Financial Services Regulation 2025 Comparisons

The core aspects of Swiss financial market law are set out in the following laws and ordinances.

• The Financial Market Supervisory Act (FINMASA) defines the overall supervisory architecture and the powers of the Swiss Financial Market Supervisory Authority (FINMA), which supervises banks, securities firms, asset managers, collective investment schemes, insurers and financial market infrastructures. Sectoral statutes include the Banking Act (BA), Financial Institutions Act (FinIA), Financial Services Act (FinSA), Financial Market Infrastructure Act (FMIA), Insurance Supervision Act (ISA) and Collective Investment Schemes Act (CISA).
• Prudential rules for banks and securities firms are primarily governed by the BA, the implementing Banking Ordinance (BO), the Capital Adequacy Ordinance (CAO) and the Liquidity Ordinance (LiqO), with the Swiss National Bank Act (NBA) underpinning systemic stability generally and oversight of financial market infrastructures. Conduct, disclosure and client protection rules applicable to financial service providers arise under FinSA, related implementing ordinances and certain self-regulatory standards recognised by FINMA.
• AML and the prevention of terrorist financing are governed by the Anti-Money Laundering Act (AMLA), as well as the implementing Anti-Money Laundering Ordinance (AMLO) and the FINMA Anti-Money Laundering Ordinance (AMLO-FINMA), applying across banks, securities firms, crypto-asset service providers and other financial intermediaries that are not subject to prudential supervision.
• The provision and solicitation of consumer credits are subject to the Consumer Credit Act (CCA), which, inter alia, imposes an obligation to conduct credit checks and perform transparency duties.

The Swiss regulatory framework combines laws, ordinances and FINMA circulars outlining FINMA’s regulatory practice, and minimum standards set by industry bodies such as the Swiss Bankers Association (SBA) and the Swiss Asset Management Association (AMAS). This supervisory framework and FINMA’s risk-based approach to supervision allow for targeted calibration of regulatory requirements for small banks, systemically important banks (SIBs) and innovative models, such as fintech licensees.

Generally, the following activities are considered regulated activities under the Swiss supervisory regime, requiring a licence from FINMA.

• Regulated deposit taking: Pursuant to Article 1a BA, any person that is active in the financial sector and, on a commercial basis, (i) accepts public deposits in the form of cash or crypto-assets (subject to certain de minimis thresholds) and/or (ii) publicly advertises such services is considered a bank that requires a banking licence under the BA. The term “deposit taking” is interpreted broadly by FINMA and ultimately covers any acceptance of cash or crypto-assets, with the simultaneous establishment of a repayment obligation. However, the broad term of “public deposits” is narrowed down by several exemptions set out under Article 5 et seqq BO.
• Securities firm activities: Article 41 FinIA defines regulated securities firm activities as (i) the trading of securities on behalf of clients; (ii) proprietary trading of securities, to the extent such trading activities may endanger the proper functioning of the financial market and the entity in question is a participant of a regulated trading venue; (iii) an entity operating an organised trading facility within the meaning of the FMIA; or (iii) the provision of market making services by trading in securities on a short-term and proprietary basis, and permanently and publicly quoting prices for specific securities. In addition, pursuant to Article 12 FinIA, underwriting activities – ie, the acquisition and public offering of securities issued by a third party on the primary market and the issuance and public offering of derivatives qualifying as securities on the primary market, require a securities firm licence, pursuant to Article 41 FinIA.
• Regulated fund management activities: Article 32 FinIA defines regulated fund management services as management and administrative services on behalf of investors in collective investment schemes within the meaning of CISA. Whilst fund management companies may, pursuant to Article 6(3) FinIA, provide portfolio management services to the underlying funds, fund management companies additionally provide administrative services in relation to collective investment schemes, such as decision-making regarding the issuance of units in a given fund, calculation of the net asset value, determination of redemption prices and exercising all rights associated with the fund and its underlying assets.
• Portfolio management for collective assets: Pursuant to Article 24 FinIA, portfolio managers for collective assets are entities that manage assets and provide portfolio management services on a commercial basis on behalf of collective investment schemes, within the meaning of the CISA and/or occupational pension schemes. Consequently, providing portfolio management services to collective investment schemes and occupational pension funds generally requires a licence as a portfolio manager for collective assets – with certain exemptions applying, for example, if (i) the portfolio management services are exclusively provided to collective investment schemes that are only open to qualified investors within the meaning of CISA, and (ii) the statutory de-minimis threshold is adhered to.
• Regulated portfolio management and trustee activities: Article 17(1) FinIA defines “portfolio manager” as any person who, based on a mandate including a power of attorney, can dispose over client assets on a discretionary basis. Whilst portfolio managers manage client assets based on a power of attorney in the client’s name and on the client’s behalf, Article 17(2) FinIA defines regulated trustee services as the management or holding of segregated funds on a fiduciary basis on behalf of the beneficiaries of a trust, pursuant to the Hague Convention on the Law Applicable to Trusts and on their Recognition.
• Regulated provision of consumer credits: Pursuant to Article 37 et seqq of the CCA, any person and/or entity that, on a professional basis, (i) provides consumer credits and/or (ii) solicits consumer credits in Switzerland must obtain a licence under the CCA. Subject to certain exemptions, all credit instruments issued to natural persons that are not utilised for professional purposes qualify as consumer credits within the meaning of the CCA.

