On Jun. 14, SWI FINMA issued guidance on reporting on transactions.
SWI FINMA issued a new guide on annual reporting of insurance companies concerning transactions connected with insurance business, or unrelated to an insurance business.
Guide Overview
Guide is intended as a tool to facilitate reporting, but does not establish a legal claim.
The guide provides information on future report to be submitted to SWI FINMA on the compliance with the provisions of the new Art. 5b and 5c of the Supervision Ordinance. transactions, regardless of whether they are related to the insurance business or not.
Revision of Act on Supervision of Insurance Companies (ISA) and the Ordinance on the Supervision of Private Insurance Companies (AVO), means transactions in Art. 5b and 5c AVO, must be the subject of an annual report that is to be submitted to SWI FINMA.
This applies regardless of if they are related to insurance business or not in accordance with Art. 25 of ISA, and in conjunction with Art. 11 of ISA. Art. 25 para. 2 sentence 2.
The reporting in accordance with Art. 5b and 5c ISO enables SWI FINMA to assess the materiality of all of these transaction types, within the meaning of Art. 5b and 5c AVO.
Guide is intended to inform insurance companies supervised by SWI FINMA, including branches, about framework of reporting under Art. 5b and 5c AVP, and related topics.
However, all of the insurance special purpose vehicles, within the meaning of Art. 30e VAG, are exempt from this reporting obligation, according to Art. 111d Para. 1 of AVO.
The guide covers consideration of business conducted alongside the insurance business in SST, a framework of reporting according to Art. 5b and 5c AVO, topics of reporting according to Art. 5b and 5c AVO, as well as defining required quantitative information.
Effectiveness
The various transactions referred to in the AVO must always then be submitted to SWI FINMA on Apr. 30, starting from Apr. 30, 2025, applicable for the 2024 financial year.
