Setting up a family office / Question 2
Does a family office need a FINMA licence?
Not if it manages solely the assets of persons with family or business ties to it: the Financial Institutions Act does not apply to it. Once it manages assets for others on a commercial basis, it is a portfolio manager and needs FINMA’s authorisation before it starts. Your lawyer confirms which applies.
Antevo Mandates · A written reply, usually within one business day
01 / The exemption
Solely, and tied.
FinIA does not apply to persons who manage solely the assets of persons with whom they have business or family ties. (FinIA Art. 2(2)(a))
Business ties exist between companies or units of the same group that provide financial services to one another. (FinIO Art. 3) Family ties are set out person by person, and extend to an office controlled by the family or by a trust or foundation a family member set up. (FinIO Art. 4)
Make a private enquiry02 / Authorisation
Before the first outside mandate.
Portfolio managers require FINMA’s authorisation, and may be entered in the commercial register only after it has been granted. (FinIA Art. 5)
The requirements include an entry in the commercial register, a management of at least two qualified persons as a rule, and minimum capital of CHF 100,000 paid up in cash, with adequate collateral or professional liability insurance. (FinIA Arts. 18, 20 and 22)
FINMA grants the licence; a supervisory organisation then carries out the ongoing supervision. (FinIA Art. 61; FINMA)
Make a private enquiry03 / Where the line moves
Outside clients bring in the commercial test.
Once an office also manages assets for persons without such ties, the question becomes whether it does so on a commercial basis. The Financial Institutions Ordinance measures that with published thresholds. (FinIO Art. 19(1))
Activity for persons with family or business ties is left out of that assessment. (FinIO Art. 19(2))
Make a private enquiry04 / In Antevo
A private conversation about your office.
Antevo Mandates gives family offices and asset managers a morning review of their mandates, with client context and supporting evidence ready for their own assessment. It does not replace your lawyer or a licence. Write to us in confidence about your office.
Make a private enquirySources
Where this comes from.
The count behind the figures and the primary sources for every legal point. Intelligence, not advice: nothing here is legal, regulatory or tax advice, and your lawyer confirms whether and how the rules apply to your office.