Page 26 - ASSET MANAGER 11 (EN)

PROF. DOMINIK ERNY
Head of Studies and Lecturer at the Institute for Financial Services Zug IFZ of the Lucerne University of Applied Sciences – Economy.
+41 41 757 67 59 dominik.erny@hslu.ch
PHILLIPE OSTER
Senior Research Assistant at the Institute for Financial Services Zug IFZ of the Lucerne University of Applied Sciences – Economy.
+41 41 757 67 32 philippe.oster@hslu.ch
26 • ASSET MANAGER GUIDE 2019 ASSET MANAGER • NO. 11/2019
OFFER FOR EXTERNAL ASSET MANAGERS
MORE COMPETITIVE THAN EVER BEFORE
External asset managers (eVV) from Switzerland and Liechtenstein can draw on a strong supply from the supply industry. With their core services and the development of inter- faces to the supply industry, banks cover an important part of the value chain. This is the opinion of researchers from Lucerne University of Applied Sciences in the study "IFZ Asset Manager Guide 2019."
Authors: Philippe Oster and Prof. Dr. Dominik Erny
What organizational changes will be necessary for eVVs with the introduction of FIDLEG and FINIG as of 1 January 2020? Is there any need for action regarding previous eVV service models? Which tran- sition periods will apply to eVVs? What can eVVs already learn from banks or from the supplier in- dustry today? These questions are answered by the Institute for Financial Services Zug (IFZ) of the Lu- cerne University of Applied Sciences with the study "IFZ Asset Manager Guide 2019"; it is based on a survey of 28 banks and 62 suppliers from Switzer- land and Liechtenstein.
Organizational requirements, service models and cost transparency are changing
With the latest regulatory package, eVVs has agreed a solution in the area of organizational requirements in the sense of risk-based supervision, which takes into account the characteristics of micro and small-sized eVVs. In ad- dition, eVVs have to comply with the newly defined capital requirements, and qualified managing directors must fulfill their experience and training requirements. In accordance with the respective level of protection, eVVs will have to divide their customers into three customer segments – "institutional customers", "professional customers" and "private customers" – and must prove their adherence to the respective information, accountability and reporting obligations.
As far as cost transparency is concerned, vis-à-vis the EU MiFID II Directive, FIDLEG does not define a prohibition on accepting advantages such as finder fees, transaction-re- lated reimbursements or portfolio maintenance fees with respect to asset management clients domiciled in Switzer- land. For example, relationships with reimbursements to eVVs are still possible with the majority of the participating banks. Nevertheless, four of the seven participating can- tonal banks deny reimbursements to eVVs.
The IFZ Asset Manager Guide 2018 can be ordered free of charge electronically via the project website or the IFZ Media Corner or in physical form (while stocks last) at ifz@hslu.ch free of charge.