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Business
Swiss government proposes two revisions for systemically important banks
Herz — Business Desk · · 30s summary · 1 min read
The essentials
Switzerland’s Federal Council is opening consultations on Wednesday on two changes affecting banks deemed too big to fail. The proposals amend the Banking Act and the Liquidity Ordinance. They would impose a duty of care on executives, allow fines and bonus clawbacks, remove incentives to take inappropriate risks and broaden the tools available to the Swiss Financial Market Supervisory Authority, known as Finma. The package is due to go before Parliament in 2027. Its presentation coincides with the start of a separate parliamentary debate on strengthening UBS’s capital requirements.
- Two regulatory amendments open for consultation on Wednesday.
- The proposals include a duty of care, fines and bonus clawbacks.
- Finma would receive broader supervisory tools.
- The package is due to be submitted to Parliament in 2027.
What the Federal Council is proposing
Switzerland’s Federal Council is opening consultations on Wednesday on two regulatory amendments for banks considered too big to fail, according to Le Temps.
The term refers to institutions whose collapse would have systemic consequences for the economy. One revision concerns the Banking Act and the other the Liquidity Ordinance.
The measures are intended to increase the accountability of executives at major banks by imposing a duty of care.
The proposed framework would allow fines and bonus clawbacks. It also seeks to remove incentives to take inappropriate risks.
Broader powers for the financial supervisor
The project would broaden the instruments available to Finma, Switzerland’s federal financial-market supervisor, which oversees banks and other financial intermediaries.
Political timetable
- WednesdayThe Federal Council opens consultations on the two regulatory amendments.
- 2027The package is due to be submitted to Parliament.
The proposals are being presented as Parliament begins debating stronger capital requirements for UBS.
The debate over UBS’s capital requirements and the two regulatory revisions are separate processes taking place at the same time.
Measures included in the package
The package combines several measures: a duty of care, fines, bonus clawbacks and the removal of incentives to take inappropriate risks.
It would also expand the supervisory instruments available to Finma.
Frequently asked questions
Which rules are being put out for consultation?
One amendment concerns the Banking Act and the other the Liquidity Ordinance.
Which measures apply to bank executives?
The proposals include a duty of care, fines and bonus clawbacks.
When will Parliament receive the package?
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