SWITZERLAND Law and Practice Contributed by: Lukas Morscher and Lukas Staub, Lenz & Staehelin
3. Robo-Advisers 3.1 Requirement for Different Business Models In Switzerland, financial advisers that provide financial advice or investment management online, so-called robo-advisers, are growing in popularity. In particular, those between the ages of 24 and 35 are expected to make up the customer base of online investment solutions, since they often adopt new technologies quickly and prefer self-service approaches. There are several companies that pursue a robo-adviser business model based on mathematical rules or algorithms and allocate, manage and optimise clients’ assets. With regard to automated investment advice, there are no specific applicable rules or regula - tions. Swiss law is generally technology-neutral and principle-based. FINMA actively contributes to a fintech-friendly legal environment. FINMA regards innovation as key to Switzerland’s com - petitiveness as a financial centre, but adopts an essentially neutral approach to certain business models and technologies. FINMA has therefore been enhancing the regulatory framework to facilitate client onboarding via digital channels and has reviewed whether specific provisions in its ordinances and circulars disadvantaged some technologies, concluding that very few such obstacles existed. Therefore, FINMA has adopted its guidelines for asset management and has removed the requirement that asset management agreements have to be concluded in writing. Also, FINMA has eased the rules of the onboarding process for new businesses via digital channels.
earliest, would address the outstanding deficien - cies identified by the FATF. 2.16 Reverse Solicitation FinSA generally applies to the provision of finan - cial services in Switzerland or to Swiss residents (see 2.2 Regulatory Regime ). However, it con - tains a reverse solicitation exemption, whereby financial services provided to clients in Switzer - land by foreign financial service providers are not covered/governed by the FinSA if: • the entire client relationship or individual/spe - cific financial services have been requested by clients on their express initiative; • the relevant specific financial service has not been advertised or solicited by any other means to the relevant client prior to such cli - ent’s enquiry; and • the service in question does not go beyond the scope of the original request. Therefore, the reverse solicitation results in a narrow exemption and customarily is not suf - ficient to serve as a business model, as it does not allow for systematic market services in the Swiss market. Note that reverse solicitation is not relevant for most other Swiss financial market acts (eg, AMLA) as these only apply in case of the service being provided in or from Switzerland (ie, these acts do not apply to cross-border service provi - sion; see also 5.2 Regulation of Cross-Border Payments and Remittances ).
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