Swiss asset managers’ applications being reconsidered in the USA

me processing applications from FINMA supervised Swiss entities who wish to operate as Registered Investment Advisers (RIAs) in the United States, the two regulatory bodies have announced. In a recent development, entities in Switzerland providing investment advisory services have been required to register with the SEC in order to conduct business on a cross-border basis in the US. After a hiatus of several years, the SEC has decided to resume processing both new and pending applications from Swiss asset managers. This decision comes following constructive dialogues between FINMA and the SEC, where both entities have worked through the various modalities involved in the examination of SEC-registered investment advisers based in Switzerland who are concurrently supervised by FINMA. These modalities have been aligned with the legal framework in Switzerland, including the direct transmission of information under Art. 42c FINMASA, as well as on-site examinations under Art. 43 FINMASA, along with compliance with US securities laws. For those entities holding a FINMA license seeking further details on supervisory cooperation, they are encouraged to reach out directly to [email protected].

International cooperation is crucial for financial institutions to engage in cross-border activities successfully. FINMA is prepared to extend administrative support within its mandate and in adherence to Swiss regulatory laws to facilitate effective collaborations with foreign supervisory bodies. By creating channels for information exchange and operational coordination, FINMA aims to foster a spirit of cooperation among regulators to better serve the interests of financial entities engaging in international business transactions. This initiative highlights the commitment of regulatory authorities to facilitate and promote cross-border financial activities while ensuring compliance with regulatory requirements and oversight.

The resumption of processing applications by the SEC provides a positive outlook for Swiss asset managers looking to expand their business activities in the US market. The collaborative efforts between FINMA and the SEC underscore the importance of regulatory alignment and cooperation to enhance the efficiency of supervisory oversight in the financial sector. This development signifies a step towards streamlining processes and reducing barriers for Swiss entities seeking to operate as RIAs in the United States. With renewed momentum in processing applications, Swiss asset managers can now look forward to greater opportunities for growth and expansion in the US market.

Overall, the decision by the SEC to resume the processing of applications from Swiss asset managers supervised by FINMA is a significant milestone in fostering international cooperation in the financial services sector. This move aligns with efforts to facilitate cross-border business activities, promoting regulatory compliance and oversight while enabling financial institutions to expand their presence in global markets. By reinstating the processing of applications, the SEC and FINMA have demonstrated a commitment to regulatory collaboration and operational efficiency, fostering a conducive environment for Swiss entities to engage in investment advisory services in the United States.