In the Shadow of Lex UBS: Finma's Authority to Impose Fines?
On Friday, the Federal Council presented the key points of its legislative plans for banking regulation. An old acquaintance also makes a reappearance: Finma's authority to impose fines.
When Finance Minister Karin Keller-Sutter presented the Federal Council and authorities' ideas for adapting banking regulation to the media, almost all eyes were on the issue of capital adequacy, which is central to UBS.
One of the 28 measures received little attention, namely the introduction of «Finma's authority to impose pecuniary administrative sanctions on legal entities». In other words, the financial market supervisory has the power to impose fines.
Concerns Supervised Legal Entities
The measure «contributes to strengthening supervision» and is «an internationally standard instrument», according to the explanations in the key values paper.
According to the Federal Council's ideas, the new sanction option is to be established for «supervised financial institutions (legal entities).» However, this term has not yet been defined in more detail.
Foreign Countries as a Guideline
At the media conference, FINMA President Marlene Amstad said that the question had to be asked: «How appropriate is it that only the foreign authorities have the authority to impose fines and we do not?»
Amstad left open for the time being the financial amount up to which this authority should extend. The quantification is a question of implementation and design. The means must be «proportionate», but «sufficiently dissuasive».
Still a Long Way to Go
Keller-Sutter agreed with this: The point is to give the Swiss supervisory authority the same tools as its international peers.
Like all plans presented on Friday, this one is also subject to the results of consultations and parliamentary deliberations.