Further, financial intermediaries that are not subject to prudential supervision by FINMA under one of the licensing categories outlined in the foregoing are required to register with a self-regulatory organisation for AML purposes. The AMLA defines regulated financial intermediaries as persons who, on a professional basis, accept or hold assets belonging to third parties or who assist in the investment or transfer of such assets. Financial intermediation, inter alia, includes the provision of loans, the execution of payments on behalf of a third party or the issuance of means of payment, such as stablecoins. Whilst affiliation with a self-regulatory organisation does not constitute a prudential supervision, self-regulatory organisations under the applicable legislations are permitted to conduct audits assessing the AML compliance of affiliated members.

In certain cases, groups with a Swiss nexus can be brought under consolidated supervision by FINMA to address intra-group risk, even where only one Swiss entity (eg, a bank) exists that engages in a regulated activity.

In contrast to the activities outlined in the foregoing, the following activities, typically considered to be activities related to the financial sector, are not subject to a prudential licensing requirement in Switzerland:

• commercial lending per se does not require a banking licence, although CCA obligations apply for consumer credits (see the foregoing), and AMLA applies where financial intermediation (eg, lending on a professional basis) occurs; and
• pure technology provision, data processing and most payment services that do not entail deposit taking are not separately licensed as “payment institutions”, but may be captured by Swiss outsourcing, operational risk and AML rules.

In addition to the prudential licensing requirements outlined in the foregoing, FinSa sets out ongoing regulatory requirements applicable to the provision of financial services. FinSA defines financial services as:

• the acceptance and transmission of client orders;
• portfolio management services;
• investment advice; and
• the granting of loans for the acquisition of financial instruments.

FinSA provides for a number of regulatory requirements, including but not limited to:

• client segmentation rules (Articles 4 and 5 FinSA) – ie, defining the type and nature of the client (retail/professional/institutional);
• conduct rules at the point of sale, such as information and documentation requirements (Articles 8 and 9 FinSA), the requirement to conduct an appropriateness and suitability assessment (Article 10 et seqq. FinSA) and documentation and accountability obligations (Articles 15 and 16 FinSA); and
• organisational requirements, including but not limited to the requirement to put in place adequate measures to avoid and address conflicts of interest (Articles 24 and 25 FinSA) and requirements in relation to the payment of kick-backs (Article 26 FinSA).

In addition, client advisors of financial service providers that are not subject to prudential supervision may have to register with the client adviser register.

The Swiss regulatory framework provides for various exemptions, which considerably reduces the regulatory burden if applicable. The most commonly utilised exemptions are as follows.

