Enforcement tools

FINMA has a broad range of enforcement tools to uphold supervisory law. When applying these tools, it is bound to observe constitutional principles and the rules governing administrative activity.
The various financial market laws define which instruments FINMA can use to enforce supervisory law in each area, while the Administrative Procedure Act (APA) sets out the procedure it must follow.

Wide range of measures

The wide range of enforcement tools at FINMA’s disposal includes precautionary measures, ordering action to restore compliance with the law, declaratory rulings, industry bans, cease and desist orders and bans on trading, publication of rulings, confiscation / ordering the disgorgement of profits, and withdrawal of authorisation, liquidation and bankruptcy. Other key tools that can be used against individuals are the watch list and business conduct letter.

Use of enforcement tools

FINMA must take account of the aims of financial market law (protecting creditors and investors, fair competition and the stability of the financial system) and the general principles of constitutional and administrative law when deciding which measures to take and how to apply them in each situation.