Forex Regulatory Tips
According to FINMA's official website, the Swiss Financial Market Supervisory Authority ("FINMA") regulates leveraged foreign exchange transactions.
In Switzerland, any transaction that accepts deposits for third-party financing is called a banking activity. Therefore, all foreign exchange dealers must have bank qualifications. The bank also reserves the right to perform foreign exchange transactions for customers, that is, all FINMA authorized banks can provide foreign exchange transactions.
The Swiss Financial Market Supervisory Authority FINMA is a government agency headquartered in Bern, the capital of Switzerland. It is directly accountable to the Swiss Parliament and remains functionally and financially independent.
FINMA was established in 2009 and its predecessors were the Swiss Federal Banking Commission (SFBC), the Federal Office for Private Insurance (FOPI) and the Anti-Money Laundering Supervisory Authority (AMLCO).
The authority integrates the previous functions of the aforementioned agencies and has overall responsibility for all financial supervision in Switzerland.
FINMA is divided into eight divisions.
Board of Directors and Executive Board
FINMA is an independent regulator with a modern management structure consisting of a board of directors, an executive board and external auditors. The board of directors is responsible for strategic management, the executive board is responsible for operational management, and the external audit is the Swiss Federal Audit Office (SFAO).
As the strategic management body of FINMA, under the Financial Market Regulation Act, the Board of Directors consists of 7 to 9 independent experts. It decides important matters, issues regulations and circulars, and is responsible for FINMA's budget. It also ensures internal control through the Internal Audit Unit and the Oversight Executive Board.
Executive work is managed by the Executive Board, which consists of nine members: a Chief Executive and eight Divisional Directors. The Executive Board prepares the necessary documents and materials for the decision of the Board of Directors and is responsible for implementing the resolutions of the Governing Body. All matters not belonging to the Board of Directors are at the discretion of the Executive Committee.
1) Supervision of financial markets and financial institutions;
2) To protect financial market customers - creditors, investors and policyholders;
3) Ensuring the efficient functioning of Swiss financial markets;
4) Standardize authorized activities;
5) FINMA adopts a systemic risk-oriented approach in carrying out surveillance activities;
Strengthen and maintain the stability of the financial system and promote public trust in financial markets.
Note: License changes for banks and securities dealers must first be permitted or authorized by FINMA.
A license may be required for business involving dealing with banks or securities.
How do I apply for a banking license?
For details, please click this link:
(1) Meet with FINMA representatives to present their license application projects and get preliminary feedback;
(2) Submit the application form (more information may be required);
(3) FINMA approves and decides whether to issue a license;
Note: Before applying for a license, arrange with a FINMA representative to present its license program (questionnaire - submitted to the authorized department of the FINMA banking department, preliminary assessment (often incurring a fee) and authenticity survey) and receive initial feedback.
Generally, it takes 6 months for banks to obtain a Swiss business license; it may take longer, depending on the type of license, complexity, and completeness of data.
1. Bank and securities broker license;
2. Insurance Issuer License;
3. Concentrated investment scheme license;
4. Financial Market Infrastructure License;
5. Fund management company license;
6. Asset management company license;
The first step: enter the Swiss FINMA regulatory inquiry page
Method 1: Visit the FINMA inquiry address: https://www.finma.ch/en
Method 2: Directly visit the FINMA query address: https://www.finma.ch/en/finma-public/authorised-institutions-individuals-and-products/
Step 2: Open the website of the Swiss Financial Market Supervisory Authority: https://www.finma.ch/de and select the language English (EN).
Step 3: Enter the search page through "Authorisation" → "Licensed institutions and persons".
Step 4: Scroll down the page. First select the "Banks and securities dealer" category in "Category", then enter the company name in the previous column. The company name, address and other information will appear below, please check carefully.
If you have a bank qualification, you can definitely find it in the Banks and Securities dealers category in Authorised Insitituations.
Some companies claim that it is regulated by SRO in Switzerland, but it should be informed that the SRO is only a self-regulatory organization and does not supervise the business behavior of the company. The API that ran away before claiming to be regulated by Switzerland is actually only a member of the self-regulatory body.
