As announced on our previous blogpost in relation to the FinSA regulation, a decision of the Federal Council was expected in relation to the FinSA transition period.
Considering the recent postponement of the EU transition from UCITS KIIDs to PRIIP KIDs, the Federal Council has decided to also extend the FinSA transition period of the same length – 12 month. The decision has been taken “to ensure equal treatment, but also to avoid a disproportionate burden on issuers of financial instruments and to avoid confusing investors.”
This means that the obligation to prepare a FinSA KID (or an equivalent PRIIP KID) for all relevant financial instruments will only be mandatory starting from January 1st, 2023.
During the transition period, UCITS Key Investor Information Documents (KIIDs), as well as Swiss simplified prospectuses (in accordance collective investment schemes legislation) may be used as adequate replacement if a KID is not produced yet for a financial product that is targeting a Swiss private clients.
The regulatory documents such as PRIIP KIDs, currently in use and supplied by cleversoft docRepository, remain in place and can be handed over to private investors until the end of 2022. Those are compliant with the FinSA KID requirements and can be used by Manufacturers targeting private clients in Switzerland.
For all distributor side clients, cleversoft has designed an easy plug-and-play FinSA module within docRepository, to support you with the FinSA Regulation full entry into force.
Additionally, for all financial instrument manufacturing clients, we are in process of offering producing FinSA specific KID, next to the standard EU PRIIP KID, which is currently considered equivalent to FinSA KID, and thus fulfill Swiss requirements.