• Cross-border exemption: A bank or financial institution licensed outside of Switzerland requires a licence from FINMA if it establishes a physical presence in Switzerland within the meaning of the Swiss regulatory framework.
• Branch office licence: On the one hand, this would be the case if the foreign bank/financial institution were to employ persons in Switzerland that permanently enter into transactions, manage client accounts or legally bind the foreign bank in a professional capacity. Such activities would require a licence as a branch of a foreign bank or a foreign financial institution.
• Representative licence: On the other hand, a licensing requirement applies if a foreign bank/financial institution employs persons in Switzerland who permanently act on behalf of the foreign entity without entering into transactions, managing client accounts or legally binding the entity, namely by forwarding client orders or maintaining a representation for marketing, advertising or other activities. A representative carrying on any of the relevant activities would require a licence as a representative office of a foreign bank/financial institution. Therefore, a licensing requirement may apply if mere marketing activities are performed by the Swiss representative on behalf of the foreign bank/financial institution. Consequently, a licensing requirement may apply under the Swiss regulatory framework, even if the representative does not engage in regulated banking services in Switzerland.

In contrast, foreign banks/financial institutions that engage in Swiss-related activities on a strict cross-border basis are not subject to the licensing framework outlined in the foregoing. As a consequence, under the cross-border exemption, non-Swiss banks and financial institutions can provide their services to Swiss-based clients without being required to obtain a licence from FINMA. It must, however, be taken into account that FinSA and the requirements set out thereunder may also apply in the context of the provision of financial services to Swiss-based clients on a cross-border basis.

Exemptions Under the BA

The BA and its implementing ordinances provide for certain exemptions. For instance, moneys held for customers are not considered indicative of “deposit taking” if they relate to settlement accounts or comply with certain restrictions for payment accounts.

FinTech Licence

The BA provides for two licensing categories: the regular banking licence (see the foregoing) and (ii) the fintech licence (also referred to as a “banking licence light“). With the fintech licence, companies not engaging in classic banking business (interest rate differential business) – eg, by using short-term deposits for long-term lending or investment activities – have a viable regulatory alternative. The fintech licence is attractive for companies that are mainly active in the financial sector, but which (i) limit their operations to accepting either deposits of less than CHF100 million or crypto-assets and (ii) do not invest the accepted funds nor pay interest thereon. Hence, the licence may also, for example, be attractive for companies offering payment services or platform funding services (see the following for an overview of recent legislative developments).

Innovation “Sandbox”

Pursuant to the BO, accepting public deposits or crypto-assets of up to CHF1 million without a banking licence is permitted if:

• the funds are not invested and no interest is paid; and
• the relevant person/entity proves to the depositors, before they make the deposit, in writing or in another form, that (i) it is not supervised by FINMA, and (ii) the deposit is not covered by the Swiss deposit protection regime.

AML compliance and affiliation with a self-regulatory body for AML purposes is, however, required. This enables proof-of-concept models while maintaining AML compliance. The innovation sandbox was primarily introduced for start-up companies that want to actively test their business model within a regulatory safe harbour without triggering a licensing requirement.

Exemptions Under FinSA

FinSA and its implementing ordinances provide for certain regulatory exemptions. For instance, FinSA and the requirements set out thereunder do not apply to the provision of financial services within the same corporate group. Further, to the extent that the relevant financial services are only provided to professional and/or institutional clients within the meaning of FinSA, certain “regulatory facilitations” will apply.

Switzerland does not yet have a comprehensive statutory framework regulating crypto-assets; rather, it applies a “same activity, same risks” approach to business models relating to crypto-assets.

Under its regulatory practice, FINMA classifies token based on their function.

