Compliance Outsourcing Services in Switzerland

In 2020, the FINIG, FIDLEG, and related regulations such as FINIV, AOV, and FIDLEV were introduced. These changes significantly increased the requirements for licensing, supervision, organization, and internal control of financial institutions.

Independent asset managers and trustees are now classified as financial institutions and require a license. They are also subject to financial market supervision, necessitating appropriate corporate governance rules and a structure that ensures compliance with legal obligations.

Asset managers and trustees must have robust risk management and effective internal controls to ensure adherence to regulations.

The Anti-Money Laundering Act (AMLA) requires financial intermediaries to ensure sufficient training for their staff and conduct controls.

Authorities often require a functional separation between supervised business activities and compliance and risk management. Separating and outsourcing the compliance function can meet this requirement efficiently.

Small and medium-sized asset managers often lack the necessary expertise and personnel resources. Staff turnover of employed compliance officers results in a significant loss of know-how. For these firms, outsourcing AMLA compliance tasks to an external expert is the most efficient solution (Compliance Outsourcing Services).

Outsourcing to an external compliance officer can provide the necessary expertise and resources while also being cost-effective. Compliance outsourcing services offer a high level of professionalism and efficiency, making it a practical solution for small and medium-sized asset managers.er eliminates unnecessary training costs for internal staff. External compliance officers provide tailored support that is both cost-effective and highly professional.

By outsourcing, asset managers purchase a service, relieving them from the need to manage their own internal teams. No need to take care of recruitment, interviews, illness, etc. of compliance officers anymore.

External compliance officers offer comprehensive advice on AMLA obligations and assist in optimizing internal processes. They can also handle tasks such as drafting directives and contracts. Last but not least they can provide basic data protection coverage.

An external compliance officer ensures adherence to all legal and internal regulations. Allowing financial service providers to focus their resources on their core business. This allows them to serve clients without burdening themselves with administrative tasks.

Asset managers must comply with stringent legal requirements, making effective risk management indispensable. This involves identifying, assessing, and controlling risks arising from market movements, processes, and legal changes. The complexity and scope of these tasks make risk management a critical component of any company’s strategy.

In risk management outsourcing, the asset manager works closely with a professional who develops tailored solutions. The process typically includes:

The financial industry faces growing challenges because of complex legal requirements and stricter controls. A crucial aspect is the clear identification and verification of UBOs.

Identifying the UBO is a legal obligation. Failure to clarify UBO status can lead to significant legal and financial consequences. Therefore, clear and effective processes for determining UBOs are essential.

Compliance and risk management outsourcing offer significant advantages for asset managers. Outsourcing partners meet legal requirements while optimizing processes.

By outsourcing, asset managers purchase a solution and avoid the need to manage internal compliance personnel.

External experts specialize in legal compliance, allowing asset managers to focus on their core business. This results in better customer care and more efficient business operations.

Overall, outsourcing provides a professional and efficient solution, enabling asset managers to concentrate on their core business and clients.