FinSA
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The FinSA in a Nutshell
The Financial Services Act (FinSA) is a Swiss legislation designed to strengthen investor protection and enhance transparency in the Swiss financial services sector. It was enacted by the Swiss Federal Assembly and came into force on January 1, 2020.
By implementing the FinSA, Switzerland seeks to align its financial services regulation with international standards, ensuring a more secure and transparent environment for investors and financial institutions.
The Financial Services Act (FinSA) has the following main objectives:
- Protect the interests of clients and enhance investor protection.
- Construct comparable conditions for providing financial services among financial institutions.
- Strengthen the reputation and competitiveness of the Swiss financial
centre.
Find summary details about Valenium (Switzerland).
Client Classification
The FinSA defines the following classes of clients, with each category assigned a different level of investor protection:
- Retail Clients
- Professional Clients
- Institutional Clients
Financial Services
The FinSA defines the following activities carried out for clients as financial services:
- Acquisition or disposal of financial instruments.
- Receipt and transmission of orders in relation to financial instruments – see Execution Only Service for more details.
- Administration of financial instruments – see Discretionary Mandate Service for more details.
- Provision of personal recommendations on transactions with the financial instruments – see Advisory Services and Ad-Hoc Services for more details.
- Granting of loans to finance transactions with financial instruments – see Lombard Loan Service for more details.
Provision of a Financial Service
The main requirements to be followed according to the FinSA are:
- Ensuring appropriate knowledge and training of relationship managers and other employees.
- Adequately informing clients on general elements related to the provided financial services.
- Providing suitable information about the risks and costs associated with financial services and instruments.
- Conducting appropriateness and suitability assessments.
- Ensuring proper documentation.
- Ensuring transparency and care in client orders, including best execution.
- Avoiding or mitigating where not possible conflicts of interest.
- Adhering to product documentation rules for offerings and issuance of financial instruments.
Financial Instruments
The following products are considered financial instruments in the sense of the FinSA:
- Equity securities (Shares and securities allowing participation and voting rights).
- Debt instruments and Bonds.
- Units in collective investment schemes (investment funds).
- Structured products.
- Derivatives.
- Deposits for which the redemption value or interest is risk- or
price-dependent.
Not included are FX/PM spot transactions, claims/receivables for physical delivery or cash settlement of FX/PM, custody accounts or deposits, including callable and fixed term deposits and fiduciary deposits.
Best Execution
Under the FinSA, financial institutions shall take all necessary steps to obtain the best possible result for clients on a consistent basis when executing transactions on their behalf.
Conflicts of Interest
The FinSA requires that any potential conflicts of interest are clearly disclosed or otherwise mitigated so they may not result in a financial disadvantage for the client.
Costs and Fees
Costs and fees may be incurred in connection with the provision of financial services. If an overview of personal costs and fees or if a printed/electronic copy of the schedule is preferred, the responsible relationship manager will be pleased to assist.
Product Information
The FinSA requests that financial institutions provide product information sheets (e.g. KID) for financial instruments if the manufacturer provides them.
Complaints Handling
The FinSA demands that financial institutions officially inform how clients have to act in case of complaints, or if clients are not satisfied with the reply given by the institution.
For further information about Complaints Handling
Disclaimer
The content of this website is for information purposes only. It does not constitute a financial service, nor an offer or advertisement under the Financial Services Act (FinSA). In particular, it does not constitute a recommendation to use a service, to purchase or sell investment instruments or to carry out any other transaction, nor should it be construed to constitute any investment advice. If you have received this information, it is on your specific request only and for your personal use only. The content of this website is not intended for citizens of the United States of America or the United Kingdom or for persons who are domiciled or resident in any of these countries or in any other countries where the access to the information contained in this website is or may be restricted by local legislation or other regulations. If you are from such a jurisdiction, you are not authorised to proceed and must exit this website immediately. The information in this website is not the result of a financial analysis or research and is not subject to the SBA’s Directive on the Independence of Financial Research. The content of this website is of general nature and exclusively based on publicly available information obtained from various sources that Valenium (Switzerland). considers reliable as of the date hereof. No representation of any kind is made that the information contained herein is accurate or complete. Forward-looking forecasts reflect our current assessment of a possible future economic development. However, the actual results might differ from these expectations due to a variety of factors. Past performance is no guarantee for current or future performance. Nothing contained herein shall constitute any representation or warranty as to future performance.
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