Swiss asset managers, particularly smaller firms, are grappling with disproportionate regulatory costs under the country’s post-Too Big to Fail (TBTF) framework, according to Vivien Jain, CEO of the Swiss Association of Asset Managers (VSV).
Direct external supervision costs for small wealth managers often exceed CHF 7,500 per employee, the VSV estimates, with additional internal expenses for compliance, risk management and internal controls. For low-risk firms with two to three employees, annual regulatory costs can reach CHF 45,000 to CHF 55,000. The burden raises questions about whether the oversight scale matches the risk profile of such businesses.
The VSV highlights inconsistencies in the supervisory system, including discrepancies among the four self-regulatory organizations (SROs) that asset managers must join. Differences in audit accreditation, examination processes and risk-based inspection cycles create redundant workloads, despite the same statutory oversight outcome. Small firms also lack clarity on risk classification criteria, leaving them unable to determine how to qualify for reduced inspection frequencies.
Jain emphasizes that the VSV does not advocate for weakened supervision but calls for a more transparent, risk-based and proportionate approach. The association argues that existing inefficiencies within the current system should be addressed before expanding Finma’s powers. The Swiss parliament’s Economic Affairs Committee has already requested an efficiency review of oversight for non-bank financial actors, aligning with the VSV’s central demand.
For independent asset managers—entrepreneurs who bear their own risk and reputation—the current regulatory demands divert significant resources from core operations. The debate over TBTF oversight should prioritize proportionality, the VSV contends, to maintain the competitiveness of Switzerland’s financial sector. Without clearer rules and predictable requirements, the system risks imposing excessive costs on low-risk businesses that contribute minimally to systemic threats.
