The new regulation of professional trustees in Switzerland

Abstract The Swiss federal legislator adopted a new federal act on financial institutions (FinIA).1 This legislation came into force on 1 January 2020. It subjects professional trustees and wealth managers to a new licensing and supervisory regime. This law affects not only Swiss institutions, but also foreign institutions operating in Switzerland, whether through a subsidiary, a branch or a representative office. We are approaching the end of the three-year transitional period (from 1 January 2020 to 31 December 2022) during which the institutions concerned must comply with the new legal requirements. This article analyses the scope of the new authorisation and supervision regime, the obligations of professional trustees under the new regulation, the new system of supervision of trustees, the specific rules applying to Swiss branches or representative offices of foreign trustees, the sanctions in case of infringement of obligations and the transitional provisions. This article is mainly addressed to trustees, but the new regulation also applies to professional wealth managers.