On 1 January 2013, the Swiss Financial Market Supervisory Authority FINMA will put the FINMA Insurance Bankruptcy Ordinance into effect. The new Ordinance specifies the provisions of the Insurance Supervision Act and contains implementing provisions for bankruptcy proceedings conducted over insurance companies. It renders the courses of action adopted by FINMA and the procedural steps it takes during the bankruptcy process transparent.
The consultation on the FINMA Insurance Bankruptcy Ordinance (IBO-FINMA) stirred relatively little interest and FINMA only received a small number of responses. The consultation draft was generally favourably received. By making a couple of formal adjustments to the Ordinance, FINMA was able to take account of the few critical responses and suggestions for improvements.
Since 1 September 2011, FINMA has been responsible for initiating and conducting insurance bankruptcies. Moreover, FINMA has also been given the authority to issue specific implementing provisions in this area, which it has put to use by issuing IBO-FINMA. The new Ordinance is a fully coherent and comprehensive regulatory framework in which general aspects under bankruptcy law are clarified, particularly with regard to the key issue of handling tied assets. This improves the protection of policy holders which is particularly important in the case of insolvency. Issuing this Ordinance creates transparency for insurance companies, policy holders and the general public regarding the procedures and courses of action adopted by FINMA when conducting insurance bankruptcies.
Tobias Lux, Spokesperson, Tel. +41 (0)31 327 91 71, email@example.com