Press releases

03.02.2012UBS unauthorised trading: FINMA initiates enforcement proceedingsIn September 2011, the Swiss Financial Market Supervisory Authority (FINMA) announced that, along with the UK Financial Services Authority (FSA), it was jointly launching an independent investigation into the events surrounding trading losses incurred by UBS AG (UBS) in the London operations of its Investment Bank. +++
27.01.2012FINMA authorises takeover of Wegelin's non-US business by RaiffeisenThe Swiss Financial Market Supervisory Authority FINMA has authorised the split of Wegelin & Co. (Bank Wegelin) and the takeover of Wegelin's non-US business by Raiffeisen Switzerland. Bank Wegelin will in future only manage its remaining US clients. Bank Wegelin and its remaining managing partners with unlimited liability are responsible for settling any possible legal or financial consequences arising from the US business. +++
16.01.2012FINMA opens consultation on Banking Insolvency OrdinanceThe Swiss Financial Market Supervisory Authority FINMA has opened the consultation on the complete revision of the Banking Insolvency Ordinance. This revision was deemed necessary as a result of the foreseen amendments to the Swiss Banking Act: on 1 September 2011, the deposit protection scheme bill entered into force, while the new provisions of the "too-big-to-fail" bill should come into effect during this year. The new Banking Insolvency Ordinance shall specify the statutory rules on restructuring banks and applies to all banks and securities dealers. The consultation will end on 2 March 2012. +++
11.01.2012Sanctions in the KPT caseIn a ruling dated 6 January 2012, FINMA has concluded administrative proceedings against KPT Versicherungen AG (KPT) and three of its managers. It ruled that serious breaches of duty had taken place. These related in particular to the setting of the price for shares that were to be bought back as part of a planned merger in 2010, and to payments to directors under mandate agreements. In both cases, inadequate regard was paid to the rules on handling conflicts of interest. Based on these breaches of duty, FINMA has banned two former members of the board of directors from exercising a senior management function within the financial sector for four years and has ordered the confiscation of their unjustified payments. FINMA has appointed Peter Eckert to take over the interim management of KPT at director level and to ensure for an orderly completion or new appointments to the board of directors. These measures do not threaten KPT's operational activities and the solvency provisions are met. +++
20.12.2011Partial revision of the FINMA Stock Exchange Ordinance to become effectiveResponses were positive to the consultation on the partial revision of the FINMA Ordinance on Stock Exchanges and Securities Trading (SESTO-FINMA) conducted by the Swiss Financial Market Supervisory Authority and required only minimal adjustments. The revised FINMA Stock Exchange Ordinance will enter into force as planned on 1 January 2012. +++
13.12.2011Unauthorised trading: FINMA provides guidanceHow can investment banks control the risk of unauthorised trading? In a Newsletter published today, the Swiss Financial Market Supervisory Authority FINMA has summarised its expectations of market participants. FINMA will check selectively if and how institutions fulfil these standards. +++
09.12.2011Structured products: FINMA report identifies shortcomings in protecting investorsA review conducted by FINMA has shown that buyers of structured products are not adequately protected. Most of the prospectuses and the sales documentation are not easy to understand, too long and not structured in a uniform manner. From FINMA's viewpoint, the statutory regulations must therefore be improved. +++
07.12.2011Re-election of Swiss Takeover Board membersAt its recent meeting, the Board of Directors of the Swiss Financial Market Supervisory Authority FINMA elected the members of the Swiss Takeover Board (TOB) for the next term of office. It confirmed the re-election of the TOB president, Luc Thévenoz, and six other TOB members. By reason of the statutory term limit, the TOB's Vice-Chairman, Walter Knabenhans, and Thierry de Marignac will leave the Board. They will be replaced by Lionel M. Aeschlimann and Thomas A. Müller starting 1 January 2012. Raymund Breu has been appointed as new vice-chairman. +++
25.11.2011FINMA to open more offices in ZurichThe FINMA Board of Directors has decided to open more offices in Zurich. FINMA's head office, its centre of business activities and its entire Executive Board will remain in Bern. Up to 20 per cent of its staff will work in Zurich starting in spring 2012. +++
14.11.2011Federal Council re-elects FINMA's Board of DirectorsThe Federal Council has elected the members of the Swiss Financial Market Supervisory Authority FINMA Board of Directors: it confirmed the re-election of the board members standing for re-election and appointed three new members, Yvan Lengwiler, Joseph L. Rickenbacher and Eddy Wymeersch, to the board. FINMA's Board of Directors will thus comprise nine members as of January 2012. +++
10.11.2011Anti-money laundering: FINMA concludes its audit on dealing with PEPsThe Swiss Financial Market Supervisory Authority FINMA has investigated the way in which banks have dealt with "politically exposed persons" (PEPs). Most financial institutions have fulfilled their particular due diligence obligations satisfactorily to well; in four cases FINMA will open enforcement proceedings. FINMA has not identified the necessity to adjust the current regulations. +++
28.10.2011Mortgage market: FINMA approves Swiss Bankers Association’s revised self-regulationThe Board of Directors of the Swiss Financial Market Supervisory Authority FINMA has approved the revised guidelines of the Swiss Bankers Association "on examining, evaluating and settling mortgage-backed loans". FINMA points out, however, that alongside these qualitative provisions, new quantitative measures are also required to effectively counteract the growing risks for banks stemming from the increase in the number of loans being granted for residential properties. Moreover, these risks are further accentuated by the low-interest environment. +++
