SFA welcomes FINMA distribution proposals

The Swiss Funds Association (SFA) has welcomed new proposals on distribution rules put forward by Swiss financial regulator FINMA.

The FINMA [asset_library_tag 4119,Position paper on distribution rules] – published today – proposes legislation in order to “reduce the asymmetrical power relationship between financial services providers and clients.”

This would improve conduct of business and improve the clarity of documentation received by clients, among other improvments, FINMA said.

The regulator also proposes tougher oversight of asset managers, while “client advisers” would have to prove their knowledge through exams and ongoing professional development.

The SFA said that it supported the objectives of the Position paper, in particular the objectives of providing a “level playing field” for all financial products, and the proposals to regulate and supervise asset managers.

“Product-neutral regulation of distribution at the point of sale has long been an issue raised by the SFA. We are pleased that the standards that have applied to funds for many years are now to be taken as an example, so to speak, for other financial products,” said SFA President Martin Thommen.

SFA CEO Matthäus Den Otter added: “We have also been calling for some time for asset managers to be brought under FINMA’s supervision, provided that this is implemented in a pragmatic and measured manner. As regards product regulation, however, we expect the still existing ‘Swiss finish’ in the regulation of collective investment schemes to be consistently waived in favor of a cross-product approach.”




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