Swiss Regulator FINMA May Gain Power To Fine Banks Under New Proposal

The Swiss government has proposed legal reforms to strengthen FINMA, the country’s financial market regulator, including the power to fine banks and enforce accountability among senior executives.

The proposal introduces a senior managers regime that would allow for bonus clawbacks in cases of misconduct. FINMA welcomed the move, stating that the measures would help reduce the risk of financial crises. The regulator has been pushing for greater authority since the collapse of Credit Suisse in 2023. It also supported the proposal requiring banks to enhance recovery and resolution planning. FINMA said the expanded crisis tools would enable it to order corrective measures when deficiencies are found.

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