AIMA submission to FINMA consultation on changes to FMIO-FINMA

Published: 04 October 2016


AIMA has submitted a response to the Swiss Financial Markets Supervisory Authority (FINMA) consultation paper on the partial revision of the Ordinance on Financial Market Infrastructures (FMIO-FINMA). The consultation paper proposes revisions to address practical problems experienced in the industry since the rules entered into force on 1 January 2016. Currently the notification duty with regard to client positions sits with individuals who control financial groups but do not necessarily perform any operational function or have any knowledge of client positions. FINMA is consulting on changes to ensure that disclosures are instead made by the persons managing the positions. Swiss member firm, Lenz & Staehelin, helpfully provided an analysis of the proposed changes and key outstanding issues for the industry, and based on this, AIMA developed a response in coordination with other members. The AIMA response indicates general support for the proposed changes, but also highlights a need to clarify the application of the regime to the disclosure of positions held by ‘sponsored funds’ (funds that depend on a group), as this remains an issue. In particular, we have sought clarity and consistency of the application of the standard of beneficial ownership, which appears to be applied differently depending on whether the concept is applied to funds or to other entities, potentially causing confusion for market participants. In this regard, we have suggested amendments to achieve an end where positions held by funds in a group are treated as client positions rather than own account positions, and aggregated and disclosed at the fund level, with client positions.  Please contact Adam Jacobs-Dean, Oliver Robinson or Adele Rentsch if you have any questions.