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FINMA unveils strategy for 2017-20

Chris Hamblin, Editor, London, 29 November 2016

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The Swiss Financial Market Supervisory Authority, FINMA, has produced a skimpy document outlining its goals for the next four years in the vaguest of terms.

Goal 1 says that FINMA will ensure that banks and insurance companies have a strong capitalisation. For goal 2, FINMA promises to make a sustainable positive impact on the conduct of financial institutions, especially when it is trying to prevent money laundering. Goal 3 states that it will offset the “too big to fail” problem further, using viable emergency plans and credible resolution strategies. Goal 4 states that by 'accompanying' structural change in the financial industry, FINMA will contribute to systemic stability and the protection of creditors and insured persons. Goal 5 contains FINMA’s wish to push for the removal of unnecessary regulatory obstacles in the way of innovative business models. Goal 6 reaffirms the regulator's commitment to principle-based financial market regulation and the promotion of 'equivalence' with relevant international requirements. Goal 7 states that in principle, the cost of supervision will only rise if FINMA's remit is expanded. Further efficiency gains are achievable through the strict application of risk-based supervision approaches and clear prioritisation both in-house and in the regulatory audit process. FINMA takes, on average, only 112 words to describe each goal.

In this document FINMA notes that banks are facing a paradigm shift in cross-border private banking, citing weaknesses in money laundering prevention and instances of misconduct as the worst problems. It warns: "As one of the world's leading centres for private wealth management, it is vital that Switzerland maintains the integrity of its financial system."

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