25.10.2011Revised FINMA circular on disclosure requirements for securities transactions The Swiss Financial Market Supervisory Authority FINMA will bring the revised Circular 08/11 "Disclosure requirements for securities transactions" into force on 1 November 2011. The changes made during the revision focus mainly on rendering the existing disclosure requirements prescribed in the former "Reporting obligation – stock exchange transactions" more precise. No additional requirements have been incorporated into the revised circular. +++
24.10.2011New capital adequacy rules for Swiss banksSwitzerland intends to implement the capital adequacy rules of the international Basel III framework for all banks. The Federal Department of Finance FDF is releasing the amended Capital Adequacy Ordinance for consultation, and FINMA is doing likewise with its adapted circulars. +++
16.09.2011UBS trading losses: FINMA and UK FSA to launch investigationThe Swiss Financial Market Supervisory Authority (FINMA) and the UK Financial Services Authority (FSA) are launching a comprehensive independent investigation into the events surrounding the trading losses incurred by UBS AG in its London operations. +++
07.09.2011Federal Council confirms measures against overheating in the mortgage businessThe Swiss Financial Market Supervisory Authority FINMA welcomes the Federal Council's intention to rapidly make the necessary adjustments to the capital requirements for the riskiest mortgage loans. +++
31.08.2011Sabine Kilgus and Daniel Zuberbühler to retire from FINMA's Board of DirectorsWhen their term of office finishes at the end of December 2011, Sabine Kilgus and Vice-Chair Daniel Zuberbühler will not be standing for re-election in their offices as members of the Swiss Financial Market Supervisory Authority FINMA Board of Directors. Both of them have made a valuable contribution to FINMA at a very difficult time during the financial crisis and to building up the authority itself. The Federal Council will announce their successors at a later date. +++
25.08.2011FINMA Circular on Credit Rating AgenciesFINMA Circular on Credit Rating Agencies
The circular on "Credit rating agencies" published today by the Swiss Financial Market Supervisory Authority FINMA governs the recognition of institutions that can issue credit ratings for regulatory use. The fully revised circular redefines FINMA's requirements on credit rating agencies for its various supervisory areas and standardises the conditions for recognition. It will enter into force on 1 January 2012. +++
28.07.2011FINMA publishes circular on "Provisions in reinsurance"The Circular on "Provisions in reinsurance" published today by the Swiss Financial Supervisory Authority sets minimum requirements for appropriate technical provisions in the reinsurance business. +++
27.07.2011FINMA launches consultation on its Stock Exchange OrdinanceThe Swiss Financial Market Supervisory Authority FINMA has opened the consultation for the revision of its ordinance on stock exchanges and securities trading (FINMA Stock Exchange Ordinance, SESTO-FINMA). The partial revision focuses primarily on the new rule regarding disclosure requirements for foreign collective investment schemes. Other aspects of this revision concern disclosure obligations where exact threshold values are reached and a clearer publication of the notifications received. The consultation period will end on 5 September 2011. +++
15.07.2011UBS client data: Federal Supreme Court upholds FINMA's decisionOn 18 February 2009, the Swiss Financial Market Supervisory Authority FINMA had ordered the release of a limited number of UBS client data to US authorities in order to avoid the threat of US authorities bringing criminal charges against the bank which could have in turn threatened its liquidity and stability. In its final decision today, the Federal Supreme Court confirmed that, in light of the then-prevailing situation, FINMA's order was legally correct. +++
02.05.2011FINMA publishes report on effectiveness and efficiency in supervisionOne of the seven strategic goals of the Swiss Financial Market Supervisory Authority (FINMA) is "Increasing the effectiveness and efficiency of supervision". In a report published today, FINMA outlines the steps it has taken to this end and the results it has achieved to date. FINMA is focusing on three aspects: adopting a systematically risk-based supervisory approach for all areas of supervision, further developing the supervisory instruments at its disposal, and optimising its organisation. With today's report, FINMA has fulfilled an obligation towards the Control Committees of the National Council and Council of States. +++
26.04.2011FINMA appoints Andreas Zdrenyk to the Executive BoardAndreas Zdrenyk has been appointed as FINMA's Chief Operating Officer (COO) and will become head of the new Operations division. In his new role, he will also become a member of the FINMA Executive Board, which will then comprise seven members. Mr Zdrenyk will take up his new position in the third quarter of 2011. +++
15.04.2011FINMA publishes Circular on Capital buffer and capital planning in the banking sectorThe definitive FINMA Circular "Capital buffer and capital planning in the banking sector" published today redefines the capital adequacy requirements for banks under Pillar 2 of the Basel Capital Accord. The Circular serves to replace the overall 20% safety margin of the minimum requirements in place until now with a differentiated regime that reflects and fleshes out current supervisory practice. Based on the new regime, the capital buffers required by FINMA are structured according to objective criteria and are risk-based. The capital buffers required are aligned with each institution's size as well as the nature and complexity of its operations. They are to be made anticyclical. The new regime will not trigger a need for new capital for most institutions. Rather, the Circular sets down a higher lower limit for their capital base. The Circular will enter into force on 1 July 2011. +++
