Final stretch: Are you ready for FINMA Circular 2025/2 – Conduct Rules under FinSA and FinSO?
FINMA Circular 2025/2 is entering its final phase. Financial institutions have until 30 June 2025 to comply with the transitional provisions relating to marginal comments (Cm) 8, 9 to 12, 24 to 25, and 26. These requirements demand a revision of practices regarding client information, client profiling, and conflict-of-interest management.
Cm 8 to 12 strengthen the obligations to assess the appropriateness and suitability of financial services. It is no longer sufficient to have a general understanding of the client; institutions must now collect detailed data on the client’s knowledge and experience for each category of financial instrument offered, while also considering the client’s financial situation and investment objectives. This granular approach directly impacts the quality of advice—whether occasional or comprehensive—and overall compliance.
Cm 24 and 25 clarify the duty to identify and manage conflicts of interest, particularly when proprietary financial instruments are being recommended. Transparency becomes paramount, both in product selection and in communication with clients.
Lastly, Cm 26 mandates full and prominent disclosure of any third-party compensation, including retrocessions, prior to the provision of services or the signing of a contract.
With fewer than ten weeks remaining, the countdown has begun.
Written by Me Henri Corboz