A portrait (FINMA)

Summary

• Switzerland's financial sector employs over 200,000 people and generates nearly ten per cent of the country's gross domestic product.p.3
• FINMA operates with approximately 500 people across Bern and Zurich with operating costs of approximately CHF 130 million in 2016.p.4
• FINMA supervises approximately 280 banks, 210 insurers, 5 systemically important banks, and around 8,000 foreign funds.p.5
• FINMA conducts more than 120 on-site supervisory reviews each year following a risk-oriented approach.p.7
• Within Switzerland, FINMA maintains ongoing information exchange with over 100 institutions and industry associations.p.11

Key insights

1. Effective and independent financial market supervision is crucial for maintaining trust in the Swiss financial sector.p.3
2. FINMA's primary mandate is to protect creditors, investors, and policyholders while ensuring that financial markets function properly.p.4
3. Licensing requirements and ongoing supervision intensity vary based on the specific type of financial activity and licence granted.p.5
4. Prudential supervision focuses on ensuring financial institutions remain adequately capitalised, liquid, and well-managed.p.6
5. FINMA categorises supervised institutions based on the risk they pose to creditors, investors, policyholders, and the financial system.p.7
6. Enforcement action is taken as a last resort to investigate illegal conduct, restore legal compliance, and send preventive market signals.p.8
7. Subordinate regulations are drafted by FINMA using a principle-based approach only when allowed by primary legislation.p.10
8. FINMA maintains institutional, functional, and financial independence, funding its operations via fees and levies on supervised institutions.p.12