The following are all self-regulatory bodies within the SRO entries below FINMA, please note that these self-regulatory bodies do not supervise foreign exchange dealers and do not exercise any prudential control over the company's business conduct:
Currently the common Swiss foreign exchange dealers entering China are Dukascopy and Swissquote Bank, both of which are established foreign exchange dealers. When any new platform claims to be regulated in Switzerland, be cautious and check for banking credentials.
Note: The previous MIGBank has been merged into SwissquoteBank.
If you are not satisfied with your investment, you can file a complaint in 3 steps:
Step 1 Complain to the foreign exchange dealer (bank) first;
Step 2 If you are not satisfied with the dealer's response, you have 2 complaint channels: 1. Contact FINMA; 2. Contact Swiss SBO (Swiss Bank Ombudsman).
1. There are two ways to contact FINMA:
(1) Online complaint method: fill in the form - submit
Online complaint link: https://www.finma.ch/en/finma-public/reporting-information/
Online Complaint Form Translation Reference Template (please click the image below to view the complete translation template):
(2) Other contact information:
Email: [email protected]
Tel: +41 31 327 91 00
Fax: +41 31 327 91 01
Working hours: Monday to Friday 8:00 am - 12:00 am (Switzerland does not work in the afternoon)
Note: Briefly state what the complaint is about and the outcome of your complaint you want. If the bank has given the outcome of your complaint, please inform FINMA of the outcome together with your complaint.
2. To contact the Swiss SBO (Swiss Bank Ombudsman), there are two ways:
(1) Telephone complaints;
+41 (0)43 266 14 14 German/English
+41 (0)21 311 29 83 French/Italian
Working hours: Monday to Friday 8:30 am - 11:30 am (Switzerland does not work in the afternoon)
(2) Mail complaints: Complaint form and authorization letter are required
The online complaint form translation reference template is as follows:
Form address: http://www.bankingombudsman.ch/wp-content/uploads/2015/07/Banking-Ombudsman_Flyer.pdf
The reference template for the translation of the online complaint authorization letter is as follows:
Form address: http://www.bankingombudsman.ch/wp-content/uploads/2014/01/Eingabeformular_en.pdf
Step 3 Complain to the court;
If you are not satisfied with the outcome of your complaint with FINMA and the SBO, you can lodge a complaint with the court.
1. What should I do if the investor has a dispute with the bank?
Complain to the foreign exchange dealer (bank) first;
If you are not satisfied with the dealer's response, there are 2 ways to make a complaint:
(1) Contact FINMA;
(2) Contact the Swiss SBO (Swiss Bank Ombudsman).
2. How to get compensation or mediation compensation from the bank?
Contact the Swiss Banking Ombudsman SBO. The SBO handles banking disputes in Switzerland, providing independent information and mediation. If the SBO cannot be resolved, a complaint can be made to the court.
3. If the bank goes bankrupt, can the savings deposit be recovered?
can. If the bank goes bankrupt, each depositor can get compensation of up to 100,000 francs (about 600,000 yuan). If the bank is unable to compensate, it will trigger the depositor protection plan mechanism; according to this plan, depositors can be compensated within 20 working days.
4. If the bank goes bankrupt, can the deposited shares be recovered?
can. Unlike savings deposits, deposited assets (like stocks, funds, and other securities) are kept separately in a completely segregated account. Once the bank goes bankrupt, all the assets in this account will be returned to the customer. The same principle applies to precious metals stored in banks.
For more questions, please follow the link: https://www.finma.ch/en/finma-public/fragen-und-antworten/
Swiss Bankers Association (SBA): http://www.swissbanking.org/de
Swiss Federal Department of Finance (SFDF): http://www.efd.admin.ch
Swiss Federal Financial Management (SFBC): http://www.finma.ch
Swiss National Bank (SNB): http://www.snb.ch
Swiss Chamber of Commerce in Geneva (CCIG): http://www.ccig.ch
Swiss Federal Anti-Money Laundering Self-Regulatory Organization (PolyReg): http://www.polyreg.ch
Swiss OAR-G: http://www.oarg.ch (self-regulatory organization)
Tel: 41 31 327 98 88 (Monday to Friday 8:00am-12:00am)
Fax: 41 31 327 91 01
Email: [email protected]
Address: Swiss Financial MarketSupervisory Authority FINMA, Laupenstrasse 27,3003Bern
Online contact (form): https://www.finma.ch/en/contact/enquiries-contact-form/