FINMA's supervisory and regulatory activities
A structured overview of FINMA's competencies: licensing, supervision, enforcement and international cooperation safeguarding the Swiss financial centre.
Introduction
FINMA is Switzerland's independent financial-markets supervisory authority. It licenses and supervises banks, insurance companies, stock exchanges, securities dealers and other financial intermediaries.
Through a risk-based and proportionate approach, FINMA protects creditors, investors and policyholders while ensuring the proper functioning and stability of the Swiss financial system.
Licensing and market access
FINMA grants the licences required to operate in Swiss financial markets, verifying that institutions meet all legal and organisational requirements.
Banking licences
Reviews capital, organisational and governance requirements before granting banking licences.
Insurance authorisation
Examines business plans, technical reserves and risk-management structures of insurance companies.
Fintech operators
Issues specific licences for fintech operators and innovative financial service providers, promoting regulated market access.
Collective investments
Authorises investment funds, asset managers and fund management companies, ensuring protection for retail and institutional investors.
Ongoing supervision
FINMA exercises continuous, risk-based supervision of licensed financial institutions, adjusting the intensity of controls according to systemic relevance.
Prudential supervision
Monitors the capital strength, liquidity and risk-management capabilities of supervised institutions.
Risk-based approach
Calibrates supervisory intensity according to each institution’s size, complexity and risk profile.
Audit firms
Relies on recognised audit firms that verify on-site compliance with regulations by supervised entities.
Supervisory ratings
Classifies institutions into risk categories, determining the level of attention and supervisory resources allocated.
Enforcement
FINMA has extensive powers to enforce financial market laws and intervene in cases of violations, irregularities or misconduct.
Enforcement proceedings
Initiates formal proceedings when financial market rules are violated, issuing binding decisions.
Precautionary measures and sanctions
Can impose precautionary measures, prohibit professional activity, revoke licences and order disgorgement of profits.
Unlicensed activity
Acts against individuals or entities offering financial services without the required licence, protecting the public and savers.
Insolvency and restructuring
Manages restructuring and bankruptcy proceedings for banks and insurance companies, protecting creditors and policyholders.
Regulation
FINMA drafts ordinances and circulars that specify and supplement legal provisions, setting technical standards and requirements for supervised entities.
FINMA ordinances
Issued under legislative delegation, they regulate in detail technical aspects such as capital requirements, reporting and risk controls.
Circulars
Describe FINMA’s supervisory practice and provide concrete guidance on how institutions must comply with the law.
Public consultations
Before issuing new rules, FINMA conducts public consultation procedures to gather feedback from operators and stakeholders.
International standards
Transposes and adapts international standards (Basel III, Solvency, IOSCO) to the Swiss context for global consistency.
Anti-money laundering and counter-terrorism financing
FINMA supervises compliance with due diligence obligations under anti-money laundering legislation and actively contributes to preventing financial crime.
Due diligence obligations
Verifies that financial intermediaries properly implement customer identification, transaction monitoring and suspicious activity reporting.
MROS reporting
Oversees the correct reporting of suspicious transactions to Switzerland’s Money Laundering Reporting Office.
Sanctions and lists
Monitors supervised institutions’ compliance with international sanctions and suspected-persons lists.
Authority cooperation
Collaborates with Swiss and international criminal authorities in combating financial crime and terrorism financing.
International cooperation
FINMA collaborates with foreign supervisory authorities and actively participates in the leading international financial regulatory forums.
International bodies
Actively participates in the Basel Committee, Financial Stability Board, IAIS and IOSCO, contributing to global standards.
Supervisory colleges
Coordinates supervision of cross-border banking and insurance groups through international supervisory colleges.
Information exchange
Exchanges information with foreign authorities based on memoranda of understanding and bilateral agreements, respecting confidentiality.
Regulatory equivalence
Contributes to equivalence-recognition processes for Swiss regulation, essential for access to international markets.
Conclusion
Through an integrated approach combining licensing, supervision, enforcement and international cooperation, FINMA ensures stable, transparent and resilient financial markets.
Its ongoing commitment protects creditors, investors and policyholders while promoting a modern, competitive and internationally recognised Swiss financial centre.
Supervision • Stability • Transparency