Asset Manager
A person who professionally manages client assets on his own behalf and in his own interests is called an asset manager by FinIA. According to the FinIA draft executive order, if any of the following criteria are met, the activity is considered to be carried out on a professional basis:
| 1 | agreements with more than 20 parties |
| 2 | gross annual turnover of more than CHF 50,000 |
| 3 | the ability to manage third-party assets worth more than CHF 5 million |
| 4 | or transactions totaling more than CHF 2 million |
Additional exceptions are permitted in accordance with FinIA and FinIO. One of them states that asset managers are not under the purview of the FinIA and do not need to apply for a license to operate if they only manage the assets of clients with whom they have “economic” or “family” ties. The FinSA requirements apply to purely investment advisory transactions, which are still not regulated.
The main licensing criteria for asset managers in accordance with the law, in addition to the standards of “fit and proper quality”:
- The registered office and administration of the asset manager must be in Switzerland;
- management must consist of at least two qualified individuals and have appropriate internal organization, especially with regard to risk management and internal control mechanisms;
- Having a fully paid minimum share capital of CHF 100,000;
- Have a minimum amount of equity capital equal to one quarter of the asset manager’s fixed annual costs based on the latest financial statistics;
- Signing a professional liability insurance policy or providing adequate financial guarantees.