• Asset tokens represent assets such as a debt or an equity claim against the issuer. Asset tokens promise, for example, a share in future company earnings or future capital flows. In terms of their economic function, therefore, such tokens are analogous to equities, bonds or derivatives. Tokens enabling physical assets to be traded on a blockchain infrastructure, according to FINMA, also fall into this category. Asset tokens are typically qualified as securities by FINMA and as such are subject to various regulatory requirements, including but not limited to a prospectus requirement and market conduct rules.
• Payment tokens (which are, according to FINMA, synonymous with “pure crypto-currencies”; referred to herein as “cryptocurrencies”) are tokens that are intended to be used, now or in the future, as a means of payment for goods or services or as a means of money or value transfer. Pure “cryptocurrencies” do not give rise to any claims towards an issuer or a third party. Consequently, according to the prevailing view, such tokens are “purely factual intangible assets”. Examples of cryptocurrencies are Bitcoin (including numerous cryptocurrencies resulting from forks or variations of Bitcoin, such as Bitcoin Cash, Bitcoin Gold and Litecoin) and Ether. Whilst payment tokens are not qualified by FINMA as securities, the provision of services in connection with payment tokens, such as custody and/or the assistance with trading payment tokens, is subject to AML requirements (including the Travel Rule). FINMA guidance relating to business models involving payment tokens emphasises governance, segregation, key management, operational resilience and clear client disclosures, including on loss allocation and fork/airdrop handling.
• Utility tokens are tokens that are intended to provide digital access to an application or service by means of a distributed ledger technology (DLT)-based infrastructure.
• A stablecoin is a token whose value is derived from an underlying asset that is considered stable, in order to limit the volatility of the token’s price. Such a token can, for example, be linked to an individual or a basket of currencies, real estate, securities or commodities. Examples of such stablecoins include Tether, TrueUSD and DigixDAO. FINMA has published guidance on the regulatory requirements applicable to activities relating to stablecoins and has, in particular, clarified that issuers of stablecoins must ensure that all relevant AML requirements are adhered to in the context of the issuance and transfer of stablecoins. Further, to the extent that the stablecoin holder has a monetary redemption claim against the issuer, the issuance of such stable coins may qualify as regulated deposit taking. Ultimately, FINMA assesses each stablecoin on a case-by-case basis.

Under the FMIA, Swiss law provides for a specific licensing category for trading venues allowing for the trading of ledger-based securities (DLT trading venues). Licensed DLT trading venues are authorised to provide services in the areas of trading, clearing, settlement and custody of ledger-based securities to both regulated and unregulated financial market participants, including retail investors. Pursuant to the Financial Market Infrastructure Ordinance, complex financial products qualifying as ledger-based securities, such as derivatives, may also be admitted to trading on a DLT trading venue, as long as such products do not provide for a time value or a leverage component. Under certain conditions, the trading of cryptocurrencies may also be permitted on a DLT trading venue, where such venues are essentially modelled on existing, traditional trading facilities and are subject to similar requirements (such as stock exchanges and multilateral trading facilities). However, the FMIA provides specific rules for DLT trading venues governing the admission of participants. In a noteworthy development in the context of Switzerland’s crypto regulation, BX Digital, a Swiss-based digital asset exchange, received a licence from FINMA in 2025 to operate as a DLT trading venue. 

The Swiss regulatory framework provides for the following main supervisory responsibilities.

• FINMA: FINMA is the integrated conduct and prudential supervisor for banks, securities firms, asset managers, funds, insurers and DLT trading facilities. It licenses entities, issues circulars and guidance, recognises minimum industry standards and exercises intervention, recovery and resolution powers.
• SNB: The Swiss National Bank (SNB) safeguards monetary stability and oversees systemically important financial market infrastructures, sets resilience expectations, and collaborates with FINMA on SIB supervision and systemic stability. It represents Switzerland at the Bank for International Settlements (BIS) and the Financial Stability Board (FSB).

Additional regulations/actors include the SIX Exchange Regulation for issuer and trading surveillance on the SIX Swiss Exchange; external audit firms supporting FINMA’s supervisory model; FINMA-licensed supervisory organisations (SOs), which oversee independent asset managers and trustees; and FINMA-licensed self-regulatory organisations, which oversee the AML compliance of financial intermediaries not subject to prudential FINMA supervision.

The relevant Swiss legislation can be found in the following places.

• Binding rules and supervisory guidance are available on FINMA’s website, including statutes, ordinances, circulars, position papers, risk monitors and enforcement communications. Key cross-cutting circulars cover operational risk and outsourcing, corporate governance and remuneration, market conduct, AML and technology risk.
• The client adviser registers also provide for websites with rules and regulations and further information on FinSA.
• Industry self-regulation by the SBA and AMAS addresses suitability and appropriateness processes, client documentation, mortgage affordability and sustainability-related disclosures and labelling. FINMA may recognise such standards as minimum requirements, making them supervisory expectations in practice.
• SNB publications set requirements for financial market infrastructures and communicate macroprudential assessments relevant to liquidity, collateral and funding markets.

