Intensive supervison in a crisis

FINMA can use intensive supervision to handle a crisis or heightened risks at supervised institutions. It has a dedicated team for this purpose which analyses the situation in detail and then works out corrective measures.

FINMA can intensify its supervision of an institution facing a particularly sensitive or critical situation. An internal committee decides when this is necessary.

Procedure

Intensive supervision is one of FINMA’s direct supervisory instruments. The Intensive Supervision Team (TIS), comprising crisis management specialists from various disciplines, uses the following methods, among others:

  • on-site investigations
  • discussions and negotiations with relevant parties
  • direct observation of working processes.

Corrective measures

TIS initiates corrective measures together with the supervised institution when weaknesses or rule violations are identified. These can concern the institution’s organisation, staff, operations or finances and extend as far as restructuring or even ceasing activities that require a licence.
Where FINMA and the institution concerned disagree over the situation and the measures required, enforcement must normally be considered. In such cases, FINMA initiates enforcement proceedings.