FINSO – Federal Department of Finance provides Clarity about Ordinance
The Federal Department of Finance (FDF) today published important information with respect to expected amendments in the ordinances. It explains the adjustments made in the consultation process and the corresponding resolutions. The following information is available on the FDF website:
Below we provide brief information on the most significant changes with regard to the obligation to register in the register of advisors. The corresponding Articles of the ordinance refer to the draft version of 24 October 2018:
Extension of transitional periods
One of the biggest changes concerns the transition periods, with the entry into force of the law unchanged as of 1 January 2020. The transitional periods for Articles 103-106 and 110 FIDLEV have been extended from one year to two years. This means that client advisors will not have to demonstrate the necessary knowledge in accordance with Art. 6 FIDLEG until the end of 2021 due to the adjusted transitional period in Art. 104 FIDLEV. In order for a qualified registration to be possible by mid-2020, the registration offices will probably have to provide that client advisors must at least provide credible proof during the registration process of how they will be able to prove the required knowledge within the statutory period. The required proof will have to be provided by the end of 2021 at the latest.
Register of advisors
With regard to the obligation to be entered in the register of advisors, foreign financial service providers will be able to benefit from more far-reaching exceptions. Art. 31 FIDLEV now provides that client advisors of foreign financial services providers subject to prudential supervision are exempt from the registration requirement if they provide their services in Switzerland exclusively to professional and institutional clients. The term “prudential” will probably not be further specified. However, the exception is far more comprehensive than the previous regulation in the consultation draft of FINSO.
The Federal Council will adopt FINSO and FINIO at its meeting on 6 November 2019. The final text of the ordinance will therefore not be published until November this year.
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