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FINMA: The Swiss Financial Regulator and Its Role in Market Oversight

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FINMA: The Swiss Financial Regulator and Its Role in Market Oversight

Dari Podhur, Counsel

24 February, 2025

FINMA (Swiss Financial Market Supervisory Authority): An Overview

FINMA (Swiss Financial Market Supervisory Authority (FINMA)) is the Swiss authority responsible for overseeing the country’s financial market. This FINMA regulator ensures stability, transparency, and reliability in the financial system and safeguards the interests of investors and clients.

Main Tasks and Functions of FINMA

FINMA Switzerland regulates and monitors companies that provide financial services. It enforces compliance with anti-money laundering (AML) laws and counter-terrorism financing regulations, as well as addressing financial risks and abuses.

The regulator performs several key functions:

Issues licenses and permits to financial organizations.
Supervises banks, insurance companies, investment funds, and financial intermediaries.
Develops and implements regulations to ensure market transparency.
Imposes sanctions in case of violations of financial legislation.

FINMA

Alex explain the main FINMA tasks

Who Does FINMA Regulate?

Under the oversight of FINMA (the swiss financial market supervisory authority (FINMA)), the following fall within its purview:

Banks and investment companies
Insurance firms and their branches
Foreign financial institutions operating in Switzerland
Companies that engage in financial intermediation
Financial institutions working with digital assets
FINMA plays a crucial role in maintaining trust in the Swiss financial market by ensuring its security and compliance with international standards. This is why what is FINMA often comes up as a key question for anyone dealing with Swiss finance.

Regulated Organizations and Licensing

Which Companies Come Under FINMA Regulation?

FINMA regulated entities are those companies and institutions required to meet the requirements of the Swiss Financial Market Supervisory Authority (FINMA). These include:

Banks and investment companies – organizations that accept deposits, grant loans, and manage client assets.
Insurance companies – both local insurers and branches of foreign insurance providers.
Financial intermediaries (KKV FINMA) – entities involved in asset management, investment consulting, and the purchase or sale of financial instruments.
Funds and asset managers – investment companies and hedge funds operating in Switzerland.
Payment systems and fintech companies – platforms offering financial technology, e-wallets, and cryptocurrency services.
Trading platforms and exchanges – venues for trading securities, cryptocurrencies, and derivatives.

How to Obtain a FINMA License?

Any organization planning to operate in the Swiss financial sector must go through the licensing process with FINMA Switzerland. This is a mandatory requirement that ensures the company’s compliance with legal norms and client protection.

The FINMA license process involves:

Document preparation – submission of an application, business plan, and information on the company’s financial stability.
Verification of regulatory requirements – proof of sufficient capital, proper governance structure, and robust internal controls.
Audit and legal review – an independent check to confirm the company meets regulatory standards.
Approval and listing in the FINMA register as a licensed organization.

If you're preparing to launch your business in the Swiss financial sector, make sure you're also familiar with the process of Registering a Company in Switzerland, which often goes hand-in-hand with licensing.

Categories of FINMA Licenses

FINMA issues various licenses depending on the type of activity:

Banking license – for credit institutions and deposit-takers.
Insurance license – for companies providing insurance services.
Financial intermediary license (KKV FINMA) – for asset managers, investment companies, and financial advisors.
Investment fund management license – for fund-related and venture capital entities.
Fintech license – for payment platforms, crypto services, and blockchain projects.

Obtaining a FINMA license confirms a company’s reliability and grants it the right to operate lawfully in Switzerland.

Adam Abdellaoui

Off-Counsel

info@goldblum.ch

+41 (44) 5152530

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Public FINMA Register and Searching for Information

What Is the FINMA Register?

The FINMA register is an official directory containing information about all companies and organizations supervised by the Swiss Financial Market Supervisory Authority (FINMA). This tool allows you to verify the legitimacy of financial institutions and their compliance with Swiss law.

