“Blackden feels this is the way the whole of Europe is going. It also ensures our interests are fully aligned with those of our clients, guarantees the impartiality of advice and fosters long-term relationships.”
Aside from wider regulatory changes, the overall regulatory body for Switzerland, the Swiss Financial Market Supervisory Authority (FINMA) is finalising changes first announced in 2010 to tighten up the way in which cross-border finance is regulated in the country following the 2008 financial crisis.
A proposal that has so far been mooted is that advisory firms will only be able to take fees rather than commission in any form to attain an independent label, in a similar manner to 2008’s retail distribution review in the UK.
“The rules are yet to be fully defined but you can see the regulator is looking over the fence, if you like, at the EU regulators. I can see the full disclosure of fees, and even qualifications for advisers, becoming mandatory,” says Marriott. “FINMA is looking to create a distinction between the retail market and the ultra-high net-worth market.”
Marriott, who was also one of the founding members of the Federation of European Independent Financial Advisers in 2009, and has sat as its chairman since September 2012, says regulation will be an issue for advisory firms across the whole of Europe going forward, rather than just in Switzerland.
He says: “There is going to be pressure on fees, commission or both throughout Europe for the foreseeable future, as a consequence of the impact of 2008’s financial crisis.
It has become increasingly important to have an understanding of how the wider financial industry affects your business.”