Switzerland has implemented the Basel III framework and is rolling out the final reforms, including credit risk revisions, market risk (Fundamental Review of the Trading Book; FRTB), credit valuation adjustment (CVA), an operational risk-standardised approach and the output floor. The Federal Council’s revisions to the CAO enter into force through phased application to align banks’ systems and reporting, and are expected to take full effect according to an internationally co-ordinated timeline.

Swiss specifics include higher leverage and going-/gone-concern capital expectations for SIBs, Pillar 2 surcharges and robust total loss-absorbing capacity (TLAC) requirements for SIBs. Post-Credit Suisse crisis policy work also targets improved loss-absorbing capacity, intra-group loss transfer, and more effective early intervention and resolution toolkits.

Switzerland has not yet migrated cash equity markets to T+1. Market infrastructure operators and participants are preparing for a co-ordinated transition, with planning oriented to align with major markets and the EU timetable. The Swiss Securities Post-Trade Council (“swissSPTC”) recommended moving to T+1 in October 2027.

Firms are advancing settlement discipline, securities lending capacity and funding processes to manage shortened cycles, particularly for cross-border activity and corporate actions.

While Switzerland does not mirror the EU Sustainable Finance Disclosure Regulation (SFDR) regime, sustainability is embedded through FinSA conduct duties, prospectus liability and product-specific requirements. Asset managers and banks increasingly follow SBA and AMAS self-regulation on integrating client ESG preferences, and on fund naming and transparency.

FINMA has acted on greenwashing risks by scrutinising sustainability-related funds and disclosures, requiring clarity on investment strategy, exclusions, stewardship and key performance indicators (KPIs). Supervisory reviews have led to adjustments of product documentation and marketing, and firms are expected to align claims with measurable processes and data.

Policy work at the federal level is progressing on minimum sustainability transparency and anti-greenwashing standards. Institutions should anticipate evolving disclosure expectations for both product- and entity-level climate metrics.

FINMA views artificial intelligence (AI) as subject to existing rules on governance, operational risk, data quality, outsourcing and risk management. Supervisory communications highlight explainability, human oversight, robust validation, bias testing, data lineage and incident management as core expectations. Whilst the use of AI is not specifically governed under Swiss law, FINMA has published its regulatory expectations relating to the use of AI by financial institutions.

• Governance and responsibility: Clear roles, responsibilities and risk management processes must be defined and implemented. The responsibility for decisions cannot be delegated to AI or third parties. Everyone involved must have sufficient expertise in AI. Therefore, use of third-party or generative models should be managed through rigorous vendor risk frameworks and secure development practices, with board-level oversight of material deployments
• Robustness and reliability: When developing, training and using AI, institutions need to ensure that the results are sufficiently accurate, robust and reliable. Both the data and the models, as well as the results, need to be open to critical questioning.
• Transparency and explicability: Institutions must ensure that the results of an AI-based application are explicable and that the use of the application is transparent, taking into account the recipient, the relevance of the AI use and the process integration.
• Non-discrimination: Institutions must avoid unjust discrimination, for example when assessing individual risk profiles in lending approval procedures.

The Swiss regulatory approach is “innovation-friendly but risk-focused”. The sandbox (CHF1 million deposits or crypto-assets without interest and with a disclaimer; see the foregoing) and the FinTech licence (up to CHF100 million deposits or crypto-assets without interest) enable new models while maintaining client protection and AML safeguards. This approach has been confirmed by the Swiss Federal Council under the new and recently published draft legislation, which further develops the Swiss fintech framework (see the following).

The SNB is successfully advancing wholesale central bank digital currency (CBDC) experiments on Swiss infrastructure and has extended pilots with financial institutions for tokenised central bank money settlement. Retail CBDC is not being pursued at this stage; the SNB prioritises efficient wholesale settlement and private-sector tokenised deposit solutions.

A recent SBA white paper introduces the concept of the “book money token” (BMT), a digital currency designed to support Switzerland’s digital economy. The BMT is envisaged to take the form of a stablecoin based on DLT and aims to enhance transaction efficiency, reduce risks and open new business opportunities. It is intended to maintain the Swiss Franc’s stability and technological sovereignty. The BMT will be programmable, leveraging smart contracts for complex applications, and it will be issued by regulated intermediaries. The white paper explores three variants of the BMT, with the “joint token” model being the most promising. This model involves a consortium of banks issuing a unified BMT, ensuring stability and broad acceptance. The initiative aims to bolster Switzerland’s financial infrastructure and digital economy.