25.03.2011FINMA proposes amendment to the Circular on Rating AgenciesFINMA is opening the consultation period for the amendment of the circular on rating agencies. The present modifications aim to extend the requirements for rating agencies to all entities supervised by FINMA and to create standardised conditions for their recognition. They also take into account the developments at the level of international standard setters as well as the specificities of the Swiss market environment. The recognition requirements set out in the draft circular are intended to provide a minimum quality of rating. The consultation period ends on 13 May 2011. +++
22.03.2011FINMA Annual Media Conference: Focus on Strengthening Resistance to CrisisFINMA can look back on 2010 as a challenging year in which both economic conditions and the operational development of the supervisory authority, which employs around 400 staff, continued to demand a great deal of attention. In addition to presenting its annual report and financial statements for 2010, at today's annual media conference FINMA also emphasised the challenges and risks which the current low interest rate environment poses for the stability of the financial sector. In addition, the media conference focused on the national and international debate on banking regulation which has been going on since the financial crisis, against the backdrop of the "too big to fail" issue and the "Basel III" reform package drawn up by the Basel Committee. +++
16.03.2011FINMA closes investigation into sia Abrasives caseThe Swiss Financial Market Regulatory Authority FINMA has closed its investigation initiated in January 2009 into the sia Abrasives case. It ruled that Giorgio Behr breached his disclosure obligations under Article 20 of the Stock Exchange Act when building a stake in sia Abrasives. Bank am Bellevue actively aided him and, by doing so, breached its organisational duties and its duties to assure proper business conduct. FINMA filed a criminal complaint against Giorgio Behr with the Federal Department of Finance. +++
07.03.2011FINMA names new Executive Board membersThe Swiss Financial Market Supervisory Authority FINMA has appointed Yann Wermeille and David Wyss as new members of the Executive Board. They both had previously served as members of the Extended Executive Board and will replace Franz Stirnimann, Head of Markets Division, who is retiring at the end of the year. The Enforcement Section headed by David Wyss will be split from the existing Markets Division and in future will operate as an independent division of its own. Yann Wermeille will take over as Head of Markets Division. The new organisation will take effect on 15 March 2011. +++
28.02.2011HSBC data theft: FINMA completes investigationFollowing a comprehensive investigation into the large-scale theft of data from HSBC Private Bank (Suisse) SA, FINMA has reprimanded the bank for deficiencies in its internal organisation and IT controls. FINMA has also called on the bank to see through the measures it has already initiated to comply with the legal requirements. FINMA will ensure that these measures are implemented promptly. +++
25.02.2011Rainer Borer to become FINMA's communications officerRainer Borer, 47, is to take on the position as person responsible of communications at FINMA as of 1 September 2011. In this role he will have functional responsibility for FINMA's internal and external communications. One of the key aspects of his work will be strategic communications. +++
15.02.2011Changes in the asset management industryDevelopments in Switzerland and abroad are increasing the pressure for institutional asset management industry to be subject to supervision. At present the only asset management activity in Switzerland which comes under mandatory prudential supervision is collective investment schemes. There is no mandatory prudential supervision for other asset management activities; voluntary submission is only possible for foreign collective investment schemes under restrictive conditions. Many asset managers are therefore seeking to obtain licences by pro forma launches of statutory supervised activities, a practice which FINMA cannot support. +++
31.01.2011FINMA launches consultation period for the Circular on "Capital buffer and capital planning"The FINMA Circular "Capital buffer and capital planning" redefines the capital adequacy requirements for banks under Pillar 2 of the Basel Capital Accord. FINMA published a discussion paper on this topic in June 2010 and took the comments received into account when preparing this draft Circular. The consultation period will end on 14 March 2011. The main aim of the Circular is to make the capital buffer required by FINMA in excess of the legal minimum subject to objective criteria and risk-based. The size and complexity of an institution and its business activities have been considered in the measurement of the capital buffers. In addition, the buffers are to be made anticyclical. The Circular effectively brings transparency and objectivity to the existing FINMA supervisory practice. Consequently, for most institutions the new regime will not trigger a need for new capital. +++
19.01.2011FINMA Circular on Remuneration Schemes: transition period for implementation ends; some evidence of progress being madeThe transition period for financial institutions subject to FINMA Circular 2010/01 (Remuneration Schemes) to implement its provisions ended on 31 December 2010. The financial institutions concerned must now submit an implementation report to FINMA by the end of April 2011. FINMA has issued today guidelines for this reporting. FINMA's supervisory experience in 2010 suggests that progress in addressing key areas covered by the Circular is being made, though not evenly across all institutions. +++
