Swiss Financial Market Supervisory Authority calls for expanded legal authority to intervene earlier in banking governance issues and impose stricter penalties following Credit Suisse lessons.
"It does not simply want to issue more rules, but to be able to be more consistent in the event of a breach of the existing rules"
The Swiss Financial Market Supervisory Authority (FINMA) is pushing for significant expansion of its regulatory powers in the aftermath of the Credit Suisse crisis. The financial watchdog seeks legal amendments that would enable earlier intervention in cases of corporate governance violations and the ability to impose stricter penalties. FINMA's chairperson Marlene Amstad emphasized that the goal is not to create additional regulations but to ensure more effective enforcement of existing rules. The proposed changes would give FINMA new tools for preventive action and enhanced authority to communicate about its supervisory activities.
In 2024, FINMA demonstrated robust oversight through comprehensive inspection programs across the financial sector. The authority conducted 111 on-site inspections of banks, 55 of insurance companies, and 20 in the asset management sector. Its enforcement activities included 73 inspections and the completion of 38 investigations targeting both companies and individuals. The supervisory body also performed stress tests focusing on mortgage portfolios and interest-related risks to assess financial resilience.
Following the historic UBS acquisition of Credit Suisse, FINMA has intensified its supervision of the combined entity. The authority conducted approximately 40 on-site inspections both within Switzerland and internationally, reflecting the heightened scrutiny of this systemically important institution. This focused oversight demonstrates FINMA's commitment to ensuring stability during the ongoing integration process and preventing any potential systemic risks to the Swiss financial system.
A significant emerging challenge identified in FINMA's oversight is the sharp rise in cyber threats, with attack reports increasing by 30% in 2024. This trend underscores the need for enhanced digital security measures across the financial sector. Looking ahead, FINMA emphasizes the importance of preventive measures and seeks additional resources to ensure financial institutions' compliance with regulatory requirements. The authority's future focus includes strengthening early warning systems and developing more effective intervention mechanisms.