Swiss regulator launches ‘simplified’ regime for smaller banks
10 Aug 2018

Switzerland’s Financial Market Supervisory Authority (Finma) has rolled out what it said is a ‘less complex’ regulatory regime for small banks, which will also include changes to the risk-oriented focus of regulatory audits they undergo.

The new plans will be initially implemented as part of a pilot project.

Participating institutions must have high levels of capital and liquidity, Finma explained, and in return, they will be subject to a ‘substantially less complex’ regulatory regime.

“Institutions participating in the regime enjoy significantly reduced requirements. They do not, for example, have to calculate a range of key regulatory figures e.g. risk-weighted assets and the net stable funding ratio, and disclosure requirements are reduced to a minimum.”

“Further simplifications will apply to the qualitative requirements for operational risks, outsourcing and corporate governance. The regime does not, however, contain any relaxation of business conduct rules.”

There will also be fewer but ‘more intensive’ regulatory audits.

“Small institutions without observable increased risks will also have the opportunity to request two or three yearly audits instead of the current annual audits. To make the audits more meaningful, it will also be possible to take random samples on a risk-oriented basis instead of comprehensively,” the watchdog explained.

Count reading this article to your CPD minutes, by signing up to our CPD Wallet

FREE CPD Wallet
Must Read

‘The investigations exposed outrageous misconduct at U.S. banks and flaws in American law’

In an extract from her new book, senior US lawyer Elise J. Bean hits on some pretty hot issues concerning money laundering, just one aspect of her rich and entertaining story. Duffle bags of cash. Corrupt dictators and their money-grubbing relatives. Sleazy offshore banks. Shell companies. Drug… Read More

Bearing witness to financial crime, across party lines

If it seems like an odd recipe for financial oversight, it’s also a surprisingly effective one: take five to ten congressional staffers, exile them to a squalid basement office with “hard-boiled” charm in the U.S. Senate’s oldest building, give them access to subpoena powers and a seemingly endless series of… Read More