Swiss regulator FINMA on Wednesday published a supervisory communication on risks linked to the use of products in individual asset management.
The communication addresses concerns around third-party products embedded in discretionary mandates, according to FINMA. The regulator said it had set out guidance for asset managers to mitigate those risks.
The notice signals that FINMA expects supervised firms to maintain full responsibility for governance, due diligence, and ongoing monitoring when external products are used inside client portfolios.
The supervisory communication format carries weight, as it sits below formal regulation but above informal guidance, and is typically used when FINMA wants to correct behaviour it has observed during supervision.
The full text of the communication was not immediately available at the time of publication.
The notice follows a pattern of FINMA using supervisory communications to sharpen expectations for asset managers.
In January, the regulator published a separate communication on custody of crypto-based assets, where it said risks “were not always adequately taken into account by the supervised institutions in the past.” That earlier notice also touched on obligations within individual portfolio management.
