Declaratory rulings

Declaratory rulings are the mildest official measure FINMA can use to sanction licence holders and individuals found to have committed market abuse.
FINMA can issue a declaratory ruling under Article 32 FINMASA where there is a serious violation of supervisory law by any supervised person or entity as defined in Article 3 FINMASA. As of May 2013, FINMA can also issue a declaratory ruling against individuals found to have seriously violated the ban on market manipulation and insider trading or disclosure requirements under stock exchange law.

Effects of a declaratory ruling

Declaratory rulings have no direct legal effect and do not give rise to any liability under civil or criminal law. They represent the mildest form of official sanction and are intended to encourage compliance with supervisory law and prevent repeated violations.

Additional measures

If the addressee of a ruling takes the necessary corrective measures of its own accord while enforcement proceedings are still under way, there is usually no need for additional measures to restore compliance with the law. However, depending on how serious the violation is, additional measures may be required, e.g. publication of the ruling, an industry ban or confiscation /ordering the disgorgement of profits.