Compliance Requirements for Banks in Switzerland: A Guide to Obtaining Authorisation from FINMA

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Banks operating in Switzerland must meet a range of licensing requirements to obtain authorisation from the Swiss Financial Market Supervisory Authority (FINMA). This guide outlines the key requirements and procedures for obtaining a licence.

Overview of Licensing Requirements

Under Article 1a of the Banking Act, companies that accept deposits from the public or provide financing on their own account are considered banks and require a licence to operate. To be granted a licence, applicants must demonstrate that they meet all licensing requirements, including:

• Fully paid-up minimum capital of at least CHF 10 million
• A business plan showing compliance with:
  • Capital adequacy rules
  • Risk diversification rules
  • Liquidity rules
• Guarantee of irreproachable business activity by qualified participants and members of ultimate strategic and executive management

Additional Requirements

Other key requirements for bank licensing include:

• Precise factual and geographical description of the business in the articles of association, partnership agreement, and business rules
• Management of the bank from Switzerland
• Separation of:
  • Ultimate strategic and executive management
  • Internal functions
  • Effective risk management
  • An effective internal control system with an independent internal audit function

Application Process

Applicants must also:

• Appoint a recognised audit firm for the licensing process and ongoing supervision
• Demonstrate reciprocal rights on the part of countries where qualified participants are domiciled if the bank is under foreign control
• If the bank is part of a financial group, ensure adequate consolidated supervision by a recognised supervisory authority

Duration of the Licensing Process

The duration of the bank licensing process depends on:

• The quality and complexity of the application
• The time it takes to receive a response from competent foreign supervisory authorities

Obtaining Guidance and Support

The Authorisation section of the Banks division at FINMA can provide further information and guidance on the licensing process, as well as application templates and additional documents available on the FINMA survey and application platform (EHP).

To access the EHP, applicants must:

• Self-register via the FINMA homepage
• Undergo two-factor authentication after verification by FINMA

Additional Resources

A fully expanded application template is also available below as a guide, but it cannot be used as an actual application.

Note: The information provided in this guide is subject to change and applicants are advised to check with FINMA for the most up-to-date requirements and procedures.