Licensing requirements for foreign control
Swiss-controlled banks and securities firms need an additional licence when a controlling stake is transferred to foreign ownership as do foreign-controlled banks when significant changes in their foreign control occur.
This SFMA page gives applicants and supervised institutions a practical view of the licensing requirements for foreign control topic. It explains when a licence, approval, notification or registration may be needed, what information should be prepared, and which changes may require contact with the authority.
What does “foreign control” mean?
Cross-border structures need particular care. The application should explain the foreign institution or product, the Swiss activity, home-country supervision where relevant, cooperation arrangements and how clients or market participants in Switzerland are protected.
Conditions for an additional licence
The review focuses on whether the applicant is organised in a way that is suitable for licensing requirements for foreign control within the Licensing and authorisation requirements area. SFMA will normally look at governance, financial resources, responsible persons, risk controls, compliance arrangements, auditability, outsourcing and whether the planned activity can be carried out without creating avoidable risks for clients, investors, policyholders or market integrity.
Changes in foreign control
Material changes should be assessed before implementation. Changes in ownership, management, organisation, business activity, documents, outsourcing, risk models or the decision to stop a licensed activity can require prior approval or notification. Applicants and licence holders should keep the authorisation basis aligned with their actual operating model.
Assessment of additional licensing projects
The review focuses on whether the applicant is organised in a way that is suitable for licensing requirements for foreign control within the Licensing and authorisation requirements area. SFMA will normally look at governance, financial resources, responsible persons, risk controls, compliance arrangements, auditability, outsourcing and whether the planned activity can be carried out without creating avoidable risks for clients, investors, policyholders or market integrity.
Preparing a complete file
Applicants should keep the submission concise but complete: describe the activity, legal structure, people responsible, control framework, financial resources, relevant documents and any cross-border elements. Where uncertainty remains, the issue should be highlighted early rather than left to emerge during review.