The Swiss Federal Government is currently reviewing the project law on Financial Services. Also called the Financial Services Act, it has in mind to better protect client in investment advisory and asset management.
The project law provides for :
- The verification of the adequation of the investments operated by the asset manager
- The obligation to inform the client with an explicative note
- The obligation for the wealth management company to provide a detailed informative note describing the financial services for which the retribution varies according to the nature of the assets under management
The Swiss government plans to approve the Financial Services Act by 2015 at the earliest.
What consequences to expect on the wealth management industry ?
In the first place, this new law on financial services represent an additional pressure on compliance duties. Asset managers will have obligation to prove that their investment strategies are legitimate and consistent with the client profile. From an organisational point of view, the future law will no doubt impact the global workload with additional reporting and compliance controls.
Furthermore, from a risk-management point of view, the production of informative notes engaging responsibility requires to prove that all information have been read and approved – with a visa. This increases the quantity of mandatory documents requiring a constant verification of their validity.
The capacity to manage legal constraints and their impact of their operations is more than ever a key success factor for IAMs. It involves the deployment of a centralised and automated management solution to support the vital functions of the company : portfolio management, clients relationships, compliance and administration.
To know more about the technological management solution, please contact the team of KeeSystem® by email or by photo +41 (0)22 548 12 03.
Photo credit www.economiesuisse.ch