The Swiss Financial Market Supervisory Authority serves as the regulatory body for overseeing financial activities in Switzerland, operating independently.
FINMA is an autonomous institution headquartered in Bern, possessing its own legal status. It operates with institutional, functional, and financial autonomy separate from the central federal administration and the Federal Department of Finance.
Notably, FINMA reports directly to the Swiss parliament, ensuring accountability and transparency in its operations.
Licensing and Regulation
The FINMA is responsible for granting operating licences to companies and organisations under its supervision. It closely monitors these supervised institutions to ensure their compliance with the relevant laws, regulations, directives, and licensing conditions.
If necessary and within the bounds of the law, FINMA has the authority to impose sanctions, offer administrative assistance, and establish regulations. It actively participates in the revision of laws and corresponding ordinances, issues circulars, and, when authorised, creates its own ordinances.
The FINMA plays a crucial role in acknowledging appropriate self-regulation practices. It provides supervision in cases where there is a risk to creditors, investors, and policyholders, and has the power to penalise individuals or authorities.
The FINMA is also empowered to ensure compliance, issue warnings, revoke licence, and oversee the liquidation of companies.
Supervision and Compliance
By conducting continuous supervision, FINMA evaluates the financial well-being and risk profiles of the institutions it oversees. It closely monitors their operations to detect potential risks and vulnerabilities.
This proactive approach enables FINMA to implement preventive measures, such as imposing higher capital requirements or issuing targeted directives, in order to mitigate risks and uphold the stability of the market. Through its vigilant oversight, FINMA strives to safeguard the integrity and resilience of the financial system.
Conclusion
FINMA diligently assesses the financial health and risk profiles of supervised institutions, closely monitoring their activities to identify and address potential risks and vulnerabilities.
This proactive approach allows FINMA to take necessary measures, such as imposing additional capital requirements or issuing specific directives, to mitigate risks and maintain market stability.
By promoting compliance and overseeing the implementation of appropriate regulations, FINMA safeguards the interests of creditors, investors, and policyholders. With its authority to enforce sanctions and provide administrative assistance, FINMA acts as a robust regulatory body in Switzerland’s financial landscape.
