An SRO membership is an affiliation with a Self-Regulatory Organization (SRO) supervised by FINMA. As an SRO member, you are not directly overseen by FINMA. This affiliation, also known as "AML registration" or commonly referred to as a crypto license or payment intermediary license, allows you to engage in all financial activities that do not require FINMA licensing. It is an attractive status due to its simplicity and quick acquisition. An SRO membership enables you to conduct businesses such as:
• Currency & crypto exchanges
• Payment processing
• Remittance
• Crypto services (e.g., crypto wealth management, custody, etc.)
• Precious metals dealing and commodities trading
• Lending operations
SynHedge supports you throughout the authorization process.
For more information, please download our presentation.
The fintech license, as defined under Article 1b of the Swiss Banking Act, is a "light" banking license granted by FINMA. This license allows for the conduct of most banking activities, excluding asset management and securities trading, with certain restrictions. Specifically, it permits the acceptance of client funds up to CHF 100 million, though many funds received may not count toward this limit depending on their origin (e.g., funds from corporates with professional treasury management). This license is often compared to an EMI license in the UK or Europe, but it offers additional benefits.
Key Benefits:
- Direct Access to the Swiss National Bank: Enables the opening of a sight account and access to the SIC, euroSIC, and indirectly SEPA payment systems.
- Ideal For: Payment institutions, remittance services, fintech and digital banking, crypto exchanges with omnibus wallets, and acquiring & issuing businesses.
SynHedge supports you throughout the entire licensing process and beyond, ensuring a smooth and efficient application.
For more information, please download the brochure below.
The Portfolio Manager License is a dual authorization issued by FINMA in conjunction with affiliation to a Supervisory Organization (SO). This license enables the management of client portfolios and provides investment advisory services. Specifically, it authorizes the management of third-party funds based on a power of attorney, as well as investment funds under the "minimus" rules. This license is commonly referred to as an asset management license or wealth management license.
Key Features:
- Portfolio Management: Allows the management of client funds with appropriate authorization and adherence to regulatory standards.
- Investment Advisory: Permits offering investment advice to clients.
- Additional Activities: This license also covers nearly all activities permissible under an SRO membership.
SynHedge provides comprehensive support throughout the entire FINMA licensing process, including the necessary affiliation with a Supervisory Organization (SO), ensuring a seamless and efficient application experience.
The Manager of Collective Assets License is an authorization issued directly by FINMA, without the requirement for affiliation with a Supervisory Organization (SO), unlike the Portfolio Manager License. This license permits the management of collective investment schemes and occupational pension schemes, with no restrictions regarding assets under management (AUM) or the type of investors, allowing inclusion of both qualified and retail investors.
The Manager of Collective Assets oversees the portfolio management and risk management of assets entrusted to them, ensuring compliance with regulatory standards.
SynHedge provides expert guidance throughout the FINMA licensing process, ensuring efficient navigation and compliance with all regulatory requirements for a Manager of Collective Assets license.
The Fund Management License, regulated under the Financial Institutions Act (FinIA), is a comprehensive authorization granted by FINMA to entities that manage and administer investment funds.
This license, often referred to as “Manco”, permits firms to:
Manage contractual investment funds independently in their own name and for the account of investors or administer a SICAV (Société d’investissement à capital variable).
Offer and distribute fund units in investment funds.
Administer the fund, ensuring compliance with regulatory and operational standards.
Safeguard and conduct the technical management of collective investment schemes.
Perform asset management duties within the investment fund, ensuring strategic allocation and performance.
SynHedge supports you throughout the entire licensing process.
For more information, please download the brochure below.
The Security Firms License is a FINMA authorization that permits a wide range of activities related to securities trading. This includes security trading on behalf of third parties, market making, asset management, underwriting, and issuing derivatives. Additionally, this license enables the operation of an Organized Trading Facility (OTF), which serves as a secondary market for trading securities. It also allows for all activities permissible under a Portfolio Manager License.
Certain family offices may also require this license if they engage in short-term securities trading for their own account, are actively involved in financial markets, and operate as members of trading platforms.
The Banking License is the most comprehensive FINMA authorization, allowing for all banking and securities activities under one license. It represents the broadest scope of financial operations.
SynHedge offers full support throughout the entire licensing process.
A Principal Membership with Visa or MasterCard allows financial institutions to issue their own branded cards, gaining full control over card programs and earning interchange fees directly. As part of the Principal Membership, the institution is assigned a BIN (Bank Identification Number), which identifies it as the card issuer. The BIN is crucial for processing transactions, enabling the institution to manage risk, set terms, and fully control its card programs, further solidifying its position in the market.
SynHedge is here to guide you through the membership application process, ensuring you meet all regulatory requirements efficiently and effectively.
