Archive press releases 2010

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. +++