FinSA – FinIA: a new MiFID II?
- Map the changes
- Analyse their current systems and controls to identify any gaps and carry-out a full impact study
- Design the new Policies and Procedures, including governance arrangements
- Transform or adjust their operating models
- Train their employees to ensure that the new processes are embedded in the Firm culture and operations
MiFID II came into force in January 2018, 2 years ago and many firms are still struggling to ensure full compliance: FinIA and FinSA are expected to modify the regulatory landscape in a similar fashion and therefore it is paramount to start preparing momentarily.
FinSA insightsSignificant shortcomings existed under previous financial services law in the area of code of conduct and product regulations. The new framework aims at establishing a level playing field between financial intermediaries and strengthens client/investor protection to enter fully into the 21st century and underpin EU equivalence decision (e.g. third country access) whilst preserving Swiss particularisms. FinSA provisions amend substantially investor protection regulatory framework by introducing among others:
- A new client classification
- Client profiling requirements (e.g. suitability, appropriateness)
- Duty to provide information
- Documentation and reporting obligations