SWI FINMA published fully revised circular Liquidity - Insurers (Cir 2025/3) and it is thus adapting practices to the revised Supervisory Ordinance and completing actions.
SWI GVT revised Supervisory Ordinance (SVO) in 2023, introducing annual reporting by insurers on liquidity planning to FINMA, and adjustment came in force Jan. 1, 2024.
Also, liquidity within supervision had also had more international focus in recent years.
Against this background, SWI FINMA revised its circular 2013/5 Liquidity for insurers.
It has therefore completed supervisory practice on liquidity management and liquidity risk management and had decided to divide it in six subject areas based on principles.
These are governance, with liquidity management and liquidity planning, and liquidity reserve, as well as liquidity risk management, with liquidity controlling and liquidity monitoring, in addition to the relevant emergency plans in the event of bottlenecks.
It also includes a section on the reporting requirements for insurers to SWI FINMA.
SWI FINMA had previously held a public hearing on this completely revised circular.
Effectiveness
The SWI FINMA Circular 2025/3 Liquidity – Insurers comes into force on Jan. 1, 2025.