17.01.2011FINMA, FDF and SNB sign tripartite agreement on collaborationCollaboration between the three authorities that deal with financial market issues should be further enhanced. To this end, the Federal Department of Finance (FDF), the Swiss Financial Market Supervisory Authority (FINMA) and the Swiss National Bank (SNB) have signed a tripartite memorandum of understanding. +++
23.12.2010Senior Supervisors Group Issues Report on Risk Appetite Frameworks and IT InfrastructureSenior financial supervisors from ten countries – collectively, the Senior Supervisors Group (SSG) – today issued a report that evaluates how financial institutions have progressed in developing formal risk appetite frameworks and in building out highly developed IT infrastructures and firmwide data aggregation capabilities. +++
22.12.2010Anne Héritier Lachat is new Chair of FINMA+++
17.12.2010Alain Bichsel is leaving FINMAFINMA's Head of Communications, Alain Bichsel, has decided to leave FINMA at the end of March 2011 to take up a position at a financial company, where he will be responsible for media relations. +++
16.12.2010New FINMA Anti-Money Laundering Ordinance enters into force on 1 January 2011FINMA has harmonised its three former anti-money laundering ordinances and combined them into one single ordinance. The new ordinance will enter into force on 1 January 2011. It is directed at all financial intermediaries falling under the Anti-Money Laundering Act and determines how the regulations to prevent money laundering and terrorist financing are to be implemented. Transitional periods are foreseen for the implementation of the new provisions. +++
10.12.2010FINMA and SIX Exchange Regulation reinforce supervision of financial reportingWhile FINMA is to concentrate on the reviewing and implementation of regulations on accounting standards it enacts, all other recognised financial reporting standards applied by issuers are to be monitored by SIX Exchange Regulation. +++
26.11.2010FINMA responds to CC reportFINMA has commented on the recommendations made by the Control Committees (CC) in their report on the financial crisis and the handing over of UBS client data. FINMA's comments underscore the independence of its decision-making. Based on the information available to it today, FINMA will not reinvestigate the question of individual culpability of the former UBS senior executives. +++
26.11.2010FINMA Circular on Financial Intermediation under the Anti-Money Laundering Act comes into force on 1 January 2011The Circular 2011/1 on Financial Intermediation under the Anti-Money Laundering contains the implementing provisions for the Ordinance on the Professional Practice of Financial Intermediation, which entered into force on 1 January 2010. It is aimed at financial intermediaries in the para-banking sector and self-regulatory organisations recognised by FINMA. The Circular was adopted by FINMA's Board of Directors following the consultation period for interested parties and will come into effect on 1 January 2011. +++
25.11.2010FINMA publishes revised circulars on capital adequacy and risk diversificationFINMA will put the revised circulars on credit and market risks, disclosure, and risk diversification for banks into effect on 1 January 2011. It is thereby adapting its implementing provisions for the Ordinance on Capital Adequacy and Risk Diversification, which has recently been revised by the Federal Council.
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24.11.2010FINMA warns of illegal and fraudulent financial intermediariesSince 2009 FINMA has stopped the activities of 66 illegally operating companies that violated financial market legislation. These cases resulted in losses amounting to 220 million francs for investors. Today FINMA is publishing a summary report on the action it is taking in its fight against illegal and fraudulent financial intermediaries. It also refers to current key areas and the way in which illegal companies operate, ultimately appealing to investors to consider their purchase decisions carefully and to only conclude transactions after thorough examination of the offer and the provider.
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19.11.2010FINMA sets framework for merger between KPT and SanitasThe Swiss Financial Market Supervisory Authority FINMA has in principle given approval for the planned merger between KPT and Sanitas. FINMA, however, has made its approval contingent upon fulfilment of strict conditions. It is now up to KPT and Sanitas to decide whether they will proceed with the merger under these conditions. FINMA will continue with the legal action taken against KPT on account of the structure of its employee participation scheme and rapidly bring it to a close. +++
10.11.2010Distribution rules – FINMA launches discussion on ways to improve client protectionIn its investigation into the distribution of capital-protected structured products to retail clients at the start of this year, FINMA identified shortcomings in relation to client protection. The law as it stands does not adequately protect the interests of clients when financial products are bought and marketed. FINMA is now putting forward various proposals on how the protection of retail clients could be improved. Implementation of the proposed measures would make a major contribution to strengthening the protection of clients and of Switzerland's reputation as a financial centre. Interested parties are invited to give their views on this topic. +++
01.11.2010Monica Mächler appointed Chair of the IAIS Technical CommitteeMonica Mächler, Vice-Chair of the Board of Directors of FINMA, has been elected Chair of the Technical Committee of the International Association of Insurance Supervisors (IAIS). The Technical Committee is the central standard-setting body for the IAIS.
