Switzerland’s financial watchdog FINMA reports supervisory cases against independent portfolio managers surged to 68 in 2025, doubling from 34 the previous year and up sharply from just nine in 2023. The regulator warns that client assets at risk range from tens of millions to several hundred million Swiss francs, with retirement savings among the threatened funds. The cases involve roughly 1,664 licensed managers and trustees operating under the Financial Institutions Act regime that took full effect in late 2022.
FINMA identified recurring violations including conflicts of interest when managers push in-house products, inadequate suitability assessments, and placement of complex instruments with unsuited clients. The enforcement wave mirrors broader European regulatory action, with Cyprus’s CySEC launching conflict-of-interest inspections in March and ESMA highlighting same-group product issuance risks in February. Unlike retail CFD enforcement, FINMA’s focus targets discretionary wealth managers serving affluent clients through foreign funds, structured certificates, and lightly supervised proprietary vehicles.
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FXnCO Insight
** Wealth managers using third-party custodians or complex in-house products should expect heightened regulatory scrutiny and documentation requirements across European jurisdictions through 2026.
Source: Finance Magnates