Switzerland - Regulation of Trustees

Swiss Trustee Regulation

On the 1 January 2020 the Swiss Financial Services Act and the Financial Institutions Act, known respectively as FinSA and FinIA, will come into force. The two Acts and the supporting Ordinances, introduce a new regulatory regime applicable to trustees who practise in Switzerland. The aim of the legislation is to raise standards and governance while at the same time create a competitive market for financial intermediaries and improve client protection.

The legislation introduces minimum standards and requirements that must be adhered to by trustees in matters of governance, education and professional skills and standards. In addition, control systems and risk management processes are required to be put in place, as well as provisions for the management of conflicts of interests should such a conflict arise.

It was initially expected that the legislation would introduce a requirement of licensing that would include private trust companies and certain single family trust structures, but the Acts as finalised specifically exempt such entities from the licensing obligation. However, all trustees both Swiss and foreign, who have a presence in the jurisdiction are required to apply for authorisation by the regulatory authority during a transition period.

Other obligations setting out the requirement to be met by senior management regarding their education and professional experience, reflects the current professional standards in the industry.

The legislation recognises that trustees generally do not act on the instructions received from their clients nor provide financial services.
The changes will be introduced in the course of a transition period of two years. The transition period will allow trustees sufficient time to become compliant and the new regulatory body, the Financial Market Supervisory Authority (FINMA), to be established and commence its enforcement role.

This legislation will increase the obligations on Swiss based trustees, and help in the continuing professionalization of the industry in Switzerland.


For advice and assistance concerning Trusts and Trustees in various jurisdictions please contact Peter brigham p.brigham@rosemont-mc.com