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22.10.2010FINMA position paper on risks in cross-border financial servicesFINMA has issued a new position paper addressing the increased risks in cross-border financial business. It calls on supervised institutions to comply with foreign supervisory law and define an appropriate service model for each target market. As part of its ongoing supervision, FINMA will in future increasingly assess whether supervised institutions are aware of the risks inherent in their cross-border operations and take appropriate measures to mitigate them. FINMA's expectations set out in the paper will also be reflected in its future enforcement practice. +++
04.10.2010Committee of experts on "too big to fail" issue – FINMA and SNB recommend rapid implementation of measuresThe committee of experts appointed by the Swiss Federal Council to examine ways of limiting economic risks posed by large companies published its final report today. Its recommendations focus on the banking industry, where the too big to fail (TBTF) problem is particularly serious. At present, there is no doubt that the two big banks are systemically important in Switzerland. +++
08.09.20102009 financial reporting on occupational pension schemes2009 is the fifth year for which private life insurers in Switzerland have provided comprehensive financial reporting on occupational pension schemes. 91.9% of all income from the savings, risk and cost processes in 2009 flowed back to insured persons in the form of insured benefits, increased technical provisions and participation in surpluses. Average earnings distribution therefore exceeded the legally prescribed minimum of 90%. +++
18.08.2010FINMA Chairman Eugen Haltiner steps downEugen Haltiner will step down as chairman of the FINMA Board of Directors at the end of December 2010. Haltiner oversaw the successful merger of the three predecessor authorities during an extremely difficult time. His successor will be appointed by the Federal Council in autumn 2010. +++
23.07.2010FINMA provides information on stress testsThe Swiss Financial Market Supervisory Authority FINMA is issuing information on the stress tests conducted on the country’s two large banks. In its latest analysis, FINMA tested the resistance of these institutions to a global recession, accompanied this time by a deterioration in the finances of European states. Should such a stress event arise, both banks would still have a solid capital base, with tier 1 capital ratios of at least 8%. +++
14.07.2010FINMA is adapting its regulations on capital adequacy and risk diversification for banksThe financial market crisis clearly demonstrated the shortcomings in the trading business and securitisations of banks and the fragility of the interbank market. Based on new standards of the Basel Committee and the European Union, FINMA intends addressing these defects and is opening a consultation to adapt four circulars that regulate this area. The consultation is being conducted in agreement with the State Secretariat for International Financial Matters (SIF), which, at the same time, is also holding a consultation on amending the Capital Adequacy Ordinance. Both consultations end on 20 August 2010. +++
13.07.2010FINMA is opening a consultation for the Circular on "Technical provisions in reinsurance"Technical provisions are formed to ensure that insurance companies can cover their obligations to policyholders arising through insurance coverage. The requirements defined in this Circular relate to the reinsurance business and are directed at all insurance companies active in this business. It defines minimum requirements to ensure that insurance companies have a sufficient level of technical provisions from an actuarial viewpoint. The consultation ends on 15 September 2010. +++
11.06.2010Consultation period for the FINMA Circular on Financial Intermediation under the Anti-Money Laundering ActFINMA is opening the consultation period for the Circular on Financial Intermediation pursuant to the Anti-Money Laundering Act. The Circular contains the implementing provisions for the Ordinance on the Professional Practice of Financial Intermediation, which came into force on 1 January 2010. It is aimed at financial intermediaries in the para-banking sector and self-regulatory organisations recognised by FINMA. The deadline for submitting comments on the draft Circular is 12 July 2010. +++
11.06.2010FINMA proposes to harmonise the Anti-Money Laundering Ordinances FINMA is opening the consultation period for the draft on the harmonisation of the FINMA Anti-Money Laundering Ordinance. Drawn up by the respective predecessor institutions, the three current FINMA anti-money laundering ordinances in force have been combined in this draft of the ordinance. The ordinance is directed at all financial intermediaries falling under the Anti-Money Laundering Act. The deadline for submitting comments on the draft Anti-Money Laundering Ordinance and the accompanying report is 12 July 2010.
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31.05.2010FINMA welcomes the Control Committees' reviewFINMA welcomes the Control Committees' comprehensive review on how the federal authorities coped before and during the financial crisis. The supervisory authority had placed all the documents and information requested at the disposal of the Control Committees. FINMA will carefully examine the report's conclusions and will, in line with the response deadline set by the Control Committees, comment on the report before the end of 2010. +++
12.05.2010Federal Council report supports FINMA's critical self-analysisThe report published today by the Federal Council on the role of the supervisory authority during the financial crisis largely concurs with the analysis which FINMA itself conducted in summer 2009. The report does not find any fundamental weaknesses in the organisation, governance or the legal bases of FINMA. The findings of the Federal Council's report support FINMA's past and current efforts to put the lessons learnt from the financial crisis into practice. +++
27.04.2010FINMA defines supervisory requirements on supplementary health insurancesThe Circular on health insurance under ISA confirms the supervisory requirements on tariffs and technical reserves relating to supplementary health insurances. In particular, it specifies FINMA's mandate to safeguard, in a preventative control procedure on the approval of insurance tariffs, that premiums levied are neither so low as to pose a risk to solvency nor so high as to constitute an abusive practice. To draft the Circular, FINMA held a consultation period and received comments from 27 parties. The circular will come into force on 1 May 2010. +++
21.04.2010New liquidity regime for Swiss big banksIn the interests of a stable Swiss financial centre, the Swiss Financial Market Supervisory Authority FINMA and the Swiss National Bank (SNB) have, in collaboration with the two big banks, Credit Suisse and UBS, substantially revised the liquidity regime for big banks. The new liquidity regime will enter into force on 30 June 2010. +++
16.04.2010FINMA's Annual Financial Statements 2009 – operating costs below budget foreseen for 2009The Federal Council approved FINMA's Annual Financial Statements 2009 at its meeting held on 14 April 2010. These are the first annual financial statements of the merged supervisory authority. The operating costs remained below the budget foreseen for 2009. This now concludes FINMA's annual report published on 23 March 2010. Both the annual report and the annual financial statements can be viewed on FINMA's website. +++
23.03.2010FINMA Annual Media Conference 2010: Stability affords protection and is an advantage for Switzerland as a locationThe Swiss Financial Market Supervisory Authority FINMA underwent a turbulent year in 2009. In its first year as the new combined financial authority, it had to contend with a challenging economic environment for those under its supervision, tough decisions and time-consuming investigations. At today’s media conference, FINMA focused on the importance of the stability of financial institutions for creditors, investors and insured persons. It spoke about the introduction of the Swiss Solvency Test in the insurance industry as a measure to promote stability, and two areas in which it sees an urgent need for action in the Swiss financial centre: the problem of institutions being too big to fail and legal risks in cross-border private client business.