The register provides data on:

Licensed banks, insurance companies, and investment funds
Financial intermediaries and asset managers (KKV FINMA)
Fintech companies, cryptocurrency exchanges, and payment systems
Self-regulatory organizations (SROs) under FINMA oversight

How to Use FINMA Search?

The FINMA search function makes it quick and easy to find the desired organizations based on:

Company name – for instance, you can check banks such as FINMA Credit Suisse or FINMA UBS.
License category – banking, insurance, investment, intermediary, etc.
Type of regulation – direct oversight by FINMA or via an SRO.
Registration number – the unique identifier in FINMA’s system.
This tool helps investors, clients, and partners confirm the reliability of a financial organization before starting any business dealings.

FINMA List of Regulated Entities: How to Verify a Company?

The FINMA list of regulated entities is a comprehensive listing of all organizations holding a FINMA license. Checking a company in this list lets you confirm its legal status.

Advantages of using this list:

Minimizing the risk of dealing with fraudulent structures
Confirming the status of a licensed organization
Access to up-to-date information on financial intermediaries

If a company is not in the register, it might mean it lacks a license and operates outside the legal framework. In some cases, this could also indicate a pending or completed deregistration. Learn more about such scenarios in Company Status Strike-Off Explained. In such a case, it is advisable to contact FINMA for additional verification.

The official FINMA register is a vital tool for maintaining financial market transparency. Using FINMA search and the FINMA list of regulated entities allows clients, partners, and investors to check companies, reduce risk, and avoid scams.

Get in touch

Please contact us directly or via email if you require assistance. We are here to help you move forward.

Oversight of Major Banks (Credit Suisse, UBS, and Others)

How Does FINMA Regulate Switzerland’s Major Banks?

FINMA Switzerland plays a key role in supervising the country’s largest financial institutions, such as Credit Suisse, UBS, and other systemically important banks. These banks influence not only the Swiss market but also the global financial system, making their regulation a top priority.

FINMA’s main tasks in overseeing major banks include:

Ensuring financial stability and preventing crises
Monitoring banks’ capitalization and liquidity levels
Overseeing compliance with AML and sanctions requirements
Reviewing investment strategies and risk management
Responding to crises and restructuring banks if needed

FINMA Credit Suisse: Regulation and Crisis

In recent years, Credit Suisse has faced several financial scandals and losses, leading to heightened scrutiny by FINMA. The regulator launched investigations and implemented measures to avert further issues, such as:

Mandating increased capital and improved risk management
Investigating high-risk client transactions
Monitoring compliance with international sanctions
The Credit Suisse crisis illustrates how FINMA acts when there is a threat to a bank’s financial stability.

FINMA UBS: Supervision of Switzerland’s Largest Bank

UBS is the country’s biggest bank and a global leader in private banking. FINMA UBS ensures that the bank complies with:

Capital adequacy requirements (Basel III)
Anti-money laundering policies
Regulations in asset management and investment banking
After UBS acquired Credit Suisse, FINMA intensified its oversight to mitigate systemic risks affecting both the Swiss and international financial markets.

How Does FINMA Respond to Crises in the Banking Sector?

In case of financial trouble at large banks, FINMA has the authority to:

Temporarily restrict operations and payouts
Demand restructuring or changes in management
Impose sanctions on executives for regulatory violations
Hold banks accountable for AML and other financial compliance breaches
FINMA’s supervision of Credit Suisse, UBS, and other major banks prevents financial crises and fosters resilience in the Swiss banking sector.

Warning Lists and Regulatory Measures

What Is the FINMA Warning List?

The FINMA warning list is an official roster of companies whose activities arouse suspicion at the Swiss Financial Market Supervisory Authority (FINMA). Appearance on this list does not necessarily mean the company is breaking the law, but it does indicate a lack of FINMA licensing or potential risks for clients and investors.

