Financial Institutions Act (FinIA)

The Financial Institutions Act (FinIA) intends to harmonize the different approval requirements for financial institutions which includes securities firms (previously securities traders), fund management companies and managers of collective assets, but also independent portfolio managers and trustees, into one single law. The goal is to leave the existing rules for financial institutions who require approval as they are, but to combine all of them in a uniform law in order to harmonize the different requirements. A new feature is the prudential supervision of the independent portfolio managers by a so called supervisory organisation. Banks remain out of scope of FinIA.

201820192020202120222023
4 5 6 7
  • 1 Preparation of the rule of law 03/12-05/14
  • 2 Consultation period 06/14-10/14
  • 3 Result of consultation 12/15-11/15
  • 4 Treatment in the Parliament 12/16-06/18
  • 5 Publication of final decree 06/18-06/18
  • 6 Referendum period 06/18-10/18
  • 7 Enactment / transitional period 01/20-01/23
Status
FinIA has been passed by the parliament on 15 June 2018. A draft of the corresponding ordinance (FinIO) has been published on 24 October 2018 and is currently in the consultation phase. FinIA and FinIO are expected to enter into force on 1 January 2020.

KPMG View

In material terms, the introduction of the FinIA will not lead to major changes for most financial institutions. One exception are independent portfolio managers, who will in the future be subject to prudential supervision. We advise these independent portfolio managers to do an impact analysis and plan the implementation at an early date.

Further information:


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