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12.03.2010FINMA and the SNB intensify their collaboration in the area of financial stabilityThe Swiss Financial Market Supervisory Authority (FINMA) and the Swiss National Bank (SNB) have revised their Memorandum of Understanding (MoU) on financial stability concluded in 2007. During the financial crisis and thereafter, the two institutions collaborated much more closely. Based on the insights obtained over the past few years, the MoU has been revised, and on 23 February 2010 it was signed. +++
11.03.2010FINMA is investigating the data stolen at HSBCFINMA has subsequently instigated formal administrative proceedings against HSBC. It is investigating how in 2007 a significant theft of client data could have happened and if the organisational and technical measures implemented by HSBC since this incident to prevent such occurrences comply with the legal requirements. +++
02.03.2010Investigations into Madoff and Lehman cases completedFINMA completed two large-scale investigations in 2009. The first concerned the impact on Switzerland as a financial centre of the fraud committed in the USA by the US investor Bernard L. Madoff. The second looked at the distribution of structured products that were guaranteed by subsidiaries of Lehman Brothers Holdings Inc. Both cases led to losses for investors. FINMA identified the need for certain financial intermediaries to take corrective measures and has requested the necessary steps to be taken. The investigations did reveal, however, that current Swiss legislation does not adequately protect investors in investment advisory and wealth management services. FINMA sees a clear need for regulatory action in this regard and has therefore launched a regulatory project in relation to distribution rules. +++
01.02.2010FINMA welcomes EU committee's recognition of the equivalence of Swiss reinsurance supervisionIn its announcement of 1 February 2010, the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) acknowledged on behalf of its members the equivalence of Swiss supervision of reinsurance with Directive (EC) 2005/68 on reinsurance. +++
21.01.2010FINMA appeals Federal Administrative Court rulingThe FINMA Board of Directors has decided to refer the Federal Administrative Court ruling on the order to release client data to the US authorities to the Federal Supreme Court. In doing so, FINMA is using the opportunity to have Switzerland's supreme court pass judgment on the extent of the Financial Market Supervisory Authority's legal latitude in crisis situations. +++
08.01.2010Comment on the Federal Administrative Court ruling on the furnishing of bank client data to the US authoritiesOn 5 January 2010 the Federal Administrative Court ruled that the order issued by FINMA on 18 February 2009 to surrender client data to the US authorities was unlawful. At the same time the court expressly acknowledged the difficult situation which FINMA had been called on to resolve. Nevertheless, it maintained that FINMA should not have issued this order under its own authority. Instead, it should have referred the matter to the Federal Council for approval. +++
06.01.2010FINMA launches liquidation proceedings at Aston BankThe Swiss Financial Market Supervisory Authority FINMA has withdrawn the banking licence and securities dealing licence of Aston Bank, Lugano. FINMA has determined that the bank had severe organisational failings and was overindebted. Liquidation proceedings have therefore been launched. Investors who hold privileged deposits are covered by the Deposit Protection Scheme. +++
16.12.2009Settlement between Credit Suisse and U.S. authorities regarding breach of U.S. sanctions – clarifications by FINMAOn 16 December 2009, Credit Suisse signed a settlement with various U.S. authorities regarding breaches of U.S. law. The settlement covers USD payments processed for persons from countries subject to U.S. economic sanctions. FINMA has followed this case closely from the outset. It has reprimanded the Bank for its actions in light of Swiss supervisory law and has requested disciplinary measures. +++
18.11.2009FINMA initiates proceedings in sia Abrasives caseThe Swiss Financial Market Supervisory Authority is conducting an investigation into potential breaches of disclosure obligations in connection with the building of a major stake in sia Abrasives. In this connection, it is initiating proceedings against the investor Giorgio Behr and other persons. In a second proceeding, FINMA is looking into the role played by Bank am Bellevue, which possibly supported the stake building in sia Abrasives. +++
11.11.2009FINMA publishes Circular on remuneration schemesThe FINMA Circular on remuneration schemes is intended to have a lasting effect on remuneration practices in the financial sector. Remuneration schemes should not create incentives to take inappropriate risks and thereby potentially damage the stability of financial institutions. One of the focal points of the Circular is variable remuneration. In drawing up the Circular, FINMA has taken into account the results of the consultation process and international developments, in particular the latest standards issued by the Financial Stability Board. The Circular will take effect on 1 January 2010. +++
03.11.2009FINMA closes investigation in Sulzer caseThe Swiss Financial Market Supervisory Authority closed its comprehensive investigation into the Sulzer case, which it began in spring 2007. The investigation was prompted by a notice in April 2007 which disclosed that Everest Beteiligungs GmbH held a stake of more than 31% in Sulzer AG. In its declaratory ruling in January 2009, FINMA decided that the investors behind Everest, infringed their legal disclosure obligations. FINMA then rebuked the Zürcher Kantonalbank, the Zurich branch of Deutsche Bank AG and the NZB Neue Zürcher Bank for their involvement in this hidden stake building. In one case FINMA ordered that personnel measures be taken. FINMA furthermore filed a criminal complaint with the Federal Department of Finance against the investors who infringed their legal disclosure obligations. +++
