Strong financial market Oversight in Switzerland
With FINMA, the Swiss financial market is under the control of a powerful, knowledgeable, and independent supervisory authority. The FINMA started operating on January 1, 2009. The Swiss Federal Banking Commission (SFBC), the Federal Office of Private Insurance (FOPI), and the Anti-Money Laundering Control Authority (AMLCA), which were combined into FINMA, were its three predecessor institutions. To fulfil its sovereign duty of regulating the Swiss financial sector, FINMA is institutionally, functionally, and financially autonomous.
If banks, insurance companies, funds, and financial market infrastructures such as stock exchanges are well supervised and comply with the legal provisions, private individuals and companies at home and abroad gain confidence in the Swiss financial centre. Professional, trustworthy, and independent supervisory work is a mark of quality for the financial centre and Switzerland.
Around 500 employees work for FINMA at its headquarters in Bern and Zurich. The supervised parties finance the operation with around CHF 130 million (2016). FINMA is a relatively small authority by international standards due to the size and importance of the Swiss financial sector.
Actions that FINMA may take
Authorization, oversight, and, if required, enforcement of supervisory law are tasks that fall within the purview of FINMA.
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To ensure that monitored entities follow supervisory rules, it primarily serves as a supervisory authority.
Its operations include working with banks, insurance firms, stock exchanges, securities dealers, funds, and other financial intermediaries. FINMA grants licences and supervises players in the financial market, taking remedial action where necessary. Additionally, it is accountable for carrying out technical governance. It is the duty of FINMA to carry out legal responsibilities. In contrast, concerns and disagreements between the financial intermediary and the customer are handled by civil courts, or even criminal courts.
Ensuring that all members are financially sound and have enough money to pay losses in the case of a crisis scenario is the primary goal of continuing monitoring. The primary risks must also be understood in order to enable market discipline. But advisers who run into financial trouble or declare bankruptcy should leave the market gracefully and, if at all possible, without damaging their customers or the economy. FINMA concurs with this procedure in this instance.
In order to develop an open and transparent communication policy towards the numerous stakeholders and the general public, FINMA collaborates with more than 100 institutions and groups on a national basis. Through this discussion, supervisory and regulatory concerns will be better understood, and financial market difficulties will be brought to light.
In the global perspective, FINMA is regarded as a capable partner with strong enforcement powers.
It actively supports Swiss interests abroad by taking part in international organisations.
Therefore, FINMA serves as both a crucial component of a healthy local financial system and a significant ambassador for Switzerland abroad.
