FINMA publishes its enforcement case law — what this means for you

Authorisation and supervision of portfolio managers and trustees

1. 1. Withdrawal of authorisation and liquidation of a portfolio manager (20.06.2025) — A portfolio manager (X SA) had obtained its authorisation on the condition that it meets the own funds and minimum capital requirements within a set timeframe. Not only did the firm fail to meet these requirements, but it also falsely asserted to FINMA that it had done so, and continued to promise a swift remediation that never materialised. FINMA withdrew the authorisation and ordered the liquidation. An appeal is pending before the Federal Administrative Court.
   2. Dismissal of an authorisation application (07.07.2025) — Having received an authorisation application filed in February 2023, FINMA issued several supplementary requests relating, in particular, to the number and quality of investors in the managed fund. Given the applicant’s persistent silence despite repeated follow-ups, FINMA declared the application inadmissible on grounds of failure to cooperate (Art. 13 para. 2 APA).
   3. Rejection of a trustee authorisation application (27.10.2025) — The review of the application revealed that a director (A) had been convicted of professional fraud and forgery. The board of directors was aware of this conviction prior to appointing A and had concealed it from FINMA. This lack of transparency led to the finding that the trustee and its board of directors did not offer the guarantee of irreproachable business conduct, justifying the rejection of the application.
   4. Objections against amendments to a fund contract (19.12.2025) — Three investors in an investment fund objected to amendments to the fund contract submitted for FINMA’s approval. Following its analysis, FINMA concluded that the proposed changes did not constitute a material broadening of the investment universe, but rather a concretisation of an already broadly formulated policy. The objections were rejected and the amendments approved.

Market supervision

1. 1. Front-running and prohibition to practise (12.12.2025) — A trader employed by a bank repeatedly exploited inside information obtained in the course of his duties by placing private orders ahead of significant transactions executed on behalf of a fund managed by his employer. He had also failed to declare his private portfolio. FINMA classified these actions as serious and repeated violations of supervisory law and imposed a three-year prohibition on practising.
   2. Unauthorised securities dealer activity (07.07.2025) — Between December 2020 and March 2024, two individuals (A and B), together with a company now in liquidation, sold more than 19 million registered shares to investors, collecting at least CHF 5.3 million. FINMA found that they had conducted unauthorised securities dealer activity, issued published desistance orders for five years (A) and three years (B), and ordered the confiscation of approximately CHF 4.2 million in unlawfully obtained gains.