27.10.2009FINMA completes its Executive BoardFINMA Board of Directors appointed Mark Branson to manage the Banks division, thereby completing FINMA Executive Board. Mark Branson will assume his duties at FINMA as of 1 January 2010. +++
02.10.2009FINMA provides information on stress testsFINMA has regularly and systematically conducted stress tests to ascertain the potential for loss in the large Swiss banking institutions in case of a further serious deterioration in economic conditions. In the case of the two large systemically relevant banking groups, FINMA requires that they have higher than normal capacity in order to absorb, at any time, unforeseen shocks. According to recent analysis, it was identified that even after the effect of a severe stress event they would still maintain a stable capital base with a Tier 1 capital ratio over 8%. The ECOFIN Council and the Committee of European Banking Supervisors (CEBS) yesterday announced details of a coordinated EU-wide stress testing analysis. +++
30.09.2009FINMA defines its strategic goalsFINMA's strategic goals for 2010 – 2012 have been approved by the Federal Council. In so doing, the Federal Council has declared its support for FINMA's strategic positioning. FINMA's seven thematic areas will form the basis for concrete initiatives and projects which are due to be implemented in the next three years. +++
14.09.2009FINMA presents report on the financial market crisisThe “Financial market crisis and financial market supervision” report issued by FINMA provides a comprehensive analysis of the financial market crisis and the ensuing decisions and actions taken by the Swiss Federal Banking Commission (SFBC). None of those involved recognised in time the origins of the crisis or the full extent of the dangers it posed. Furthermore, the analysis reveals certain weaknesses and a partial lack of effectiveness in banking supervision. The report concludes, however, that the SFBC responded rapidly and decisively, and that fundamental decisions for stabilising the financial centre were made in a targeted and timely manner. The SFBC quickly learned its lessons from the crisis and implemented remedial actions.
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03.09.20092008 financial reporting on occupational pension schemes2008 was the fourth year in which the private life insurance segment in Switzerland provided comprehensive financial reporting on occupational pension schemes. As previously, guaranteed insurance obligations remain covered in full by tied assets that are held separately from other corporate assets. 100% of the proceeds earned from savings, risk and cost processes in the 2008 operating year flowed back in their entirety to the insured persons in the form of insured benefits, increased technical provisions and participation in surpluses. Consequently, the average earnings distribution was in excess of the legally prescribed minimum of 90%. +++
01.09.2009Opening of consultation period on the "Supplementary social health insurance" Circular FIMMA is opening the consultation period on the Circular "Supplementary social health insurance and special issues in relation to private health insurance". This Circular is directed at supervised private insurance companies and health insurers that conduct business in the "health" or "health insurance" segment. FINMA’s aim in issuing this Circular is to improve transparency, to ensure equality of treatment for supervised institutions, and to standardise and facilitate the submission and approval process in the face of increased technical requirements. The deadline for submitting comments on the draft Circular is 31 October 2009. +++
24.08.2009FINMA to streamline its operationsThe FINMA Board of Directors has decided to restructure the supervisory body's internal organisation. The number of divisions will be reduced from seven to four. Management of the restructured divisions of Banks, Insurance, Markets and Strategic and Central Services will be in the hands of the FINMA Executive Board headed by Patrick Raaflaub. The Executive Board will be supported by an "Extended Executive Board". The purpose of the reorganisation is to simplify structures, expand interdisciplinary functions and relieve the Executive Board of operational duties. The reorganisation will take effect on 1 October 2009. +++
19.08.2009FINMA welcomes government transactionFINMA supports the decision taken by the Swiss Federal Council to sell off the government's stake in UBS immediately and in full. The funds made available by the government last autumn as part of a package of measures to stabilise the Swiss financial system were intended as a temporary measure, as at the time no private investors could be found. Today, UBS has a stable, sound capital base. +++
20.07.2009FINMA proposes amendments to the Capital Adequacy Ordinance for cantonal and cooperative banksFINMA is opening a consultation period to consider amendments to the Capital Adequacy Ordinance (CAO). The proposed amendments relate to the reduction for cantonal banks (Art. 33 sect. 3 CAO) and the additional funding obligation for cooperative banks (Art. 16 sect. 4 and Art. 28 sect. 2 CAO). FINMA is proposing the abolition of both exception rules, thereby requiring institutions to implement an appropriate and higher-quality capital base. The consultation process takes place with the approval of the Federal Finance Administration and will end on 31 August 2009. +++
