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Old 29.03.2020, 11:37
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Regulation of 'financial advice' firms

Hi all, I would like confirmation that financial advice firms based in Switzerland don't seem to need to be FINMA-registered, or are regulated by any other bodies?

Example of these firms would be Guardian WM etc, the kind which cold calls expats.

As I checked on FINMA, it only seems to apply to asset-managers, which I assume they claim they are not an asset manager.

The other thing I saw that does require FINMA registration but with minimum oversight is if they are an 'insurance intermediary'

On a second point, I'm also wondering why they only target foreign nationals in Switzerland not not Swiss nationals.......surely for residents here, the legal jurisdiction of financial services is the same as for Swiss nationals
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Old 29.03.2020, 11:39
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Re: Regulation of 'financial advice' firms

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Hi all, I would like confirmation that financial advice firms based in Switzerland don't seem to need to be FINMA-registered, or are regulated by any other bodies?

Example of these firms would be Guardian WM etc, the kind which cold calls expats.

As I checked on FINMA, it only seems to apply to asset-managers, which I assume they claim they are not an asset manager.

The other thing I saw that does require FINMA registration but with minimum oversight is if they are an 'insurance intermediary'

On a second point, I'm also wondering why they only target foreign nationals in Switzerland not not Swiss nationals.......surely for residents here, the legal jurisdiction of financial services is the same as for Swiss nationals
Never work with anyone that cold calls you. And yes, the same rules apply for residents as for Swiss people.

They target us probably because they think we are not aware of the rules and regulations here?
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Old 29.03.2020, 12:14
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Re: Regulation of 'financial advice' firms

I don't even take advice from UBS or CS.
However, I do read their finance reports for amusement.
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Old 29.03.2020, 12:44
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Re: Regulation of 'financial advice' firms

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I'm also wondering why they only target foreign nationals in Switzerland not not Swiss nationals.......surely for residents here, the legal jurisdiction of financial services is the same as for Swiss nationals
The angle they take in their sales narrative is to focus on trying to make expats feel afraid and greedy at the same time. They specifically zoom in on pensions savings accrued outside of Switzerland and make wild claims about vague tax exposure and that they have a way to help you avoid this, while making you lots of money.

Anyone willing to spend a single minute of their time, never mind entrust their entire future retirement savings into the hands of a cold-calling, unqualified, totally compromised employee of an unregulated boiler room.....needs to give their head a wobble.
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Old 29.03.2020, 13:33
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Re: Regulation of 'financial advice' firms

Under the new FINIG/FIDLEG regulations, started in Jan 2020 and to be implemented by 2022 all these activities (not only fund management) will need to be run out of a FINMA registered entity. Unless they are already regulated by their home regulator and passported to offer advice in CH.
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Old 29.03.2020, 17:46
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Re: Regulation of 'financial advice' firms

Thanks for the v useful information Dutch!

For the others who replied, thanks for your contributions and of course I'm well aware of how they operate and wouldn't ever do business with them. But after a new spate of cold calls lately from new/random ones, I thought I'd clarify the legal situation in case I could possibly report them, vs just putting the phone down
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Old 29.03.2020, 17:52
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Re: Regulation of 'financial advice' firms

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Under the new FINIG/FIDLEG regulations, started in Jan 2020 and to be implemented by 2022 all these activities (not only fund management) will need to be run out of a FINMA registered entity. Unless they are already regulated by their home regulator and passported to offer advice in CH.
Wondering if anyone would have any specific links or information about how this applies to financial advisors per se?

I found a link here, but it refers to 'Independent Asset Managers', which again is perhaps something different than 'Independent Financial Advisors' (?)

https://blogs.deloitte.ch/banking/20...ow-and-do.html
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Old 29.03.2020, 18:48
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Re: Regulation of 'financial advice' firms

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Wondering if anyone would have any specific links or information about how this applies to financial advisors per se?

I found a link here, but it refers to 'Independent Asset Managers', which again is perhaps something different than 'Independent Financial Advisors' (?)

https://blogs.deloitte.ch/banking/20...ow-and-do.html
An asset manager has nothing to do with an Insurance Salesman, which is what most financial advisors are.
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Old 29.03.2020, 19:06
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Re: Regulation of 'financial advice' firms

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An asset manager has nothing to do with an Insurance Salesman, which is what most financial advisors are.
Exactly......hence wondering about what if any jurisdiction they are bound by
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Old 29.03.2020, 21:06
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Re: Regulation of 'financial advice' firms

Just a quick link here and a google translate of one part of upcomng regulation from this link.

Entry in the register of consultants

In principle, mere investment advice remains possible without a permit even under FIDLEG / FINIG. However, certain customer advisors have to be registered in a consultant register and are subject to all conduct requirements in accordance with FIDLEG / FIDLEV, including their penal provisions. This applies to customer advisors from unsupervised domestic financial service providers (especially pure investment advisors) and from foreign financial service providers. Only the customer advisors themselves are subject to the obligation to register, not their employers. Customer advisors / employees of supervised domestic financial service providers such as banks, insurance companies and authorized asset managers are particularly exempt from registration.
In order to be entered in the register, the customer advisor must demonstrate the following in particular:
  • Expertise and knowledge of the FIDLEG code of conduct;
  • Professional liability insurance or equivalent financial security;
  • Connection to ombudsman; and
  • no entry in the criminal record due to property crimes and no FINMA ban or activity due to violation of supervisory regulations.
The registrar can delete a consultant from the register if he or she no longer meets the requirements.
Client advisors must report to a registry for entry in the registry within six months of the law coming into force. FIDLEV grants a transition period of one year after the entry into force for the fulfillment of the required knowledge. There are likely to be multiple registrars for client advisors. They will probably not be approved by FINMA until the end of 2019 or 2020.
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Old 30.03.2020, 10:08
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Re: Regulation of 'financial advice' firms

Thanks, very useful! The only vague statement in that article is about the 'certain customer advisors' that have to register. Which still leaves it open-ended about these 'independent financial advisors', however it may give them more things to worry about given the area in which they operate
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Old 30.03.2020, 10:40
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Re: Regulation of 'financial advice' firms

block spam calls:

iphone https://support.apple.com/en-us/HT207099
android https://www.androidauthority.com/how...-calls-855621/
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