Mandatory training and continuing education for asset managers
Mandatory training and continuing education for asset managers
The FinSA and FinIA have brought important changes for asset managers, particularly in the area of training and further education. In this article, you will learn about the legal basis for the duty to provide training and continued professional education, as well as which current changes are important in this area.
The complexity of the topic is already evident in the fact that the training regulations cannot be derived from just one uniform rule in the law or from one ordinance. Instead, there are several legal bases and different points of reference that can overlap in individual cases. In addition, it was left to the supervisory organizations to define specific requirements for the training obligation. These requirements were revised in July 2024.
Education and training requirements for asset managers as financial service providers
As a financial institution and financial service provider, an asset manager is obliged to have an appropriate internal organization that allows it to fulfil its legal obligations (Art. 9 FinIA, Art. 21 FinSA). Asset managers must ensure that their employees have the necessary skills, knowledge and experience for their activities (Art. 22 FinSA). For client advisors in particular, Art. 6 FinSA requires that they have sufficient knowledge of the FinSA rules of conduct and the necessary specialist knowledge.
To specify these requirements, Art. 12 para. 3 FinIO requires financial institutions to have personnel who are appropriate and qualified for their business activities. Art. 23 para. 1 let. b FinSO also requires asset managers to select their employees carefully and ensure that they receive the training in relation to the rules of conduct and the specific expertise that they need to perform their specific tasks.
Education and training requirements for management
Art. 20 para. 1 FinIA requires that the management of an asset manager must consist of at least two qualified persons. The relevant requirements are reviewed and assessed by the supervisory organizations and FINMA as part of the FinIA licensing procedure.
A person is deemed qualified for the management of an asset manager if they have appropriate training and sufficient professional experience in asset management for third parties (Art. 20 para. 3 FinIA). Art. 25 para. 1 FinIO specifies these requirements by requiring managing directors to have at least 5 years of professional experience and at least 40 hours of training. In addition, the skills acquired must be maintained through regular further training (Art. 25 para. 3 FinIO).
According to the explanatory report on the FinIO, the following professional experience can be listed as examples: Professional experience in investment advice in so-called private banking, working in so-called asset management at a fund management company or at an independent asset manager. With regard to appropriate training, the explanatory report also states that this may not only have been acquired during professional experience as an asset manager, but also in whole or in part as part of general prior education (e.g. completion of basic vocational training, higher vocational training or a technical or university college with a corresponding focus in Switzerland or abroad). It is also conceivable to have specified training courses (e.g. CAS, DAS, MAS), internal company training and qualifications that require corresponding preparation (e.g. CFA, TEP). In addition, FINMA could, in exceptional cases, also allow professional experience in the context of corresponding supervisory or auditing activities to be taken into account or weight professional experience that exceeds five years in favor of training.
New requirements of the supervisory organizations
For asset managers, fulfilling the training and further education obligations can entail organizational and financial costs that should not be underestimated. Unlike larger institutions such as banks, they are generally unable to set up and run their own training system. It can be advantageous for asset managers to make use of the training services of external providers, both in terms of fulfilling the requirements for managing directors within the scope of the FinIA licensing procedure and with regard to the ongoing training and further education of staff.
In the past, the supervisory organizations have agreed on minimum standards for the continuing education requirements of asset managers. It was usually defined in tabular form how many hours in which subject areas must be completed each year.
FINMA has now commented on this topic to the supervisory authorities. According to FINMA, minimum standards should no longer be defined by the supervisory authorities. Rather, it is the responsibility of the qualified managing directors to ensure that the above-mentioned legal requirements for appropriate further training are met.
The supervisory organizations have now confirmed that they will waive the rigid requirements of at least 8 hours of annual training for qualified managing directors and other persons concerned. However, the financial institution must continue to provide annual proof that appropriate further training has taken place within the framework of the regulatory requirements.
