Measures against licence holders, their owners, ultimate management and staff

Financial market laws provide for a wide range of measures against licence holders and other parties responsible for violations of supervisory law. These are aimed at ensuring the financial market’s stability and integrity and, in particular, at protecting investors. Where necessary, FINMA enforces supervisory law using coercive measures under administrative law.

FINMA has a range of administrative sanctions at its disposal, the most important being the enforcement instruments set out in Article 29 ff. FINMASA. The broad spectrum of measures available for this purpose ranges from issuing declaratory rulings to licence withdrawals and specific orders under Article 31 FINMASA to restore compliance with the law. A licence withdrawal can result in liquidation and, in the case of over-indebtedness, bankruptcy. FINMA can also order the disgorgement of profits generated and costs avoided by illegal means, as well as publishing the final ruling.

FINMA enforcement policy

Updated: 25.09.2014 Size: 0.31  MB
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Measures against ultimate management, owners and staff

Violations of supervisory law often call into question whether individuals entrusted with the strategic and executive management of a company still meet all the requirements for proper business conduct. In addition to a declaratory ruling (reprimand), appropriate measures in response to misconduct by such individuals include an industry ban, an activity ban, confiscation / disgorgement order, or publication of the final ruling. Shareholders and partners with a qualified participation can also have their voting rights suspended under Article 23ter BA.

Precautionary measures

If there is an immediate threat to investors, creditors and policyholders, as well as the financial market as a whole, FINMA can order precautionary measures while enforcement proceedings are under way, in particular by appointing an investigating agent to clarify the facts.