SWI FINMA Supervisory Relief Date

On May 19, SWI FINMA issued release on relief deadline change.

  • Supervisory notice 06/2020 on relief for supervised firms as a result of Covid-19 crisis.
  • Follows SWI FINMA Mar. 2020 issued notice on relief for banks in Covid, see #75261.
  • Follows SWI FINMA Apr. 2020 issued notice on supervision in Covid-19, see #75506.
  • Overview
  • In supervisory notice 02/2020 of Mar. 31, 2020 for banks affected by the pandemic and related effects on real economy SWI FINMA granted three reliefs until Jul. 1, 2020.
  • In view of current situation SWI FINMA is now adjusting deadlines for these facilities.
  • Leverage Ratio
  • Customers still have unusually high cash deposits with Swiss banks, relief in leverage ratio (with exception of CB balances) will be extended until Jan. 1, 2021 for all banks.
  • Dividend Distribution
  • In case of dividend distributions, relief stated in supervisory notice 03/2020 continues to apply, but it is not planned to continue beyond this deadline extension.
  • Risk Distribution
  • The relief in risk distribution area does not need continuation, it ends on Jul. 1, 2020.
  • Banks, can in individual cases, submit reasoned request for relief per art. 112.2 CAO.
  • Back Testing
  • The relief in area of back testing exceptions in form of freeze of exceptions to Feb. 1, 2020 will be adopted in future supervisory notice, there is no need to extend deadline.
  • Market Risk
  • Re margin 332 in circular 08/20 on market risks, banks can disregard individual exceptions if institution can demonstrate these exceptions are not due to lack of accuracy (forecast quality) in risk aggregation model.
  • Most recent phase of market volatility increasingly led to exceptions where, in FINMA's opinion, disregarding capital calculation was justified, therefore, the content of this relief is effective until Jul. 1, 2020.
  • Covid-19 Loans and Financing Rate (NSFR)
  • For funding rate, term of SWI CB Covid-19 refinancing facility (CRF) related loan without considering termination option of SWI CB can be regarded as identical to term of claim assigned as security, accordingly, the value 100 % can currently be used.
  • For available stable financing (ASF factor), assigned claim recorded as encumbered for same term, 3/3 which currently requires a stable funding (RSF factor) of 100%.

Regulators SWI FINMA
Entity Types Auditor; B/D; Bank; BHC; Corp; IA; Inv Co
Reference Com 06/2020, 5/19/2020; LCR; NSFR; COVID-19
Functions Compliance; Financial; Legal; Operations; Registration; Reporting; Risk; Treasury
Countries Switzerland
Products Banking; Corporate; Equity; Fund Mgt; Loan; Securities
Regions EMEA
Rule Type Guidance
Rule Date 5/19/2020
Effective Date 7/1/2020
Rule Id 78117
Linked to Rule :75261
Reg. Last Update 5/19/2020
Report Section EU

Last substantive update on 05/21/2020