Reasons for inclusion in the FINMA warning list may include:

A company claiming to be regulated by FINMA without actually having a license
Suspicion of illegal financial activities or regulatory breaches
Customer complaints about fraudulent schemes or financial manipulations
A company’s refusal to cooperate with FINMA during investigations

How to Check a Company Against the FINMA Warning List?

Any investor or client can use FINMA search or the FINMA register to ensure the company:

Is not on the warning list
Is officially licensed and regulated by FINMA
Holds the appropriate license for operating in Switzerland
If the company appears on the FINMA warning list, exercise caution and request further information before making any investments.

What Does FINMA Do in Case of Violations?

If an organization engages in illegal financial activities, FINMA can:

Prohibit it from offering services in Switzerland
Freeze accounts and assets obtained unlawfully
Demand liquidation or revoke the company’s license
Prosecute the company’s leadership

To secure transactions when dealing with high-risk entities or during investigations, companies often use Swiss Escrow Account Services to hold funds safely until regulatory clearance is obtained.

How to Avoid Fraudsters?

To steer clear of illegal schemes, you should:

Verify the company via the FINMA list of regulated entities
Steer clear of entities promoting guaranteed returns with no risk
Check whether the official FINMA logo is displayed on the company’s site
Beware of offers from firms on the FINMA warning list

The FINMA warning list is a crucial tool for protecting investors and clients against fraudulent schemes. Using FINMA search and the FINMA register helps you avoid risks and engage only with licensed firms.

Why Is It Important to Work with FINMA-Regulated Entities?

Opting for FINMA-regulated entities guarantees reliability and safety for clients, investors, and partners. Companies supervised by the Swiss Financial Market Supervisory Authority FINMA adhere to stringent Swiss legal requirements, thereby minimizing both financial and legal risks.

Key benefits of working with organizations licensed by FINMA Switzerland:

Transparency – stringent oversight of operations and mandatory financial reporting
Security – protection of investors from scams and financial misconduct
AML compliance – adherence to regulations on anti-money laundering
Client protection – upholding high ethical and compliance standards

How to Avoid Fraud in the Financial Market?

When selecting a financial partner, it is crucial to:

Verify the company in the FINMA register – ensure it holds a valid license and is regulated
Avoid firms listed on the FINMA warning list – they may be operating unlawfully
Analyze the terms of cooperation – suspiciously generous offers often signal fraud
Check for the presence of the FINMA logo and confirm the firm meets regulatory standards

The Future of Financial Market Regulation in Switzerland

FINMA continues to evolve in response to global financial developments, focusing on:

Regulating fintech companies and cryptocurrency services
Tightening supervision of international financial flows
Maintaining the resilience of the banking sector after the UBS–Credit Suisse merger
Introducing new anti-money laundering and financial crime prevention measures

These developments often intersect with evolving tax policies, which are outlined in the Swiss Tax System Overview to help businesses stay compliant and optimized.

FINMA remains one of the world’s most stringent financial regulators, ensuring transparency and safety in the Swiss market. Verifying licenses, partnering with reliable companies, and complying with FINMA Switzerland requirements are key steps to safeguarding assets and conducting successful business in the financial sphere.

Need to set up a company in Switzerland, take over an existing business, or optimize your taxes? Contact our specialists in company registration and Swiss tax law.

Contact Us

By preserving high standards of transparency and reliability, FINMA (the swiss financial market supervisory authority (finma)) fosters confidence among investors, companies, and global partners. Whether you are dealing with major banks like FINMA UBS or FINMA Credit Suisse, or exploring emerging fintech ventures, understanding the role of FINMA regulator is indispensable for navigating the Swiss financial landscape safely and effectively.

Questions and Answers

FINMA (Swiss Financial Market Supervisory Authority) is Switzerland’s financial regulator, responsible for supervising banks, insurance companies, investment funds, and financial intermediaries. Its main goal is to ensure financial market stability, protect clients, and combat financial crime.

Legal disclaimer. This article does not constitute legal advice and does not establish an attorney-client relationship. The article should be used for informational purposes only.