SEC Reopens Door to Swiss Asset Managers After Years of Regulatory Freeze ⋅ Crypto World Echo
After years of regulatory limbo, Swiss asset managersare once again welcome in the United States. The U.S. Securities and ExchangeCommission has confirmed it will resume processing registration applicationsfrom investment advisers based in Switzerland.
This move has ended a prolonged suspension that haskept new entrants from tapping into U.S. markets. The change follows directdiscussions between the SEC and the Swiss Financial Market SupervisoryAuthority (FINMA), which led to a mutual understanding on how both regulatorswill oversee cross-border activity.
The breakthrough brings relief to Swiss entitiesoffering investment advice and wealth management services, who are required toregister with the SEC if they serve U.S. clients.
Restart After Years of Silence
The SEC had stopped processing applications from Swissfirms for several years, citing unresolved issues around regulatory oversight,particularly concerning access to records and on-site inspections. The latestagreement addresses those concerns.
“The US Securities and Exchange Commission will resume processing applications from FINMA-supervised Swiss entities who want to conduct business as Registered Investment Advisers in the USA,” FINMA mentioned.
Under the new arrangement, Switzerland-basedinvestment advisers supervised by FINMA and registered with the SEC candirectly transmit required documents, including those containing personal data,to the SEC.
Additionally, SEC staff will now be able to conducton-site inspections in Switzerland, in line with both U.S. securities laws andSwiss legal provisions such as Articles 42c and 43 of the Financial MarketSupervision Act (FINMASA).
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Atkins emphasized that foreign advisers’ longstanding interest in joining the U.S. system reflects trust in its regulatorystructure. He also credited FINMA’s collaboration in resolving legal andprocedural obstacles.
FINMA and the SEC now have a shared framework thatenables both regulators to fulfill their oversight duties without compromisingnational laws, allowing the cross-border investment advisory business to resumeon stable terms.
A Win for Swiss Asset Managers
The move could open doors for a new wave of Swissasset managers eager to expand into the U.S. or serve American clients morefreely. For many, the frozen registration process had stalled growth plans andlimited their ability to offer competitive cross-border services.
Now, with clear rules and open channels between thetwo financial regulators, Swiss advisers may find it easier to navigate thedual regulatory landscape and re-engage with the world’s largest capitalmarket.
This article was written by Jared Kirui at www.financemagnates.com.
