After years of regulatory limbo, Swiss asset managers are once again welcome in the United States. The U.S. Securities and Exchange Commission has confirmed it will resume processing registration applications from investment advisers based in Switzerland.

This move has ended a prolonged suspension that has kept new entrants from tapping into U.S. markets. The change follows direct discussions between the SEC and the Swiss Financial Market Supervisory Authority (FINMA), which led to a mutual understanding on how both regulators will oversee cross-border activity.

The breakthrough brings relief to Swiss entities offering investment advice and wealth management services, who are required to register with the SEC if they serve U.S. clients.

Restart After Years of Silence

The SEC had stopped processing applications from Swiss firms for several years, citing unresolved issues around regulatory oversight, particularly concerning access to records and on-site inspections. The latest agreement addresses those concerns.

Under the new arrangement, Switzerland-based investment advisers supervised by FINMA and registered with the SEC can directly transmit required documents, including those containing personal data, to the SEC.

Additionally, SEC staff will now be able to conduct on-site inspections in Switzerland, in line with both U.S. securities laws and Swiss legal provisions such as Articles 42c and 43 of the Financial Market Supervision Act (FINMASA).

Atkins emphasized that foreign advisers' longstanding interest in joining the U.S. system reflects trust in its regulatory structure. He also credited FINMA’s collaboration in resolving legal and procedural obstacles.

FINMA and the SEC now have a shared framework that enables both regulators to fulfill their oversight duties without compromising national laws, allowing the cross-border investment advisory business to resume on stable terms.

A Win for Swiss Asset Managers

The move could open doors for a new wave of Swiss asset managers eager to expand into the U.S. or serve American clients more freely. For many, the frozen registration process had stalled growth plans and limited their ability to offer competitive cross-border services.

Now, with clear rules and open channels between the two financial regulators, Swiss advisers may find it easier to navigate the dual regulatory landscape and re-engage with the world's largest capital market.

Source: Finance Magnates