Persons according to 180a Act

Client protection is especially ensured by monitoring the licensing requirements and permanent compliance with the licensing conditions as well as by cooperating with the competent authorities such as the Courts, the Office of the Public Prosecutor and the Financial Intelligence Unit. The legal foundations are the Financial Market Authority Act (FMA Act) and the Act regarding the supervision concerning persons according to article 180a PGR (180a Act).

Monitoring of compliance with licensing conditions

After granting the licence, the FMA monitors permanent compliance with the licensing conditions. If there are grounds for suspicion that the licensing conditions are no longer met, the FMA initiates supervisory proceedings and seizes the necessary measures in order to restore the lawful state or to abolish deficits. Furthermore, the FMA is entitled to revoke or cancel licences according to legal conditions.

Penalizing certain administrative offences

The FMA shall punish by a fine of up to 100,000 Swiss francs for committing an administrative offence anyone who:

• fails to comply with the obligation to report and give information;
• fails to comply with an order, directive or sanction by the FMA;
• refuses to give information, makes incorrect statements, withholds significant facts or refuses to issue information and documents vis-à-vis the FMA, an auditor, or an auditing company;
• fails to comply with obligations or preconditions connected with the granted licence.

Cooperation with competent authorities

To combat abuse, the FMA works closely together with the competent bodies (Office of the Public Prosecutor, courts, and authorities). With the exception of national and international obligations to cooperate, the FMA in principle does not provide information about ongoing proceedings.

Based on a legal provision, the FMA informs the Office of Justice, Commercial Register Division about granting, revoking, ceasing, suspension or cancellation of a licence as well as about a limited prohibition to exercise activities according to article 180a PGR, a limited prohibition of assuming new board mandates according to article 180a PGR as well as about the abolishment of such prohibitions.

Institutions for the protection of clients

FMA: The FMA’s competence covers the points referred to above. In particular, it is not responsible for civil disputes between persons according to 180a Act and their clients.

Court of Justice: Punishment of misdemeanors (article 22 180a Act)