In order to be entered in the Swiss Client Advisor Register of BX Swiss AG, client advisors must prove that they have a professional liability insurance policy or other financial securities.
Professional Liability Insurance (Art. 29 para. 1 (b) FinSA and Art. 32 FinSO)
- Insurance policy holder
The insurance policyholder is the client advisor or the financial services provider for whom the client advisor works.
- Scope of the insurance
- The legal liability for financial losses arising from the activity as a financial services provider, client advisor or client advisor as a result of a breach of professional diligence.
- Losses claimed within one year of the expiry of the insurance contract, provided that they were caused during the term of the contract (and provided there is no obligation to pay benefits under another insurance policy).
- In the case of insurance taken out abroad, confirmation must be provided that the insurance also covers damage for activities in Switzerland.
- Amount of coverage
- The sum covered (for all claims within one year) must be at least 500,000 Swiss francs
- If the policy is taken out by a financial services provider, the amount of cover (for all claims for one year) must be
- for two to four customer advisors: CHF 1.5 million
- with five to eight client advisors: CHF 3 million
- with more than eight client advisors: CHF 10 million
- Validity
The regular period of notice of the professional liability insurance must be at least three months. At the time of entry in the Client Advisor Register, the insurance must not have been terminated.
Equivalent financial security (Art. 29(1)(b) FinSA and Art. 33 FinSO)
- Deposit of equivalent financial security
An equivalent financial security in the amount of the sum insured must be deposited with a bank within the meaning of Art. 1a of the Banking Act. The registration office must give its prior consent to the deposit. Please contact us in advance if, instead of taking out professional liability insurance, equivalent financial security in accordance with Art. 33 para. 1 FinSO should be deposited.
- Foreign Financial Service Providers
Foreign financial service providers subject to prudential supervision must have a minimum capital of the equivalent of CHF 10 million as equivalent financial security. A copy of the last audited annual financial statements must be submitted as proof.