Swiss Financial Market Supervisory Authority (FINMA)

Basic Information

The Swiss Financial Market Supervisory Authority (FINMA) is Switzerland’s independent financial regulator, overseeing banks, insurance companies, exchanges, securities dealers, collective investment schemes, and other financial intermediaries. Established in 2007, it operates under the Federal Act on the Swiss Financial Market Supervisory Authority (FINMASA) and is headquartered in Bern. FINMA’s primary mandate is to protect creditors, investors, and policyholders while ensuring the stability and integrity of Switzerland’s financial markets.

Historical Background

FINMA was formed on 22 June 2007 through the merger of three predecessor institutions: the Swiss Federal Banking Commission (EBK-CFB), the Federal Office of Private Insurance (FOPI), and the Anti-Money Laundering Control Authority. The Swiss Federal Banking Commission, established in 1934, initially handled banking supervision but had limited resources until the late 1980s. The consolidation into FINMA strengthened Switzerland’s financial oversight framework, providing unified supervision across banking, insurance, and securities sectors. Since its inception, FINMA has played a key role in high-profile cases, such as the UBS tax dispute with the U.S. in 2009.

Legal Authority and Regulatory Framework

FINMA operates under Swiss federal law, including the Banking Act, Insurance Supervision Act, and Anti-Money Laundering Act. It has the authority to issue licenses, conduct audits, enforce compliance, and impose sanctions such as license revocation or liquidation of non-compliant firms. Unlike some regulators, FINMA cannot impose criminal fines but can confiscate illicit profits and restrict professional activities. It also collaborates with international bodies to combat financial crimes like money laundering and terrorist financing.

Core Responsibilities and Supervisory Scope

FINMA’s key functions include:

• Licensing: Authorizing financial institutions, including fintech firms under a specialized “FinTech license” introduced in 2019.
• Supervision: Monitoring compliance with laws and regulations through risk-based audits, particularly focusing on AML/CFT measures.
• Enforcement: Investigating violations and taking corrective actions, such as confiscating profits or revoking licenses.
• Regulation: Issuing guidelines and ordinances to clarify legal requirements, including recent updates on outsourcing risks and digital assets.

FINMA also supervises Switzerland’s growing digital economy, including blockchain and cryptocurrency projects, under a principles-based regulatory approach.

Contact Information

Headquarters:
FINMA
Laupenstrasse 27
3003 Bern, Switzerland

Zurich Office:
FINMA
Wasserwerkstrasse 12
Zurich, Switzerland

Phone: +41 31 327 91 00
Email: [email protected]
Website: www.finma.ch

How to Verify a FINMA-Regulated Entity

To confirm whether a financial institution is supervised by FINMA:

1. Visit FINMA’s official website and navigate to the “Supervised Institutions” section.
2. Search the entity’s name or license number in the publicly available register.
3. Cross-check details such as legal status, authorized activities, and any enforcement actions.

FINMA also publishes warnings about unauthorized firms and updates its list of licensed fintech companies periodically.