Swiss trustee regulation and FINMA licensing
FINMA's trustee page describes when commercial trustee activity requires a Swiss licence and the requirements the authority publishes. It also explains the application channel and FINMA's role in licensing.
Who FINMA regulates
FINMA licenses trustees who act on a commercial basis in Switzerland. A trustee is an entity that manages or holds a separate fund under a trust instrument for beneficiaries or a specified purpose. Trustee activity does not fall within the scope of the Financial Services Act, although the Act's requirements apply if trustees offer financial services under it.[1]
Trustees manage separate funds, preserve their value, and apply them to their stated purposes. Trustees may also perform other duties, such as investment advice or portfolio analysis. A trustee that also works as a portfolio manager needs an additional FINMA licence for that activity.[1]
When activity is commercial
Only trustees carrying out their activity commercially require a licence. Three thresholds can make trustee activity commercial. Meeting any one of them is enough.[1]
- Gross earnings exceed CHF 50,000 in a calendar year.[1]
- The trustee establishes more than 20 contractual relationships in a calendar year, excluding relationships limited to a one-time activity, or maintains at least 20 such relationships during that period.[1]
- The trustee manages trust funds exceeding CHF 5 million at any time.[1]
Certain activities connected with legal exemptions do not count when assessing commercial nature. One example is the exclusive management of assets belonging to family-related persons.
Licence requirements and timing
A trustee licence carries financial, personnel-related, and organisational requirements.
- The trustee must have a legal form of sole proprietorship, commercial enterprise, or cooperative, and be registered in the commercial register.[1]
- Its organisation must include adequate risk management and internal controls.[1]
- It must have sufficient equity capital or securities.[1]
- Its documents must describe operations and the geographic area of business.[1]
- It must show affiliation to a supervisory organisation, which confirms supervision by that organisation.[1]
A FINMA licence is required before commercial activity begins. A transitional provision covers trustees professionally active when the Financial Institutions Act took effect. That provision allowed continued operation pending authorisation if the application was submitted by the specified deadline and SRO affiliation continued.[1]
Applications and public information
Trustees submit licensing applications through FINMA's survey and application platform, called EHP. Further details are available on FINMA's licensing process page.[1]
Questions and answers
Which Swiss authority licenses commercial trustees?
FINMA licenses trustees acting on a commercial basis.
What activity does FINMA define as trustee work?
Trustees are entities managing or holding a separate fund under a trust instrument. The fund is held for beneficiaries or a specified purpose.[1]
What thresholds indicate commercial trustee activity?
The tests are gross earnings above CHF 50,000 in a calendar year, specified counts of ongoing contractual relationships, or trust funds above CHF 5 million.
How does a trustee submit a licence application?
Applications are submitted through FINMA's EHP survey and application platform.
Related resources
Related glossary terms
- Control test: The control test is part of the IRS rules for classifying trusts as domestic or foreign. It describes whose authority over substantial decisions counts.
- Trust register: A trust register is an official record of trusts, their parties or trustees, such as the UK Trust Registration Service and EU beneficial-ownership registers.
Related articles and guides
- Cayman Islands trust regulation and licensing: CIMA regulates trust business in the Cayman Islands. Its licence categories, fiduciary list and application process matter to U.S. citizens using a trustee.
- Singapore trust business regulation and licensing: MAS regulates Singapore trust business under the Trust Companies Act, with licence categories, exempt providers and applications published by the regulator.
- BVI trust business regulation and licensing: The BVI Financial Services Commission administers trust business under the Banks and Trust Companies Act and oversees providers operating in and from the BVI.
Tools and official documents
- FinCEN Report 114 (FBAR): foreign account reporting: FinCEN Report 114 (FBAR) for U.S. citizens: account definitions, financial interests, signature authority, trust provisions and the filing requirements it sets.
Related pages
- Switzerland: overview: Start page for this jurisdiction.
- Trust legislation
- Taxation of trusts
- Reporting and information exchange
- U.S. treaty and agreements
Sources and data notes
- Swiss Financial Market Supervisory Authority (FINMA), Trustees. https://www.finma.ch/en/authorisation/portfolio-managers-and-trustees/trustees/. Retrieved .
Dates in this block record when each source was read for this page.