Since the entry into force of the Financial Institutions Act (FinIA) and the Financial Services Act (FinSA) on 1 January 2020, Switzerland's regulatory framework for financial service providers has undergone a profound transformation. For family offices, the key question is: at what point does a coordination or advisory activity become an activity subject to FINMA?
The landscape before 2020
Before FinIA came into force, Switzerland had a notable feature: independent asset managers (IAMs) operated without a specific prudential licence, subject only to anti-money-laundering rules. This permissive regime contrasted with most European legislation.
FinIA ended this situation by introducing a prudential supervision regime for several categories of providers, including portfolio managers within the meaning of the Act.
Who is subject to FinIA?
FinIA subjects to authorisation and supervision those entities that, on a professional basis:
- Manage assets under management mandates (investment decisions for third parties)
- Act as trustees, administering separate assets for the benefit of beneficiaries on the basis of a trust deed
The determining criterion is decision-making authority: a manager who makes buy and sell decisions on behalf of their clients is managing assets within the meaning of FinIA. They must obtain a FINMA authorisation and affiliate with a supervisory organisation (SO) — for example OSFINcontrol (formerly OSFIN) or another FINMA-authorised SO.
The key distinction: coordination vs asset management
A coordinating family office — which observes, reports, coordinates service providers and produces analyses, without making investment decisions on behalf of its clients — is not an asset manager within the meaning of FinIA. It does not conduct an activity subject to FINMA.
This distinction is fundamental and must be clearly reflected in:
- The mandate agreement (which defines the scope of activity)
- Communication with banks (the family office does not issue market orders in its own name)
- Any powers of attorney (limited to consultation, not to disposal)
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What FinSA says
FinSA applies to anyone providing financial services — investment advice, asset management, order execution — to clients in Switzerland. It imposes information obligations, client classification and mandate documentation requirements.
A coordinating family office that limits itself to coordination and reporting does not provide financial services within the meaning of FinSA. However, if it formulates specific and personalised investment recommendations — "buy this security" — it may be considered an investment adviser and fall within FinSA's scope.
The boundary between general information and personalised advice is a matter of factual and contextual analysis. Caution is warranted.
The role of supervisory organisations
Supervisory organisations (SOs) are authorised and supervised by FINMA; they carry out the ongoing supervision of portfolio managers and trustees subject to FinIA. FINMA publishes the list, which includes OSFINcontrol (formerly OSFIN). Supervised managers must affiliate with such an organisation, which conducts regular compliance checks.
A family office that is not an asset manager within the meaning of FinIA is not required to affiliate with an SO. This does not mean the absence of all constraints: anti-money-laundering rules (AMLA), data protection (FDPA) and contractual due diligence obligations remain applicable.
Coordinating MFOs: a clear framework
Multi-family offices positioned as pure coordinators — such as Ridger — operate in a regulatory framework distinct from that of asset managers. Their activity is oriented towards:
- Wealth reporting and consolidation
- Coordination of service providers (banks, managers, tax advisers, lawyers)
- Family governance support
- Analysis and supervision of mandates entrusted to third-party managers
This clear positioning limits conflicts of interest for clients: the family office does not take investment decisions on their behalf.
For any question on the regulatory framework applicable to your situation, consulting a specialist lawyer is recommended. Ridger can direct you to appropriate professionals.