FINMA - Swiss Financial Market Supervisory Authority is a Swiss financial markets regulatory body. It supervises the Swiss financial sector.
The FINMA – Swiss Financial Market Supervisory Authority is a Swiss independent financial market regulatory body. Its responsibilities include supervision of the banks, insurance companies, securities dealers, exchanges, asset managers, collective investment schemes, and fund management companies.
Moreover, it regulates distributors and insurance intermediaries. FINMA possesses the rights to protect the investor, creditors, and policyholders. FINMA is mandated to assure that Switzerland’s financial markets work properly. When FINMA started its activities on 1 January 2009, the parliament of the country has granted its great degree of independence. The regulator enjoys its institutional, functional and financial independence. All three enables the regulator to implement effective supervision over financial sector in Switzerland.
FINMA – Swiss Financial Market Supervisory Authority responsibilities
FINMA is responsible for the protection of financial market clients. These include bond holders, policyholders, and other investors. Moreover, the regulator is responsible for assuring Switzerland’s financial markets function properly.
Regulator’s supervisory tasks include authorization, supervision and the enforcement of the supervisory law. In addition, Swiss regulator is also able to maintain the activities where it is authorized to do so. While implementing its supervisory work, FINMA follows a systematic risk-oriented approach. Additionally, it is prepared to assure steadiness and responsibility. The combination of FINMA’s functions ensures the confidence in the proper functioning, competitiveness, and reliability.
FINMA’s Board of Directors
Swiss regulator’s Board of Directors is derived from the legally determined tasks and objectives. Moreover, the Board is setting up strategic goals, which is submitted to the Federal Council for approval every four years. To be able to achieve its strategic goals, FINMA possesses a suitable organizational structure with a clear distinction between management via the Board of Directors and operational management through the Executive Board.
Also, the Board of Directors determines the strategic development path, decides on transactions of high importance and monitors the Executive Board. The FINMA comprises eight divisions that assure the proper execution of the mandate and effectiveness of usage of its financial resources.