FINMA, an acronym for the Swiss Financial Market Supervisory Authority (Autorité fédérale de surveillance des marchés financiers), is the regulatory body in Switzerland responsible for supervising and overseeing the financial market activities within the country.
As the primary financial regulatory authority, FINMA's primary objective is to ensure the stability and integrity of the Swiss financial system, as well as to protect the interests of investors, creditors, and policyholders. This includes monitoring and supervising banks, insurance companies, securities dealers, stock exchanges, and collective investment schemes to ensure compliance with Swiss financial laws and regulations.
Additionally, FINMA plays a crucial role in maintaining the smooth functioning of the financial markets by addressing potential risks and threats. It has the authority to enforce disciplinary measures, issue licenses, grant permissions, and even liquidate financial institutions if necessary.
Established in 2009, FINMA operates with a dual mandate of prudential supervision and financial market conduct supervision. This involves conducting comprehensive risk assessments, monitoring and evaluating market activities, conducting investigations, and imposing penalties or sanctions for any misconduct or violation of financial regulations.
FINMA also collaborates with other international regulatory bodies and organizations, ensuring alignment with global standards and promoting international cooperation in the supervision of cross-border financial activities. Its mission is to create an environment that fosters trust, transparency, and stability in the Swiss financial market, thereby contributing to the overall economic well-being of Switzerland.
