FINMA issues circular on rules of conduct under the FinSA
FINMA is setting out its supervisory practice on key aspects of
interpretation in the new circular on the Financial Services Act
FinSA. This will create transparency and legal certainty as well as a
comparable level of investor protection among the supervised
institutions. The circular will enter into force on 1 January 2025.
The circular on the rules of conduct under the FinSA provides
information on the supervisory practice as regards informing clients
so that they can make informed investment decisions. For example,
clients should be informed about the type of financial service, the
associated risks and the compensation received from third parties. The
handling of conflicts of interest when using the bank’s own financial
instruments is also discussed.
The circular was discussed
intensively during the consultation. Consumer protection
organisations, some law firms, supervisory organisations, universities
and other interested parties expressly welcomed the circular to
clarify practical issues and to specify the rules of conduct under the
FinSA. Banks, industry associations and other industry-related
organisations and companies were generally opposed to a circular.
FINMA went ahead with the circular nevertheless. It has responded to
various points from the consultation and implemented them in the
circular.
The circular will enter into force on 1 January
2025.