Need for action
The regulatory framework has not been amended. Annual further training in the areas of AMLA and FinSA is still mandatory. Further training must be ensured by the qualified managing directors. This change in practice by FINMA and the supervisory organizations should be taken as an opportunity to review your own internal training program.
We would be happy to help you adapt your training program or conduct targeted training courses for your institution.
Education and training requirements for asset managers as financial service providers
As a financial institution and financial service provider, an asset manager is obliged to have an appropriate internal organization that allows it to fulfil its legal obligations (Art. 9 FinIA, Art. 21 FinSA). Asset managers must ensure that their employees have the necessary skills, knowledge and experience for their activities (Art. 22 FinSA). For client advisors in particular, Art. 6 FinSA requires that they have sufficient knowledge of the FinSA rules of conduct and the necessary specialist knowledge.
To specify these requirements, Art. 12 para. 3 FinIO requires financial institutions to have personnel who are appropriate and qualified for their business activities. Art. 23 para. 1 let. b FinSO also requires asset managers to select their employees carefully and ensure that they receive the training in relation to the rules of conduct and the specific expertise that they need to perform their specific tasks.
Education and training requirements for management
Art. 20 para. 1 FinIA requires that the management of an asset manager must consist of at least two qualified persons. The relevant requirements are reviewed and assessed by the supervisory organizations and FINMA as part of the FinIA licensing procedure.
A person is deemed qualified for the management of an asset manager if they have appropriate training and sufficient professional experience in asset management for third parties (Art. 20 para. 3 FinIA). Art. 25 para. 1 FinIO specifies these requirements by requiring managing directors to have at least 5 years of professional experience and at least 40 hours of training. In addition, the skills acquired must be maintained through regular further training (Art. 25 para. 3 FinIO).
According to the explanatory report on the FinIO, the following professional experience can be listed as examples: Professional experience in investment advice in so-called private banking, working in so-called asset management at a fund management company or at an independent asset manager. With regard to appropriate training, the explanatory report also states that this may not only have been acquired during professional experience as an asset manager, but also in whole or in part as part of general prior education (e.g. completion of basic vocational training, higher vocational training or a technical or university college with a corresponding focus in Switzerland or abroad). It is also conceivable to have specified training courses (e.g. CAS, DAS, MAS), internal company training and qualifications that require corresponding preparation (e.g. CFA, TEP). In addition, FINMA could, in exceptional cases, also allow professional experience in the context of corresponding supervisory or auditing activities to be taken into account or weight professional experience that exceeds five years in favor of training.
New requirements of the supervisory organizations
For asset managers, fulfilling the training and further education obligations can entail organizational and financial costs that should not be underestimated. Unlike larger institutions such as banks, they are generally unable to set up and run their own training system. It can be advantageous for asset managers to make use of the training services of external providers, both in terms of fulfilling the requirements for managing directors within the scope of the FinIA licensing procedure and with regard to the ongoing training and further education of staff.
In the past, the supervisory organizations have agreed on minimum standards for the continuing education requirements of asset managers. It was usually defined in tabular form how many hours in which subject areas must be completed each year.
FINMA has now commented on this topic to the supervisory authorities. According to FINMA, minimum standards should no longer be defined by the supervisory authorities. Rather, it is the responsibility of the qualified managing directors to ensure that the above-mentioned legal requirements for appropriate further training are met.
The supervisory organizations have now confirmed that they will waive the rigid requirements of at least 8 hours of annual training for qualified managing directors and other persons concerned. However, the financial institution must continue to provide annual proof that appropriate further training has taken place within the framework of the regulatory requirements.
Need for action
The regulatory framework has not been amended. Annual further training in the areas of AMLA and FinSA is still mandatory. Further training must be ensured by the qualified managing directors. This change in practice by FINMA and the supervisory organizations should be taken as an opportunity to review your own internal training program.
We would be happy to help you adapt your training program or conduct targeted training courses for your institution.