The activity of credit brokering requires an additional cantonal authorization. These authorizations are granted by the cantons but are valid across Switzerland. Additionally, an SRO membership is often necessary, as credit brokering is considered a financial intermediary activity subject to AML regulations.
Individuals seeking a credit broker authorization must:
- Have a good reputation and demonstrate a commitment to impeccable conduct.
- Have no criminal convictions related to the activity in the five years preceding the authorization application.
- Not have any acts of bankruptcy against them.
- Possess three years of experience in the financial services sector.
- Provide securities amounting to CHF 10,000 to cover potential damages arising from the activity.
These securities can be established through one of the following means: a. Adequate professional liability insurance; b. A guarantee or surety from a bank or an equivalent security; c. A blocked account with a bank.
SynHedge supports you throughout the authorization process.
In response to the amendments to the Anti-Money Laundering Act and the Precious Metals Control Act, which took effect on January 1, 2023, individuals and businesses involved in purchasing materials for melting into precious metals are now required to undergo regulatory oversight. This new regulation mandates that those engaged in buying used precious metals, such as old jewelry and manufacturing waste containing recoverable precious metals, must either register or obtain a license from the Central Precious Metals Control Office by January 1, 2024.
Entities registered with the Swiss Commercial Registry must register with the Central Precious Metals Control Office. Those not registered must apply for a license from the same office.
In addition to obtaining the necessary registration, engagement in precious metals trading requires in principe also an affiliation with a Self-Regulatory Organization (SRO) to comply with Anti-Money Laundering and Counter-Terrorism Financing laws.
SynHedge is here to guide you through the registration process, ensuring you meet all regulatory requirements efficiently and effectively.
Introduced in 2021, the DLT Trading Facility License authorizes the operation of a financial market infrastructure specifically for trading DLT securities, which are securities issued on the blockchain. This innovative license consolidates several functions into one, allowing for the provision of an order book for DLT securities trading, as well as atomic settlement and clearing of trades. Traditional trading venues typically require multiple licenses, such as CSD, CCP, and trading venue or stock exchange licenses.
SynHedge is your ideal partner for navigating the licensing process, leveraging its extensive expertise in the crypto sector to ensure a smooth and efficient application.
Grant Thornton has already reviewed several FINMA licence applications - including for fintech banks 1b) - which Loïc has accompanied as an experienced lawyer. We were repeatedly impressed by the very high quality of the applications and were not only convinced by the high level of expertise, but also by the pleasant and professional cooperation. Loïc is the rainmaker!
I have the pleasure of knowing Loïc and working with him for many years. He is without a doubt one of the most knowledgeable and experienced fintech specialists in Switzerland and Europe. I recommend him as a person who can lead legal projects of any complexity and any scale. If you are thinking about getting a financial license in Switzerland, Loïc is your ultimate advisor.
I highly recommend Loïc for his expertise in regulatory and embedded finance. He has consistently provided me with clear guidance, demonstrating a solution-oriented approach in every situation. He's also always reachable on Telegram. It is a pleasure to work with him.
It was my pleasure working with Loïc on several FinTech mandates. He is a friendly and professional, seeking to deliver quality services to clients, therefore continuously educating himself and glad to share recent insights. Loic is well received by clients for his legal advice and can count on a large network. It is great working with him as well as sharing time to discuss about Blockchain.
I had the pleasure of working closely with Loïc for the past year and a half, and I can confidently say that his expertise and guidance have been invaluable to our company in the dynamic Fintech landscape of Switzerland.
I highly recommend Loïc as a regulatory leader in the Fintech industry. His expertise and extensive knowledge of regulatory matters make him a valuable asset for companies in this field. Loïc also has a strong network of professionals, which can be beneficial for various needs, including auditing. I had the pleasure of working with Loïc on a FINMA application for another company, and his support was instrumental for success.
With his extensive professional experience and strong legal background, Loïc is unquestionably an expert in financial regulation within the FinTech industry. However, what truly sets Loïc apart is his entrepreneurial mindset and outstanding personal values. He never lets up when it comes to solving practical problems, and with him, there's always a solution. His in-depth knowledge of cryptocurrencies and blockchain technology enables him to provide insightful and relevant advice in this field.
Loic is one of the most outstanding blockchain lawyers I know in Switzerland. However, this isn't the most important factor, as Switzerland has many excellent blockchain lawyers. What truly sets Loic apart is his entrepreneurial spirit. He is a lawyer who goes the extra mile to solve real-world problems for his clients, rather than being the kind of lawyer who tends to create more problems for clients, as is the case with most lawyers. This is of utmost importance for start-up companies.
Loïc is one of the most brilliant crypto lawyers I have met in Switzerland. He has the technical knowledge but also the legal know-how to help clients at their best. Also a great individual from a personal perspective with great values that are also carried out in his work.
Copyright © SynHedge LLC - 2024
Copyright © SynHedge LLC - 2024