14.07.2009Kaupthing-Kunden in der Schweiz werden vollständig ausbezahltDie Anleger und Gläubiger der Kaupthing Bank Luxembourg S.A., zu der auch die Zweigniederlassung in Genf gehört, werden vollständig ausbezahlt. Dies wurde möglich, weil der Umstrukturierungsplan der insolventen Kaupthing Bank Luxembourg S.A. erfolgreich abgeschlossen werden konnte und die erforderliche Genehmigung erhielt. Die FINMA konnte die von ihr mit Verfügung vom 3. Februar 2009 zum Schutz der Gläubiger und Anleger der Kaupthing Bank Luxembourg S.A. in der Schweiz angeordneten Massnahmen wieder aufheben. +++
03.06.2009FINMA is opening the consultation period for the Circular on remuneration systemsFINMA is opening the consultation period for the Circular on remuneration systems, which will enter into force on 1 January 2010. The Circular will have a direct impact on the remuneration systems of the financial institutions concerned. It will aim to ensure that remuneration systems do not to provide incentives to take inappropriate risks that could threaten the stability of financial institutions. Financial institutions will have to structure their variable remuneration packages (bonuses) on a sustainable and long-term basis in line with economic profit while taking into account the costs related to all risks entered into. Furthermore, Boards of Directors will have to discharge their duties more carefully. They are responsible for the remuneration policy of the entire company and will have to disclose the company’s remuneration policy in a remuneration report. The consultation period for the Circular will run until 14 August 2009. +++
31.03.2009FINMA starts work in a challenging environmentThe Swiss Financial Market Supervisory Authority began operating on 1 January 2009. FINMA was formed and commenced operations in a challenging environment, in which the merged authorities were put under extreme pressure by the financial market crisis and the repercussions it has had for the institutions supervised by them. The task now facing the organisation is to draw lessons from the financial crisis in conjunction with national and international institutions, to expand its supervisory mandate in a targeted fashion and to design Switzerland’s future approach to supervision. +++
18.02.2009FINMA makes possible settlement between UBS and the US authorities and announces the results of its own investigationFINMA welcomes the settlement reached between UBS and the US authorities thereby avoiding the looming threat of formal criminal charges being filed against the bank in the USA. In order to avert the drastic consequences such charges would have for UBS and the stability of the Swiss financial system, FINMA has ordered that a limited quantity of client data be handed over to the US authorities immediately. FINMA is also publishing the results of the investigation carried out by the Swiss Federal Banking Commission (SFBC) in relation to this matter. The SFBC ruling reprimands UBS for a severe breach of certain provisions of the Swiss Banking Act by individual staff members and serious shortcomings in dealing with the legal risks associated with its business with US clients. +++
10.02.2009Severe reduction in variable compensation at UBSThe Swiss Financial Market Supervisory Authority (FINMA), in its decision dated 3rd February 2009, allows UBS to distribute CHF 1.8 billion of variable remuneration for the year 2008. Besides the legally guaranteed payments, UBS shall be entitled to distribute discretionary payments. The reduction of the overall amount of the variable remuneration by UBS is massive in comparison to the international standards and to the past years. Besides the limitation of the variable remuneration relevant for the 2008 annual results, FINMA decided to limit the deferred components. The latter will be distributed over several years and shall be paid if very strict conditions are fulfilled. +++
26.01.2009FINMA finds infringement of the obligation to disclose in the Sulzer caseThe Swiss Financial Market Supervisory Authority (FINMA) ruled on 22 January 2009 that Ronny Pecik sen. and Georg Stumpf, together acting in an organized group, infringed their disclosure obligations under Art. 20 of the Stock Exchange Act when building their stake in Sulzer AG towards the end of 2006 and beginning of 2007. FINMA will, as a result, file a criminal complaint with the Federal Department of Finances as required by law. +++
15.01.2009FINMA publishes minimum standard for minimum standards in asset managementThe Swiss Financial Market Supervisory Authority FINMA is to publish its circular on the benchmarks for minimum standards for self-regulation in the asset management industry. It also establishes the procedure for recognising such minimum standards. The benchmarks define a code of conduct for self-regulation, which asset management industry organisations have drawn up for the FINMA to recognise as minimum standards. +++
09.12.2008FINMA ready for launchThe new Swiss Financial Market Supervisory Authority (FINMA) will commence operations on 1 January 2009. On that date, the Federal Act on the Swiss Financial Market Supervisory Authority (FINMASA), which the Swiss Parliament approved on 22 June 2007, will go into full legal force. The effect of the Act is to merge three bodies – the Federal Office of Private Insurance (FOPI), the Swiss Federal Banking Commission (SFBC) and the Anti-Money Laundering Control Authority – into the Swiss Financial Market Supervisory Authority FINMA. Until their merger and incorporation into FINMA, these three authorities will retain responsibility for their own areas of activity.
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