Compliance Outsourcing

Compliance outsourcing means that a financial institution in Switzerland transfers its compliance and risk management function, in whole or in part, to a specialised, independent partner. That partner takes over the relevant tasks or supports the institution in meeting regulatory requirements and managing its risks effectively. Compliance and risk management together form the Second Line of Defence (2LOD).

Why external? Because it is more efficient and gives you an independent compliance and risk management function: from day one, you benefit from established processes and experienced specialists. At velaw, lawyers and compliance and risk experts with many years of hands-on experience at banks and asset managers combine their expertise with our in-house RegTech platform vela. This gives you proven quality without the effort of building your own department.

Yes, and it is worth it. Banks, asset managers and other financial intermediaries are allowed to outsource their compliance and risk management function to a qualified partner; for financial institutions, this is expressly provided for in Art. 14 FinIA. You gain specialized expertise, which enables regulatory requirements to be implemented efficiently and reliably.

As a rule, compliance and risk management must be exercised independently of profit-oriented activities. This applies to banks, securities firms, fund management companies and managers of collective assets (fund managers) as well as, in principle, to asset managers and trustees. For the latter, the Financial Institutions Ordinance provides for a strictly limited exemption: independence is not required if there are five or fewer full-time equivalents or an annual gross revenue of less than CHF 2 million, provided there is no business model with increased risks; the thresholds must have been reached in two of the past three financial years or be provided for in the business plan (Art. 26 para. 2 and 3 FinIO). But even where such an exemption applies, an independent function remains a recognized quality feature that the Board of Directors, audit firm and supervisory authority value. With velaw, this independence is guaranteed from the outset.

Asset managers in Switzerland can cover their compliance requirements with their own qualified employees or engage a specialised external partner. External partners provide cover or take on the entire compliance and risk management function; they also support individual topics such as policies, training or risk analyses. What matters is a partner with expertise, practical experience and the necessary independence. velaw supports asset managers, trustees and other financial institutions in Switzerland with a team of lawyers and compliance and risk experts, as well as our in-house RegTech platform vela.

As much or as little as you want. velaw is your partner for the entire Second Line of Defence—from digital support to full compliance outsourcing. You benefit from a team that knows the business of banks and asset managers from first-hand experience.

Three models, one standard

• RegTech platform vela: You run compliance and risk management yourself, managed via our digital ICS. Our experts are available to you at any time.
• Cover: Your function remains in-house. velaw steps in during absences or bottlenecks and provides expert support.
• Full outsourcing: velaw takes over the compliance and risk management function in full. You focus on your clients; we focus on regulation.

No two institutions are the same. We tailor our services to your needs and support you with expertise and experience exactly where you need us—today and as your requirements change. The RegTech platform vela is usually used to ensure consistent processes, full transparency and end-to-end documentation.

Our services

Depending on the model and your needs, we monitor regulatory developments, carry out risk analyses and controls, and further develop your policies and control processes. We also advise and train employees and governing bodies, and support you in audits and in dealings with FINMA, the supervisory organisation and the audit firm. With full outsourcing, your Board of Directors also receives all analyses and reports for effective steering—from the AML risk analysis and the institution-wide risk assessment through to ICS reporting.

That depends on what you need—and that is exactly the advantage. The key factors are primarily your business model and risk profile, such as the number of your clients, cross-border activities or complex products, as well as the model you choose and any additional services.

From the RegTech platform vela to full outsourcing, we tailor our offering to your needs. This gives you exactly the expertise your institution requires; with full outsourcing, you also avoid the recruitment, training and absence risks of an internal role.

In the free initial consultation, we clarify your needs and provide you with a transparent offer.

Yes. For ongoing mandates, we generally agree a fixed flat fee based on the agreed scope of services. This keeps your costs predictable, and you know from the outset what to expect.

Almost always. Because with velaw you don’t get one person—you get an entire team of specialists: lawyers and compliance and risk experts who together cover the full spectrum of compliance and risk management. Building this knowledge internally is neither realistic nor economical for most institutions.

You get the full breadth of our expertise in a mandate tailored to your needs. And if you want to keep compliance in-house, you still benefit from the RegTech platform vela or our cover model: more efficient processes and expertise whenever it is needed.

Responsibility remains with the institution—not the work. Even when outsourcing, financial institutions remain responsible for fulfilling supervisory obligations (Art. 17 para. 1 FINIV). Decisions reserved to the Board of Directors and executive management cannot be delegated (Art. 16 para. 1 FINIV); comparable principles apply to banks. This makes it all the more important whom you entrust with implementation.

We have held this responsibility ourselves—leading Legal, Compliance and Risk at financial institutions. That’s why we know what your Board of Directors needs for its oversight: clear reports, well-founded assessments and traceable documentation. This enables you to deal confidently with FINMA, the supervisory organisation and the audit firm at all times.

For all financial institutions and financial intermediaries in Switzerland that want a professional compliance and risk management solution without having to take on the effort of building their own department. Whether a bank, securities firm, fund management company, manager of collective assets, asset manager, trustee or an AML financial intermediary affiliated with an SRO: the requirements differ, but the benefit remains the same.

Newly licensed or established for years: velaw supports you at every stage. From licensing and setting up your compliance organisation through to ongoing operations, you have a partner who knows the regulatory environment, advises you proactively, supports you operationally when needed, and stands by you when it matters.

Easier than you think. In the free initial consultation, we clarify your needs. We then analyse your existing organisation, policies and controls and propose a solution tailored to your institution. We set out the agreed tasks, powers and control rights in a written agreement, as required by supervisory law (Art. 17 para. 2 FINIV).

We then take over the agreed tasks step by step while your day-to-day business continues. And throughout this phase, you have an experienced expert at your side from the very beginning—personally supporting you.

Let’s find out together what your institution needs.