Insofar as the withdrawal of recognition of an SRO is being considered, this is performed by the FINMA, following prior warning. Pursuant to the provisions of Art. 37 FINMAG, recognition must be withdrawn if:
- the SRO no longer fulfils the preconditions for the activity (cf. Art. 24 GwG), or
- a serious breach of statutory supervisory provisions has been committed.
Art. 37 FINMAG – Withdrawal of licence, recognition, permit or registration
1 The FINMA shall withdraw the licence, recognition, permit or registration of a supervised party if this party no longer fulfils the preconditions for the activity or seriously breaches statutory supervisory provisions.
2 Withdrawal means the supervised party loses the right to exercise the activity. The other consequences of the withdrawal are in accordance with the applicable financial market legislation.
3 These consequences are analogously applicable if a supervised party is active without possessing a licence, recognition, permit or registration.
Following withdrawal, SRO member financial intermediaries are subject to the direct supervision of the FINMA. In this conjunction they must within a period of 2 months either:
- join another SRO, or
- apply to the FINMA for a licence or for direct supervision.
This elective option is not available to attorneys-at-law and notaries. They are required to join another SRO within 2 months on a mandatory basis.
