The US’s SEC and the Swiss Financial Market Supervisory Authority (FINMA) have agreed to share information about Switzerland-based investment advisers. In a press release last week, SEC said the deal will require such advisoers to provide their books and records, including personal data, directly to SEC staff.

Swiss authorities have also given permission to SEC staff “to conduct on-site visits of these entities in Switzerland, consistent with the US securities laws and Swiss law.” In return, the SEC has agreed to “immediately resume processing new and pending registration applications of investment advisers with their principal office and place of business in Switzerland.”

SEC Chairman Paul S Atkins said: “These applications have languished for too many years, and it is well past time that we resume this process. Longstanding interest from foreign investment advisers in registration demonstrates the value of the US regulatory framework, and we look forward to expanding access to US capital markets.”

People familiar with the matter have told the Financial Times US authorities were carrying outexaminations of at least eight Swiss companies, including smaller managers as well as major firms such as Vontobel.

End of stalemate

The agreement ends many years of stalemate and discussions during which US authorities demanded access to information about individuals and firms who kept assets in Switzerland.

Other than asking for information about American clients, US authorities were also demanding to be allowed to carry out on-site examinations in Switzerland. The requests had previously been rejected, and the SEC stopped processing applications of Swiss-based investment advisers who wanted to operate in the US and find new clients.

There have been similar agreements between the two countries in the past too. In 2013, Switzerland agreed to join the Foreign Account Tax Compliance Act (FATCA).

As reported at the time, the agreement required Switzerland to direct all reporting Swiss financial institutions to register with the IRS [Internal Revenue Service] by Jan 1, 2014.”

It also required pre-existing as well as new US clients who had accounts in Switzerland to share certain information with Swiss reporting institutions.

Agreements such as FATCA have enabled US authorities to work with countries including France, Germany, Italy, Spain, and the United Kingdom to stop firms and individuals from avoiding taxes in the US.

According to the FT, many wealthy Americans have opted to move and keep their assets in Switzerland “amid uncertainty caused by Donald Trump’s administration.”