Supervision in the area of FinTech

FINMA supervises institutions with a FinTech licence (persons under Article 1b BA) in a risk-oriented and principle-based way. External audit firms play an important role in this.

Licensed institutions with a FinTech licence are subject to supervision by FINMA. Ongoing compliance with the licensing requirements is key here. In addition, FINMA takes appropriate account of the fact that the deposits held by institutions with a FinTech licence are not covered by deposit insurance pursuant to the Banking Act. The legal basis for supervision can be found in the Banking Act (BA), the Banking Ordinance (BO) as well as further details in the corresponding FINMA circulars.

Ongoing supervision

FINMA’s supervisory system distinguishes between direct supervision, where FINMA carries out the supervisory work itself, and indirect supervision, where FINMA appoints a regulatory audit firm to extend its reach. For this, FINMA relies on the work of audit firms which have been approved by the Federal Audit Oversight Authority. The audit firms are regularly requested by the supervised institutions to carry out regulatory audits. FINMA has a variety of supervisory instruments at its disposal, some of which it applies itself on site. In addition, FINMA can collect data provided that a needs-based approach is ensured.

You can find information about the specific requirements for auditing in the area of FinTech here.

Disclosure requirements

Any change in circumstances that affects the licence must be reported to FINMA. If the changes are of material significance, prior authorisation must be obtained from FINMA in order to pursue the activity.

 

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