Government Supervision of the Financial Center
The financial center is one of the most highly regulated sector of the Swiss economy. In Switzerland, one single authority is responsible for overseeing the financial industry, banks, insurance companies, stock exchanges, broker-dealers and other financial intermediaries: the Federal Financial Market Supervisory Authority (FINMA), based in Berne.
Switzerland's central bank, the Swiss National Bank (SNB), does not perform a direct supervisory function in respect of the individual players on the financial market; as an independent institution, the SNB is nevertheless responsible for the overall stability of the system in the financial center. FINMA and the SNB cooperate closely.
Banks, Broker-dealers, and Collective Investments
Banks, broker-dealers, and asset managers handling collective investments must meet the requirements stipulated in the Federal Banking Act, the Federal Act on Stock Exchanges and Securities Trading, and the Federal Act on Collective Investment Schemes, as further defined in the regulations issued by FINMA. Certain activities are subject to self-regulation, which is carried out by the Swiss Bankers Association (Swissbanking); this body issues a code of conduct and recommendations. Supervision is primarily undertaken by audit companies approved by FINMA, and secondarily by FINMA itself.
Self-regulation in the funds sector is handled by the Swiss Funds Association (SFA).
Stock Exchanges
The Federal Act on Stock Exchanges and Securities Trading defines self-regulation for the stock exchanges. FINMA carries out overall supervision and may intervene in self-regulation. The main stock exchange is the SIX Swiss Exchange, domiciled in Zurich. It issues regulations for listed companies and stock market participants. It also monitors exchange trading and publishes market information.
Insurance Companies
insurance companies must meet the requirements stipulated by the Federal Act on Insurance Supervision and the Federal Act on Insurance Contracts, for which FINMA has issued supplementary execution standards. The insurance companies are supervised by FINMA.
Insurance Intermediaries
Insurance intermediaries are obliged to register with FINMA and are subject to supervision by it.
Combating Money Laundering
Measures to combat money laundering and the financing of terrorism are stipulated by the Anti Money Laundering Act (AMLA). As well as direct supervision by FINMA, indirect supervision by a self-regulation organization (SRO) is possible. The activities of these organizations are monitored by FINMA. Various associations have set up recognized SROs (more information).
Asset Managers
Asset managers not qualifying as banks (also known as independent asset managers) are not subject to special government supervision. However, rules of professional ethical conduct for the purpose of self-regulation are issued by their professional associations, the Swiss Association of Asset Managers (SAAM).