Timetable for implementationof the FinSA / FinIA
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This gives Switzerland a balanced and up-to-date overall policy in the area of investor protection. Among other things, the FinIA will close the gaps that remain in the supervision of portfolio managers. The FinSA, in turn, governs the entire relationship between financial services providers and clients at the point of sale under a single law.
Financial services providers will therefore soon be subject to new rules and duties which must be implemented. The individual duties under the FinSA are subject to variable transitional periods, which can in principle be divided into three categories: a two-year transitional period starting from 1 January 2020 applies for the majority of the duties. Other duties, however, are subject to a transitional period of six months starting from the time of a certain event. Only a few duties have no transitional period and will come into force on 1 January 2020. The following table provides an overview of the transitional periods for individual duties.
Transitional periods for FinSA
| Duty under FinSA | Statutory provision | Legal basis transitional period | No transitional period: mandatory by 1.1.2020 | Variable transitional period 6 months from appointed date | Transitional period 2 years from entry into force of FinSA/ FinSO: mandatory by 1.1.2022 |
| Client segmentation | Art. 4 FinSA | Art. 103 FinSO | ● | ||
| Required knowledge for client advisors | Art. 6 FinSA | Art. 104 FinSO | ● | ||
| Rules of conduct | Art. 7-18 FinSA | Art. 105 FinSO | ●[1] | ||
| Appropriate organisational measures | Art. 21-27 FinSA | Art. 106 FinSO | ●[2] | ||
| Duty to register for client advisors | Art. 28 FinSA | Art. 95 para. 2 FinSA / Art. 107 FinSO | ●[3] | ||
| Indication of advertising | Art. 68 FinSA | ● | |||
| Provision of documents | Art. 72-73 FinSA | ● | |||
| Duty of affiliation with an ombudsman’s office | Art. 77 FinSA | Art. 95 para. 3 FinSA / Art. 108 FinSO | ●[4] | ||
| General duty to publish prospectus | Art. 35 et seq. FinSA | Art. 95 para. 4 FinSA / Art. 109 FinSO | ●[5] | ●[5] | |
| KIDs for real estate funds, securities funds and other funds for traditional investments, which will be offered to private clients after entry into force of FinSA | Art. 58 et seq. FinSA | Art. 95 para. 4 (b) FinSA / Art. 110 FinSO | ●[6] | ||
| KIDs for structured products, which will be offered to private clients after entry into force of FinSA | Art. 58 et seq. FinSA | Art. 111 para. 1 FinSO | ●[7] | ||
| KIDs for other financial instruments, which will be offered to private clients after entry into force of FinSA | Art. 58 et seq. FinSA | Art. 111 para. 2 FinSO | ● | ||
| Alignment SESTA / CISA / CISO with FinSA / FinSO | Art. 95 para. 4 FinSA / Art. 105 para. 3 FinSO / Art. 144 CISO | ●[8] |
KID: Key Information Document
SESTA: Federal Act on Stock Exchanges and Securities Trading, Stock Exchange Act (SR 954.1)
CISA: Federal Act on Collective Investment Schemes, Collective Investment Schemes Act (SR 951.31)
CISO: Ordinance on Collective Investment Schemes, Collective Investment Schemes Ordinance (SR 951.311)
[1] If financial services providers wish to fulfil these duties prior to the two-year deadline following the entry into force of the FinSO, they must irrevocably inform their auditor thereof in writing, indicating the chosen point in time. (Art. 105 para. 2 FinSO).
[2] If financial services providers wish to fulfil these duties prior to the two-year deadline following the entry into force of the FinSO, they must irrevocably inform their auditor thereof in writing, indicating the chosen point in time. (Art. 106 para. 2 FinSO).
[3] If there is no corresponding registration body in place when the FinSA comes into force, the duty of affiliation will come into effect from the time a registration body is approved by FINMA or from the time a registration body is designated by the Federal Council.
[4] If there is no corresponding ombudsman’s office in place when the FinSA comes into force, the duty of affiliation will come into effect from the time the ombudsman’s office has been recognised by the FDF or from the time an ombudsman’s office has been established by the Federal Council.
[5] Please consult the Explanatory Report.
[6] For two years after the FinSA has come into force, a simplified prospectus as set out in Annex 2 / 3 CISO can be drawn up and published instead of a KID as set out in Annex 9 FinSO.
[7] For two years after the FinSA has come into force, a simplified prospectus pursuant to Art. 5 para. 2 CISA can be drawn up and published instead of a KID as set out in Annex 9 FinSO.
[8] Ensures the extension of the existing rules in the area of best execution and collective investment schemes until implementation of the FinSA / FinSO or until the end of the two years following the entry into force of the FinSA / FinSO.