Press releases

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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