Restoring compliance with the law

FINMA must take action to restore compliance with the law when it becomes aware of violations or other irregularities. It decides how to meet this obligation at its own discretion.

The general clause in Article 31 FINMASA requires FINMA to take action when supervised institutions violate financial market laws or other irregularities arise. It empowers FINMA to issue a ruling ordering proportionate measures to address the problem. In contrast to the enforcement instruments set out in Articles 32-37 FINMASA, Article 31 also applies if no serious violation of supervisory law has occurred.

Possible measures

FINMA can restore compliance with the law through investigations or with enforcement proceedings. Depending on the nature of the violation or irregularity, FINMA can impose conditions on the organisation or internal processes of the company concerned, temporarily or permanently restrict its business activities, or order it to change the composition of its ultimate management within a specific deadline.