About SROs

In the Swiss financial regulatory framework, a Self-Regulatory Organisation (SRO) is a private-sector body officially recognized and supervised by the Swiss Financial Market Supervisory Authority (FINMA). FINMA delegates the authority to issue and enforce specific regulatory rules, particularly in the areas of anti-money laundering (AML) and conduct standards, to these approved SROs.

Their primary role is to establish detailed rules for their member institutions that go beyond the high-level standards set in national laws. These SRO-specific rules must be approved by FINMA to ensure they meet statutory requirements. Key financial intermediaries, such as asset managers, trustees, and some securities firms, are often required by law to join a recognized SRO.

The approval process for an SRO is stringent. FINMA grants recognition only if the organization demonstrates it has the necessary expertise, resources, and independence to effectively supervise its members and enforce compliance. This model creates a two-tier supervision system: FINMA oversees the SROs, and the SROs, in turn, directly supervise their member firms. This structure allows for industry-tailored regulation while maintaining robust overall oversight by the national authority.