Government supervision of the financial centre
The financial centre has been one of the most highly regulated sectors for decades.In Switzerland, one single authority is responsible for overseeing the banks, insurance companies, stock exchanges, broker-dealers and other financial intermediaries. That authority is the Swiss Financial Market Supervisory Authority FINMA based in Berne.
Switzerland’s central bank, the Swiss National Bank (SNB), does not perform a direct supervisory function with respect to the individual financial market players. However, as an independent institution, the SNB is responsible for the overall stability of the system in the financial centre. FINMA and the SNB cooperate closely.
Banks, securities brokers and collective investments
Banks, securities brokers and asset managers dealing with collective investments must adhere to the requirements set out in the Federal Banking Act, the Federal Act on Stock Exchanges and Securities Trading, and the Federal Act on Collective Investment Schemes, which are further defined in the regulations issued by FINMA. Some activities are subject to self-regulation, which is carried out by the Swiss Bankers Association (Swissbanking); this body issues a code of conduct and recommendations. Supervision is primarily performed by FINMA-approved auditing companies, and secondarily by FINMA itself.
Self-regulation of the fund industry falls within the remit of the Swiss Funds Association (SFA).
Stock exchanges
The Federal Act on Stock Exchanges and Securities Trading stipulates self-regulation for the stock exchanges. The Swiss Financial Market Supervisory Authority (FINMA) has overall supervision and may intervene in self-regulation. The most important stock exchange is the SIX Swiss Exchange domiciled in Zurich. It issues regulations for listed companies and stock market participants. It also monitors stock exchange trading and publishes market information.
Insurance companies
Insurance companies must comply with the requirements stipulated by the Federal Act on Insurance Supervision and the Federal Act on Insurance Contracts, for which FINMA has issued supplementary execution standards. The insurance companies are supervised by FINMA.
Insurance brokers
Insurance broker must register with FINMA and are subject to FINMA supervision.
Combating money laundering
Measures to combat money laundering and the financing of terrorism are laid down in the Anti Money Laundering Act (AMLA). Besides direct supervision by FINMA, indirect supervision by way of a self-regulation organisation (SRO) is possible. The activities of these organisations are monitored by FINMA. Various associations have set up recognised SROs.
Asset Managers
Asset managers without bank status (also known as independent asset managers) and trustees must apply for a FINMA license by the end of 2022 and prove that they are affiliated with a FINMA-authorised supervisory organisation (SO) in return (e.g. licensing process Finma and Swiss Association of Asset Managers SAAM).