The Swiss Financial Market Supervisory Authority (FINMA) has concluded enforcement proceedings against Wendelspiess Partners AG in liquidation and two individuals, finding serious breaches of conduct duties in the provision of financial services. FINMA imposed long-term industry bans on two responsible individuals and will withdraw the firm's licence as a portfolio manager. The case centred on the firm's placement of client assets into a foreign fund it had established and managed in-house, which was suffering significant liquidity problems. The investigation found that the fund was heavily concentrated in a Zug-based investment company and affiliated entities, and also extended loans to them. Wendelspiess Partners AG and several directors held shares in the fund, creating conflicts of interest that were not, or were only inadequately, disclosed to clients. FINMA also found that more than 400 clients were not properly informed of the risks, that the firm failed to carry out required suitability assessments, and that almost all client funds were invested in the fund without client consent. The fund had assets under management of more than CHF 83 million at the end of 2024 and now faces the prospect of a total loss. FINMA further found that the firm withheld relevant information, including during its licensing procedure, in breach of its duty to provide information to the supervisor. The ruling is not yet final and may be appealed to the Federal Administrative Court.

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