A foreign securities dealer needs to be authorised by FINMA if it employs staff in Switzerland who, on a professional basis, permanently trade securities or manage client accounts on its behalf in or from Switzerland that give rise to legal obligations.
Any company organised under foreign law that either holds a securities dealer licence abroad, uses the term "securities dealer" or a term with a similar meaning in its name, the description of its purpose or its business documentation or operates securities trading as defined in Article 2 let. d of the Stock Exchange Act is considered as a foreign securities dealer.
For a foreign securities dealer to obtain a licence to open a branch, there must be no doubt that the applicant meets or can meet all of the licensing requirements. The most important are:
The foreign securities dealer’s qualified participants and the branch’s executive management must assure proper business conduct.
The foreign securities dealer must 1) be subject to appropriate supervision that includes the branch, 2) be adequately organised, 3) have sufficient finances and qualified staff to operate a branch in Switzerland, and 4) prove that the branch can be entered into the Commercial Register.
The responsible foreign supervisory authorities must 1) raise no objections to the opening of a branch, 2) undertake to inform FINMA without delay if circumstances arise that could be severely detrimental to the assets of the branch’s clients, and 3) be in a position to cooperate with FINMA.
The country of domicile of the foreign securities dealer and all qualified participants must guarantee reciprocal rights.
The branch must have regulations precisely describing its business and an organisation that is compatible with its operations.
FINMA can demand financial security from the branch (endowment capital, guarantees, assets in Switzerland, etc.).
Appointment of a recognised audit firm for the licensing process.
Appointment of a recognised regulatory audit firm for ongoing supervision.
If the foreign securities dealer forms part of a group active in the financial sector, FINMA can make the licence contingent on the group subject to appropriate consolidated supervision by foreign supervisory authorities.
The licensing process for a branch of a foreign securities dealer normally takes about six months, but the duration depends on the quality and complexity of the application. The time it takes to receive a response from the responsible foreign supervisory authorities must also be taken into account.
Branches of foreign securities dealers are subject to prudential supervision by FINMA.
The Authorisation section of the Banks division (firstname.lastname@example.org)