The Swiss regulatory regime provides for various provisions and rules protecting retail clients.

• FinSA imposes client segmentation, suitability and appropriateness checks, clear cost and risk disclosures, and documentation duties for retail clients. The CCA adds affordability testing and standardised pre-contract information for consumer loans.
• Banks follow SBA standards on mortgage affordability, advisory processes and complaint handling, with ombudsman schemes providing out-of-court redress. FINMA expects fair treatment, accessible communication and monitoring of fraud and scam risks, particularly for elderly or digitally less experienced customers.

FINMA monitors non-bank financial intermediation across funds, securities financing, crypto-asset service providers and financing vehicles. The State Secretariat for International Finance (SIF) has mapped Swiss non-bank financial institution (NBFI) activities, highlighting liquidity mismatch, leverage and interconnectedness channels that could transmit stress to banks and markets.

After an initial review by the licensing auditor, applicants submit a detailed application to FINMA in an official Swiss language, covering the business model, governance, risk management, capital and liquidity planning, AML framework, outsourcing, IT and cyber controls, and three-year financial projections. Fit-and-proper assessments apply to the board and executive management, and qualified shareholders must also demonstrate soundness. FINMA requires a licensing audit report by a regulatory auditor (it may waive this in specific, rare cases). Authorisation is granted by decree once requirements are satisfied; material post-licensing changes to purpose, scope, capital or organisation require prior FINMA approval.

Foreign-controlled or group entities provide evidence of reciprocity, home supervisor consent and details on consolidated supervision. Pre-filing meetings with FINMA are common and help resolve surface model-specific issues, documentation needs and potential conditions.

FINMA is not subject to a statutory deadline for the assessment of licensing applications. Typically, however, the licensing procedure takes 12–18 months, depending on the complexity of the business model, the operational readiness of the applicant and the group structures.

FINMA charges cost-based fees. As a guide, banking and securities firm authorisations are commonly invoiced as a lump sum between CHF10,000 and CHF100,000, with modification fees generally ranging from CHF3,000 to CHF30,000; complex matters may be billed based on the work performed.

The Swiss regulatory framework does not provide for a formal “senior managers regime”. Nevertheless, board members and executives must be fit and proper; devote sufficient time; and ensure effective governance, risk and control frameworks. FINMA can impose measures on individuals, including activity bans, where misconduct or serious breaches occur (see also the following for an overview of potential new legislation).

Further, institutions should maintain clear role descriptions, documented delegations and evidence of challenge and oversight. Early engagement with FINMA on key appointments is prudent, particularly for SIBs.

The Swiss legislator has announced various legislative initiatives that may be of relevance for financial service providers:

Basel III Finalisation and SIB Resilience

Phased implementation of the final Basel III reforms continues for Swiss banks. In April 2024, the Federal Council published its evaluation report on banking stability under which it, inter alia, (i) published its assessment of the circumstances surrounding the crisis of Credit Suisse and (ii) defined various legislative measures to strengthen the Swiss TBTF regime. In an additional report published in June 2025, the Federal Council further detailed the intended legislative measures and announced that a draft bill relating to the TBTF regime will be published in early 2026. The legislative initiatives include the introduction of a Senior Managers Regime, FINMA powers to issue administrative fines and early intervention measure and certain clarifications to the current resolution framework.

Innovative Business Models

Recently, the Swiss Federal Council published draft legislation under which the fintech licence (see the foregoing), as currently set out under the BA, would be replaced by a new licensing category as a payment institution. This new licensing category will be introduced under the FinIA. Under the new regime, the threshold of CHF100 million will no longer apply, meaning that licensed payment institutions will be permitted to accept deposits without any limitations as to the relevant amounts, as long as such deposits are not invested and no interest is paid thereon. In addition, the draft legislation provides for the introduction of a new licensing category as a crypto custodian and a comprehensive framework governing the issuance of stablecoins.