The Swiss Financial Market Supervisory Authority has concluded enforcement proceedings against Swiss Fund Management AG in liquidation and BZ Berater Zentrum AG, as well as one individual, for serious breaches of conduct rules under the Financial Services Act. The case centered on conflicts of interest and unsuitable investment practices involving illiquid bonds linked to overseas real estate development projects. To address the breaches, FINMA revoked Swiss Fund Management’s licence as a manager of collective assets, rejected BZ’s application for authorisation as an independent portfolio manager, imposed a multi-year industry ban on one responsible individual and ordered the confiscation of more than CHF 3 million in illegal commission income. FINMA found that BZ, which held around 2,000 asset management mandates, had invested about CHF 200 million of client money, directly or indirectly through funds, in illiquid bonds of doubtful value issued by affiliated entities. Those issuers were non-operational and transferred the proceeds on an unsecured basis to real estate investment companies controlled by the individuals involved, despite marketing claims to investors. Part of the proceeds also financed shareholdings and the operating activities of other companies, including Swiss Fund Management and BZ. FINMA concluded that investors were not properly informed about these conflicts, and that client assets were concentrated in the firms’ own products in ways that were inconsistent with investors’ risk profiles and pension objectives, breaching conflict management, appropriateness and suitability obligations under FinSA. The ruling was not appealed and has entered into legal effect. BZ was required to stop its asset management activities within 30 days of notification of the decision, while Grant Thornton AG was appointed liquidator for Swiss Fund Management. FINMA kept earlier precautionary measures in place until the ruling became final, but did not restrict repayments or interest payments on existing bond investments. Around 150 individuals have also started mediation proceedings against BZ, and OFS Ombud Finance Switzerland will now begin mediation.
Swiss Financial Market Supervisory Authority (FINMA)2026-06-29
Swiss Financial Market Supervisory Authority withdraws Swiss Fund Management licence rejects BZ authorisation and confiscates over CHF 3 million
The Swiss Financial Market Supervisory Authority concluded enforcement proceedings against Swiss Fund Management AG in liquidation and BZ Berater Zentrum AG for serious Financial Services Act conduct breaches tied to illiquid affiliated bonds and unmanaged conflicts of interest. It revoked Swiss Fund Management’s licence, rejected BZ’s authorisation application and required it to cease asset management within 30 days, while also imposing a multi-year industry ban on one individual and confiscating more than CHF 3 million in commissions. FINMA said about CHF 200 million of investor money had been placed in bonds of uncertain value through around 2,000 mandates.