How are structured products regulated?
Art. 5 of Switzerland’s Federal Collective Capital Investments Law (KAG) regulates the public sale of structured products within and from Switzerland: Structured products may be guaranteed and sold to the public by supervised financial companies exclusively. In addition, a free, simplified prospectus describing a product’s main features, profit and loss outlook and major risks, is to be made available. By way of self-regulation, the Swiss Bankers Association, together with the SSPA, has issued guidelines, approved by the Swiss Financial Market Supervisory Authority (FINMA), regarding the minimum of information to be provided to structured product investors.
To coordinate Swiss and European regulations, in its position paper on the regulation and sale of financial products, FINMA states the need for a new financial services law, to be drafted in the coming years. The SSPA expects to be involved in the drafting process, in dialogue with legislators.