Supervision of institutions with a FinTech licence

Institutions with a FinTech licence are supervised by SFMA according to their activity, risk profile and the principles that apply to their licence.

SFMA supervises institutions with a FinTech licence, meaning persons under Article 1b of the Banking Act, on a principles-based and risk-oriented basis. Supervision focuses on whether the institution continues to satisfy the conditions under which the licence was granted.

Because deposits held by these institutions are not covered by deposit protection under the Banking Act, transparency, client information, governance, risk controls and ongoing compliance with the licensing basis are especially important.

Supervisory focus

The legal basis for supervision is found in the Banking Act and Banking Ordinance, with further detail in relevant SFMA circulars. Audit work and supervisory reporting help SFMA assess whether the business remains within the approved perimeter and whether risks are being managed appropriately.

Disclosure requirements

Changes to facts on which the licence was granted must be reported to SFMA. If a change is materially significant, the institution must obtain prior approval before continuing the affected activity.