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Financial Institutions Licensing

Legal framework as a functional process

Jurisdiction

Switzerland (Federal)

Primary Rules

Art. 5, 7, 9-10, 14, 16, 20-22, 61-62 Federal Act on Financial Institutions (FinIA, SR 954.1); Art. 12, 15-17, 19, 23, 26, 31 Ordinance on Financial Institutions (FinIO, SR 954.11); Art. 1-4 Ordinance of the Swiss Financial Market Supervisory Authority on Financial Institutions (FinIO-FINMA, SR 954.111)

Target Audience

Financial instititions: Portfolio managers and trustees

Project Hash ID

#V043

Project Category Name

Eunomia

Businesses and industries have long utilized visual representations of their internal processes for optimization and control. Common methods include flowcharts for basic step-by-step logic, swimlane diagrams to clarify departmental responsibilities, and BPMN (Business Process Model and Notation) for standardized, technically precise workflows. Other critical tools include SIPOC diagrams for defining process boundaries and stakeholders, value stream mapping for identifying waste and delays in production, and data flow diagrams for mapping the movement of information.

Laws and regulations represent a novel area for applying process visualizations. Viewing legal frameworks as functional processes reframes static legal text into dynamic logic where each statutory provision acts as a trigger, gateway, or task. With this reframing, procedural law serves as a sequential workflow, defining the specific "how-to" steps for compliance, while substantive law provides the conditional logic and "if-then" criteria that govern decision-making at each junction. By mapping laws and regulations as process diagrams, regulated parties can identify dependencies, resolve ambiguities, improve understanding, and bridge the gap between high-level policy intent and the practical, day-to-day operations required for compliance.

Work Steps

Research and legal mapping

The starting point was a review of the primary legal sources, FinIA, FinIO, and FinIO-FINMA, to identify licensing thresholds and requirements applicable to portfolio managers and trustees. The commerciality threshold (CHF 50,000 annual gross income) determines whether the licensing obligation is triggered at all.

Actor identification

All actors involved in the licensing process were then identified and structured as swim lanes: the financial institution, the supervisory organisation (SO), external auditors, the ombudsman, FINMA, and the EHP platform. The EHP (Electronic Survey and Application Platform) is the sole digital channel for submitting documentation throughout the process, which explains the recurring "To EHP" annotations in the diagram rather than direct bilateral interactions with FINMA.​

Diagram drafting and iteration

The visual was assembled as a diagram, arranging swim lanes, decision diamonds, and document symbols into a BPMN-like layout. Several iterations were required to correctly reflect the conditional logic.

Diagram finalization and publishing