Obtain a SRO License in Switzerland

The self-regulatory organization, or SRO, in Switzerland is a non-governmental entity that is authorized by its members to enforce various regulations and standards. Our lawyers in Switzerland explain the role of such an organization and how to obtain the permit issued by it, also known as the SRO license.

Quick Facts
Definition	A self-regulatory organization (SRO) is an entity whose members authorize it to enforce various industry standards and regulations.
Applicable law	The Anti-money Laundering (AML) Regulations.
Activities that require a SRO license	Companies in the financial sector can apply for Swiss SRO licenses.
Is the SRO registration mandatory? (YES/NO)	Not for all companies.
Issuance authority	The Financial Market Supervisory Authority (FINMA).
Companies that must register with a SRO license holder	– fintech, – crypto, – payment processing, – commodities and financial brokering companies, – businesses that take money deposits from clients, – entities that issue payment cards.
Requirements to be recognized as a SRO in Switzerland	– ensure AML and FINMA compliance, – have experienced officers in its team.
Resident director requirement (YES/NO)	Yes, a resident director is required for companies registering with SROs.
Swiss physical office requirement (YES/NO)	Yes.
Minimum share capital requirement (YES/NO)	Yes, in accordance with the activities completed.
Other requirements (if any)	Companies must also appoint an AML officer.
Business plan requirement (YES/NO)	Yes, when filing for a SRO license, a business plan defining the company’s activities must be drafted.
Special considerations	FINMA can complete on-site inspections to ensure SROs meet the operating requirements.
Issuance timeframe (approx.)	3 to 6 months.
Advantages	– simplified procedure when filing for FINMA licenses, – networking possibilities, – increased confidence from clients.

What is a SRO license?

Obtaining a SRO license implies applying for membership with a Self-Regulatory Organization, which is an entity approved and overseen by FINMA.

What do Swiss SROs do?

The main role of a Swiss SRO is to ensure that companies registered with them respect the Anti-Money Laundering (AML) regulations.

What does becoming a member of a SRO mean?

It means that your company is no longer required to apply for a special license with FINMA but rather join an approved SRO that will oversee its activities. For this purpose, you need to comply with Swiss AML rules.

How do I obtain FINMA recognition as a SRO in Switzerland?

SROs must also comply with their own requirements when seeking recognition with FINMA. Specifically, they must:

• ensure they have AMLA-compliant due diligence regulations for their members;
• guarantee that they have an impeccable activity for them, as well as audit companies and other officers in the SRO who are in charge of ensuring FINMA compliance;
• the officers must also have the necessary qualifications and correct business conduct in undertaking their activities;
• make sure that the audit firms they work with are authorized by the Swiss Federal Audit Office.

Any changes in regulations or organization of a SRO in Switzerland must be notified to FINMA.

What are the requirements to obtain a SRO license?

When seeking to register with a self-regulatory organization in Switzerland, a financial company must ensure that:

• it operates under one of the legal entities approved by the Company Act in Switzerland;
• it has an AML officer and at least one local director;
• it has a physical office in Switzerland;
• it complies with the minimum share capital requirements applicable to its industry;
• it has a local bank account.

Our lawyers can also help you open a bank account in Switzerland.

Does SRO membership apply to all types of Swiss companies?

No, there are companies that need to apply for regular financial licenses in Switzerland.

What are types of businesses that must obtain SRO licenses in Switzerland?

The following:

• entities that manage assets on behalf of third parties;
• payment service providers;
• companies that deal in money transfers;
• crypto businesses that trade virtual currency;
• trustees and financial advisors;
• FOREX companies;
• CFD (Contract for Difference) brokers.

Is the requirement to obtain a Swiss SRO license available only to local companies?

Yes, it applies to Swiss companies that are registered as private or public limited liability entities. This means that foreign companies can apply for it if they operate as subsidiaries in Switzerland.

What are the documents required to obtain a SRO license in Switzerland?

The following:

• an extract from the Swiss Trade Register attesting to the company being incorporated in Switzerland;
• ID and criminal record certificates for the managers;
• a business plan detailing the services and types of clients addressed;
• the anti-money laundering compliance documentation.

How long does it take to obtain a SRO license in Switzerland?

The licensing procedure can take from 3 to 6 months due to the thorough verification procedures.

What is the validity of a SRO license in Switzerland?

This type of license does not expire. However, it can be revoked if the company no longer respects the AML rules.

What is the role of a Swiss SRO?

The roles of the SRO are:

• to create the due diligence requirements for financial companies, in accordance with AMLA;
• monitor financial companies’ activities and whether they respect the AMLA requirements;
• control whether its affiliated companies respect their obligations.

 For support in obtaining a SRO license in Switzerland, please contact our local law firm.