Guernsey Financial Services Commission signs MoU with FINMA

The Commission has recently signed a Memorandum of Understanding (“MoU”) with the Swiss Financial Market Supervisory Authority (“FINMA”) in respect of the distribution of investment funds to retail investors. The MoU facilitates close co-operation between the two authorities and key elements include the exchange of information, cross border on-site visits and assistance in the enforcement of each jurisdiction's laws.

One of the principal reasons for the MoU is that amendments have been made to the Swiss Collective Investment Schemes Act relating to the distribution of foreign funds to retail investors in or from Switzerland. These are now subject to the existence of a cooperation arrangement (MoU) between FINMA and the financial services supervisory authority responsible for the relevant foreign funds.

The MoU with FINMA provides an effective framework between the two authorities for the exchange of information and other supervisory cooperation related to the distribution of investment funds to retail investors. It will also contribute towards reinforcing investor protection across borders as well as rendering the cross-border distribution of investment funds to retail investors more efficient.

Carl Rosumek, Director of Investment Supervision and Policy at the Guernsey Financial Services Commission, said: “I am delighted to confirm that the Commission has signed a co-operation agreement with the Swiss Financial Market Supervisory Authority. The completion of this agreement is a positive endorsement of the Commission and the important work it undertakes on behalf of the Bailiwick. The Commission has a very constructive relationship with FINMA and looks forward to working with them in the cross-border supervision of the funds industry”.