After years of regulatory limbo, Swiss asset managers
are once again welcome in the United States. The U.S. Securities and Exchange
Commission has confirmed it will resume processing registration applications
from investment advisers based in Switzerland.
This move has ended a prolonged suspension that has
kept new entrants from tapping into U.S. markets. The change follows direct
discussions between the SEC and the Swiss Financial Market Supervisory
Authority (FINMA), which led to a mutual understanding on how both regulators
will oversee cross-border activity.
The breakthrough brings relief to Swiss entities
offering investment advice and wealth management services, who are required to
register with the SEC if they serve U.S. clients.
Restart After Years of Silence
The SEC had stopped processing applications from Swiss
firms for several years, citing unresolved issues around regulatory oversight,
particularly concerning access to records and on-site inspections. The latest
agreement addresses those concerns.
Under the new arrangement, Switzerland-based
investment advisers supervised by FINMA and registered with the SEC can
directly transmit required documents, including those containing personal data,
to the SEC.
Additionally, SEC staff will now be able to conduct
on-site inspections in Switzerland, in line with both U.S. securities laws and
Swiss legal provisions such as Articles 42c and 43 of the Financial Market
Supervision Act (FINMASA).
Atkins emphasized that foreign advisers’ longstanding interest in joining the U.S. system reflects trust in its regulatory
structure. He also credited FINMA’s collaboration in resolving legal and
procedural obstacles.
FINMA and the SEC now have a shared framework that
enables both regulators to fulfill their oversight duties without compromising
national laws, allowing the cross-border investment advisory business to resume
on stable terms.
A Win for Swiss Asset Managers
The move could open doors for a new wave of Swiss
asset managers eager to expand into the U.S. or serve American clients more
freely. For many, the frozen registration process had stalled growth plans and
limited their ability to offer competitive cross-border services.
Now, with clear rules and open channels between the
two financial regulators, Swiss advisers may find it easier to navigate the
dual regulatory landscape and re-engage with the world’s largest capital
market.
This article was written by Jared Kirui at www.financemagnates.com.
