Swiss senator seeks review of FINMA’s risk-based supervision

Swiss senator Fabio Regazzi has filed a motion asking the federal government to review how the country’s financial regulator, FINMA, supervises firms.

He wants the government to report on whether supervision can better reflect the different business models and risks of banks, insurers, securities traders and asset managers.

The motion also asks whether a loss of public confidence can affect all financial sectors in the same way, and how the system involving oversight bodies and audit firms could develop.

Regazzi says smaller financial firms outside banking face high costs and that asset managers and insurance brokers can face overlapping oversight.

The debate follows the collapse of Credit Suisse and discussion of stronger powers for FINMA, including fines and greater public communication about enforcement.

FINMA says its supervision is already risk-based and proportionate, with its approach shaped by each firm’s size, complexity, business model and risk profile.

The government will respond before the Senate decides whether to approve the motion, which would require it to produce a report.