FINMA distinguishes between the following types of administrative proceedings for the purposes of financial market enforcement:
- Regulation of institutions: administrative proceedings against authorised institutions and companies (e.g. banks, securities dealers, fund management companies, distributors, insurance companies and self-regulatory organisations under the Anti-Money Laundering Act as well as approved audit companies).
- Subordination process: proceedings against companies and individuals carrying on a business for which a FINMA licence, authorisation, registration or approval is required.
- Insolvencies: bankruptcy proceedings including proceedings for the purpose of restructuring of ailing banks pursuant to the Swiss Banking Act and Swiss Stock Exchange Act.
- Market supervision: investigative proceedings to establish whether market participants are in breach of FINMA Market Behaviour Rules.
- Disclosure matters: proceedings to establish whether investors are in breach of stock exchange disclosure and reporting requirements.
- Product supervision: proceedings against approved fund products.
- Watch list andletter regarding assurance of proper business conduct: any action that may be required by FINMA in relation to legal disputes ranging from entries in the watch list to letters regarding assurance of proper business conduct.
FINMA's enforcement actions are primarily taken against companies under supervision or carrying on business without the necessary licence or authorisation. However, where a serious supervisory breach is suspected, FINMA may in addition, or exclusively, initiate administrative proceedings against individuals, for example executive officers, proprietors or employees of supervised companies. Furthermore, FINMA may commence administrative proceedings against unsupervised individual investors in public companies if there is reason to suspect that they have failed to comply with their disclosure obligations.