SWI FINMA Consolidated Supervision


On Sep. 2, SWI FINMA issued draft circular on supervision of groups.


  • SWI FINMA issued consultation on a new circular which sets out its supervisory practice on consolidated supervision, in order to increase transparency in this area.
  • Circular is entitled, Consolidated supervision of financial groups under the Banking Act and the FinIA, SWI FINMA is now seeking stakeholder views on its content.
  • Background
  • Primary purpose of consolidated supervision is to ensure that all risks entered into by a financial group are covered by supervision, is a key element of prudential supervision.
  • SWI FINMA has many years of established supervisory practice re consolidated supervision under the Banking Act (BankG) and the Financial Institutions Act (FinIA).
  • Up till now, supervisory practice has been communicated to the institutions concerned in the form of case-by-case decisions, SWI FINMA now wishes to clarify its practices.
  • Circular
  • Set outs established practice on consolidated supervision of financial groups.
  • Specifies criteria for consolidated supervision, regulatory scope of consolidation and the rules applicable throughout the group in the context of BankG and FinIA.
  • Specific implications of consolidated supervision are based on provisions of Banking Ordinance, requirements in circular can be grouped according to quantitative and qualitative elements, latter includes elements of corporate governance at group level.
  • Through publishing details of its practice, SWI FINMA is providing greater clarity on questions of interpretation regarding scope and content of consolidated supervision.
  • Effectiveness
  • The closing date for submission of responses to the consultation is Nov. 1, 2024.
  • SWI FINMA intends that the new circular should enter into force in mid-2025.

Regulators SWI FINMA
Entity Types Auditor; B/D; Bank; BHC; IA; Inv Co
Reference CP, PR, 9/2/2024; FinIA; BankG
Functions Compliance; C-Suite; Exams; Legal; Market Conduct; Operations; Registration/Licensing; Reporting
Countries Switzerland
Category National Regulator
State
Products Banking; Corporate; Fund Mgt; Securities
Regions EMEA
Rule Type Proposed
Rule Date 9/2/2024
Effective Date 11/1/2024
Rule Id 224572
Linked to N/A
Reg. Last Update 9/2/2024
Report Section EU

Last substantive update on 09/04/2024