and the practice is still developing. A good understanding of this topic may hence be one of the top priorities in order to avoid regulatory and operational risks in this context. These Q&As are essential...

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The product, a know-how collection entitled “FinSA Q&A: FinIA – License Requirements” consists of 13 questions and answers ("Q&As") developed by the UBS team of regulatory experts and provides you with the basis for understanding the general regulatory requirements of the FinIA.

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 institution.

The License Requirements of the FinIA

When applying the FinIA in its interplay with the Swiss Financial Services Act (“FinSA”) and the revised Swiss Collective Investment Schemes Act (“revCISA”) financial institutions also have to understand the pertaining license requirements. The rules in their interplay can be complex and the practice is still developing. A good understanding of this topic may hence be one of the top priorities in order to avoid regulatory and operational risks in this context.

These Q&As are essential practical knowledge for financial institutions in Switzerland.

For a full overview of the questions covered by this product, see Questions answered by UBS' FinSA Q&A under the FinIA section.

What you get

After you make your purchase, PartnerVine makes the Q&A available to you for download as a searchable pdf. Below are two Q&As from this product so you can see a sample of what you will get:

Samples of the Q&A

Is it still possible as a natural person to obtain a FINMA license as portfolio manager or is this license only open to legal entities?

The license as a portfolio manager is open to: sole proprietorships (Einzelunternehmen); commercial enterprises (Handelsgesellschaften) and cooperatives (Genossenschaften) that have to be registered in the commercial register (art. 18 FinIA). Therefore it is not possible for a natural person to obtain a FINMA license without first setting-up one of the abovementioned entities.

How does the license requirement impact the registration process at the commercial register?

  1. General
    The name of the financial institution must not lead to confusion or deception according to art. 13(1) FinIA and therefore the terms portfolio manager, trustee, manager of collective assets, fund management company or securities firm may be used, alone or in compound terms, in the company name, in the description of its business purpose or in commercial documents only if the corresponding license has been provided by the FINMA (see art. 13(2) FinIA).
  2. New registration
    The commercial register will only register those financial institutions which submit the required license with their application (cf. art 5(2) FinIA). Hence, the applicant has to obtain the license before submitting the application for registration to the commercial register. 
  3. Already registered
    Art. 5(2) FinIA does not apply to financial institutions which are already entered in the commercial register (see art. 93(1) FinIO) and such financial institutions don’t need to submit the license to the commercial register. Only if they wish to change their name and/or purpose, they have to submit the license (Practice note from the Federal Office for Commercial Register 1/19).

 

Who needs it

The FinSA Q&A: FinIA – License Requirements is for financial institutions in Switzerland. If you are a financial institution, this product helps you understand the FinIA license requirements and implement them.

About UBS

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

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).

Relative Advantage

The FinSA Q&A: FinIA – License Requirements gets rid of the need to research Swiss regulatory requirements regarding these regulatory duties. 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 FinIA 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.

Important Terms

  • 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.

Support

This product is a downloadable pdf. There is no additional support for this product.




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