Supervision of supervisory organisations

FINMA licences and supervises supervisory organisations (SO). The SO are responsible for the ongoing supervision of independent portfolio managers and trustees.
They must comply with continually changing licensing requirements in terms of independence and guarantee, organisation and corporate management plus personal qualifications and resources. The SO must also meet minimum financial requirements. FINMA reviews and approves changes to circumstances integral to the licensing process.

Risk-oriented supervision

FINMA conducts risk-oriented supervision of the SO. It checks whether the SO supervise compliance with legal requirements by portfolio managers and trustees. FINMA conducts a risk analysis of the SO once annually with particular emphasis on the business, risk and supervisory policy. The SO organisation, structure of the audit system and the personnel and financial aspects of the SO are also included. The risk analysis by the SO determines the choice and intensity of the supervisory tools used by FINMA in each case.

Supervisory instruments

FINMA conducts on-site supervisory reviews as well as regular bilateral supervisory interviews and analyses the SO annual reports. The SO also receive an annual assessment report covering any weak points and areas requiring further action.