Independent asset managers and trustees must submit their licence application to FINMA by the end of this year. The licence is essential for their future (independent) business activities and at the same time stands for a high standard of quality for the benefit of clients. Experience to date shows: Those who want to tackle the path to licensing efficiently rely on good time management.
Step 1: Planning as the key to success
Every approval process begins with proper planning. Get an overview of the entire process and the steps to be taken. It is advisable to take this first step as soon as possible. Since many institutions are only now starting the procedure, the processing times at the various supervisory organisations (SO) and at FINMA could be longer.
Step 2: Don't be afraid of critical questions
This phase includes the drafting of FinSA- and FinIA-compliant contracts, directives, regulations, etc. In this context, important decisions are made with regard to your entrepreneurial future, which sometimes require a certain amount of self-criticism on your part. External consultants can suggest possible solutions, but the decision to implement them is up to you.
Step 3: The "hot phase
The correct and high-quality preparation of your application, including all other required documents, is a key element in this process. This is no less important than demonstrating to the supervisory authority (SO) and FINMA that your institution meets all legal requirements. Legal and regulatory expertise and experience in dealing with the supervisory authorities are of great advantage here.
Step 4: Communication with the supervisory authorities
The application is first submitted to SO . The latter examines the application and the documents and, if necessary, requests improvements and additions. The latter examines the application and the documents and, if necessary, requests improvements and additions. Once SO has given the green light, the application is sent to FINMA. Allow enough time for queries and the associated further implementation: Experience shows that it takes around 2-3 months from the first kick-off meeting (step 1) to the submission of the application to SO . After that, according to current knowledge, negotiations with both SO and FINMA can be expected to take about 2 months each. Since many people are involved on all sides, it is worthwhile to allow for longer decision-making and reaction times.
Dr Fabian Schmid is a partner and Head Regulatory & Compliance at BDO Financial Services in Zurich. As an expert in regulatory and financial market law, he specialises in the field of asset management.
BDO offers asset managers and trustees comprehensive support as part of the licensing application process. IGUV-Members benefit from a discount on the range of services. Learn more here.