Addressing representatives of the financial centre in Ticino, FINMA discussed its perspective on the Swiss financial services sector, with a primary focus on asset and wealth management. At the close of last year, banks and securities firms in Switzerland managed client assets totalling approximately 2,500 billion francs under portfolio management and investment advisory mandates. This volume represents close to 43 per cent of actively serviced investment assets within the country. The international character of this business remains pronounced, as almost every second actively serviced invested franc originates from abroad, cementing Switzerland's position as a prominent global centre for cross-border client asset servicing. Swiss banks maintain an important role in cross-border wealth management, advising private clients and managing assets of just under 370 billion francs for them.
Asset and wealth management constitutes a core pillar of the Swiss financial sector, a fact particularly evident in Ticino. Lugano functions as one of Switzerland's principal financial centres, where asset and wealth management boasts a longstanding tradition alongside a clear international orientation. At the end of last year, banks and securities firms located in Ticino serviced client assets of around 33 billion francs under investment advisory and portfolio management mandates, with 70 per cent originating from abroad. Overall, financial institutions in Ticino service approximately 95 billion francs through investment advisory or portfolio management services, where roughly 75 per cent of these assets stem from international clients.
FINMA applies a holistic approach to supervising the sector, examining the specific type of activity conducted and its inherent risks rather than relying solely on the licensing category. To support this, the authority has collected cross-sector data on asset and wealth management for two years. Figures recorded at the end of 2025 show that individual portfolio management mandates and fund assets under management together total approximately 4,222 billion francs, split evenly between fund assets and individual portfolio management mandates. Categorised by licence, managers of collective assets account for the largest share at 38 per cent, followed closely by banks and securities firms at 32 per cent, representing roughly 1,370 billion francs. Within banks and securities firms, individual mandates form the primary business, with about two thirds of these assets managed through individual portfolio management mandates.
Monitoring this sector remains a priority for the supervisory authority, driven by its significance for clients and the Swiss financial services sector as well as the associated risks, such as potential client asset losses and reputational damage. The operating environment faces mounting challenges from geopolitical tensions, trade conflicts, and political uncertainty affecting financial markets. Additionally, interest rate and inflation dynamics tied to rising foreign sovereign debt present ongoing risk factors, while technological advancements continue to alter markets, products, and investment decision-making processes.
Switzerland's competitiveness benefits from foundational strengths including political, economic, and currency stability, alongside principle-based regulation, risk-based and effective market supervision, and proportional implementation across supervised entities. The small banks regime serves as a prime example of this proportional approach, drawing considerable interest from international regulators. Sustaining the financial centre's long-term reputation also requires distributed assets to meet rigorous standards concerning national and international sanctions compliance, anti-money laundering measures, and investor protection.
Effective investor protection remains crucial as changing environments introduce rapid risk shifts and unexpected materialisation, compounded by increasing complexity in specific financial instruments and product structures. Professional portfolio management carries heightened responsibility under these conditions, ensuring client assets align with individual financial situations, investment objectives, and risk appetites. In June, FINMA published guidance on risks associated with product use in individual portfolio management, triggered by specific cases observed directly or reported by supervisory organisations overseeing portfolio managers under Article 17 of the Financial Institutions Act.
The volume of such cases increased notably in recent years, particularly among portfolio managers. Supervisory organisations and other sources escalated seven such supervisory cases to FINMA in 2023, 32 cases in 2024, and 60 cases last year. These figures apply exclusively to portfolio managers under Article 17 of the Financial Institutions Act, representing a small segment of the market, and do not reflect the broader asset and wealth management industry. Nonetheless, analysis of these instances reveals recurring risk patterns applicable across all institutions offering individual portfolio management services, including banks.
