meta_id 3280781

On June 29, 2026, the Swiss Financial Market Supervisory Authority (FINMA) concluded enforcement proceedings against Swiss Fund Management AG in liquidation (SFM), BZ Berater Zentrum AG (BZ), and one individual for serious breaches of the rules of conduct under the Financial Services Act (FinSA). FINMA initiated the proceedings in 2024 following supervisory activities that revealed both institutions had invested approximately CHF 200 million in illiquid bonds with dubious value, primarily destined for financing overseas real estate development projects. The investigation established that SFM and BZ systematically breached their duty to avoid conflicts of interest and failed to adequately inform investors of inherent risks. The bond issuers were all affiliated with one another, and bond proceeds were transferred on an unsecured basis to real estate investment companies controlled by the individuals involved, contrary to advertising claims. FINMA determined that investor funds were invested in a non-diversified manner driven by financial self-interest, inconsistent with investors' risk profiles and unsuitable for pension provision objectives. During the period under review, BZ held approximately 2,000 asset management mandates. To protect investors and safeguard financial market reputation, FINMA revoked SFM's licence as a manager of collective assets and appointed Grant Thornton AG as liquidator. FINMA rejected BZ's application for authorisation as an independent portfolio manager, requiring it to cease asset management activities within 30 days of notification. FINMA imposed a multi-year industry ban on one responsible individual and confiscated over CHF 3 million in illegally generated commission accrued since the FinSA rules of conduct came into force. The ruling entered into legal effect on May 1, 2026, as the parties did not contest it within the appeal period. Approximately 150 individuals have initiated mediation proceedings against BZ with OFS Ombud Finance Switzerland.