FINMA is Switzerland’s independent financial-markets regulator. Its mandate is to supervise banks, insurance companies, financial institutions, collective investment schemes, and their asset managers and fund management companies. It also regulates insurance intermediaries. It is charged with protecting creditors, investors and policyholders. FINMA is responsible for ensuring that Switzerland’s financial markets function effectively.
When FINMA commenced its activities on 1 January 2009, the Swiss parliament granted it a greater degree of independence than its threepredecessor institutions. The institutional, functional and financial independence FINMA enjoys enables it to exercise effective supervision over Switzerland’s financial industry.
Institutional independence
To ensure its institutional independence, FINMA was established as a public law institution in its own right. It is governed by a board of directors and managed by an executive board. This greater autonomy places more stringent requirements on FINMA’s management structures and the checks and balances underpinning them. Strongcorporate governanceis a key prerequisite for a credible, independent supervisory authority.
Functional independence
Because FINMA is functionally independent of Switzerland’s political authorities, neither Swiss Parliament nor the government can issue directives on how it carries out its regulatory duties. While FINMA acts as an independent authority, it nevertheless forms part of Switzerland's political structures and the balancing and control mechanisms they incorporate. Most notably, it is subject to parliamentary scrutiny and must account to the parliamentary commissions overseeing its work.
Financial independence
FINMA is financed not by the taxpayer, but by the levies and fees it charges for its supervisory work. In addition, the institutions FINMA regulates are required to pay an annual levy to cover the costs incurred by FINMA which are not met by the fees. The levies relate to supervision and other FINMA services. FINMA's accounts are audited by the Swiss Federal Audit Office.
Mandate and tasks
FINMA is mandated to protect financial market clients – creditors, investors and policyholders – and is responsible for ensuring that Switzerland’s financial markets function effectively. Its supervisory tasks -authorisation,supervisionand, where necessary, theenforcement of supervisory law– are derived from that mandate. In addition, FINMA can alsoregulateactivities where it is authorised to do so. In performing its supervisory activities, FINMA adopts a systematic risk-oriented approach and is mindful to ensure continuity and accountability. This strengthens confidence in the proper functioning, integrity, competitiveness and sustainabilityof Switzerland's financial centre.
Strategy and organisation
Based on legally defined tasks and objectives, FINMA’s Board of Directors draws up strategic goals, which it submits to the Federal Council for approval every four years. To enable it to achieve itsstrategic goals, FINMA has an appropriateorganisational structurewith a clear distinction between strategic management through theBoard of Directorsand operational management through theExecutive Board. The Board of Directors defines the strategic course, decides on transactions of substantial importance and oversees the Executive Board. Eightdivisionsensure that FINMA fulfils its mandate efficiently and uses its financial resources responsibly and effectively.
Deployment of third parties
In order to meet its goals, FINMA delegates part of its supervisory work toaudit firmsand alsoappoints agentswho are deployed on a case-by-case basis.
Cooperation in Switzerland and abroad
Finally, FINMA fostersnational cooperationand, on theinternational stage, it represents Switzerland and its principle-based regulatory approach in competent specialist committees. It also responds to requests for assistance from foreignsupervisory authorities.
Our topics
Supervisory objectives
Organisation
Working at FINMA
Activities
Auditing
FINMA mandataries
National cooperation
International activities
