Reverse Solicitation Under Swiss Law

Reverse solicitation designates the circumstances in which a foreign financial intermediary provides certain services to a client upon the latter's request, without prior solicitation by the financial intermediary. Where the financial intermediary can rely on reverse solicitation, it generally avoids local licensing requirements and regulatory duties.

While the reverse solicitation exemption may play a significant role under the new Swiss financial services legislation, the exemption remains narrowly defined. Reliance on such exemption cannot constitute a business model. Reverse solicitation will not be an efficient tool for foreign asset managers (and other financial services providers) if they wish to compete with local players on the Swiss financial centre.