Blacktower

Nightmare for Swiss Based Financial Advisers and their EU clients?

The Malta Association of Retirement Scheme Practioners (MARSP) have been attempting to persuade the Malta Financial Services Authority (MFSA) that Switzerland has the relevant regulatory authorisation, supervision and enforcement in line with the EU in order for Swiss Based Advisors to continue to be able to service their EU clients post changes to Malta Pension Legislation – which has seen many clients having to seek an alternative, appropriately licenced, EU based Financial Adviser.

It is the opinion of the MFSA that Switzerland does not currently offer the relevant framework although recognises that the Swiss authorities are progressing to implement this.

As a result of this decision Pension Trustees in Malta are being given until the 1st of October 2019 to disengage and transition Members with an appointed Swiss Investment Adviser/Asset Manager to an Investment Adviser or DFM, who meet the licensing requirements under the Rules. This applies for all existing Members residing in or outside Switzerland.

Next steps?

Swiss based IFA firms may wish to seek an EU IFA Network that can offer them MiFID permissions to be able to continue to service their client books.

Alternatively, clients being looked after by Swiss Based IFA firms may be required to seek an EU Based IFA Firm with the appropriate licences to able to provide them with ongoing servicing.

Conclusion

Not ideal as it is the client that is placed at risk here… but this is not without solution.

Blacktower Financial Management (International) Limited is MIFID licenced and passported throughout the EU. Not only that it holds Terms of Business with most of the Malta based Retirement Practioners.

We also run an IFA Network – Nexus Global – giving you the ability to access the EU Market for your EU based clients.

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