Swiss monetary market watchdog FINMA has revamped its organizational construction with rapid impact, the regulator mentioned on Tuesday, because it gears up for future challenges together with supervision of the enlarged UBS.
Switzerland has pledged to step up regulation of the banking sector since UBS purchased Credit score Suisse in an emergency takeover in 2023 when its outdated rival collapsed.
A parliamentary investigation in December forged an unflattering gentle on the regulator, which plans to introduce a brand new cross-divisional operate for built-in danger experience to work on matters like liquidity and capital.
In the meantime, a newly created FINMA Chief Danger Officer operate will coordinate danger administration processes within the enterprise divisions, FINMA mentioned in an announcement.
The brand new construction would “help extra intensified, direct supervision, particularly by permitting the authority to hold out extra of its personal on-site supervisory opinions,” FINMA mentioned.
CEO Stefan Walter mentioned the revamp promoted FINMA’s purpose of preventive supervision, including the regulator would proceed to observe establishments “in a risk-based and proportionate method.”
Walter, who joined FINMA in April 2024, has taken a hands-on strategy to financial institution regulation and referred to as for stronger powers for his company.
FINMA Director Marlene Amstad mentioned that by adapting its construction, FINMA was addressing future challenges.
“These embody not solely new realities within the banking sector, but additionally challenges for the complete Swiss monetary middle resembling non-financial dangers and conduct points, cash laundering and cybercrime,” Amstad mentioned.
The regulator additionally mentioned Birgit Rutishauser, deputy CEO and head of the insurance coverage division, would step down by April 30 to embark on a brand new profession. Her transfer was impartial of the organizational modifications, FINMA mentioned.
(Reporting by Ariane Luthi; modifying by Sonali Paul, Kirsten Donovan)
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