FINMA Highlights Improvements in UBS Crisis Plan, Calls for Further Measures

Switzerland’s financial market regulator FINMA said UBS has advanced its crisis planning, but authorities still need more options to manage a potential emergency at the bank.

FINMA noted improvements in UBS’s ability to restructure or wind up operations since the government-engineered takeover of Credit Suisse in March 2023. The bank’s emergency plan, outlining how systemically important functions would continue if recovery efforts fail, meets current statutory requirements but is not yet fully integrated into the resolution plan, making it not fully executable. FINMA highlighted the need for greater optionality for authorities, requiring legislative changes. UBS stated it meets current resolution requirements and that the Swiss emergency plan would act as an additional safeguard in extreme scenarios. The plan aims to ensure continuity and protect systemically important functions in Switzerland.