The entry into force of the Financial Services Act (FinSA), of the Law on Financial Intermediaries (FinIA) and associated Ordinances (FinSA and FinSO), are pushing the community of the Independent Asset Managers to rethink their structure, the services offered to the clients and their business model, adopting changes that may result not only in obligations to adapt themselves to the new regulation but, above all, in new business opportunities.
Thanks to the experience and deep knowledge on MIFID 2 and FinIA / FinSA financial legislation, deepened in several projects with banks and financial institutions, we have been mandated by our client, a leading Swiss Asset Management company, to accompany and support him along the path of the adoption of new Laws and Ordinances.
The objective of the mandate is to provide all information required to proceed with the authorization request to FINMA, selecting the best choices between several options, whether they are related to:
• services that can be delegated to third parties or data processing that can be "outsourced" to third parties,
• specific requirements for the implementation of the articles of the Ordinances,
• new IT tools to be acquired to complement or replace those already in use,
• interventions on the organization, with special attention to the business and operating model,
• design of the new processes to be implemented, especially in the area of client classification, appropriateness and suitability,
• procedures and policies to be adapted or created to support all activities required by the legal framework.
As a first step, we have assessed the "As Is" situation with respect to the obligations imposed by the new regulations and the preparation of the documents to be set up for the authorization requests.
Once acquired all the information needed to design the contractual framework, we have finalized the proposals for the actions required to close the identified gaps, the implementation plan and the activities needed to support the implementation. All activities have been carried out respecting the deadline assigned.
The final deliverables include:
• a complete set of processes, procedures, internal controls and risk indicators, as required by the regulations in force.
• a detailed description of the interventions to be carried out to close the gaps highlighted, showing the needed adaptations to his organizational structure and operating platform; the proposed interventions have also included improvements in the IT solutions;
• a design of the delegated or outsourced services, with specific attention on the changes required to the service contracts,
• an implementation plan of the measures required to close the gaps highlighted, verified by BWS with all suppliers involved,
All deliverables are now ready for the forthcoming application to FINMA, which is foreseen for Q3 2021.