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New FINMA Report: Risk Overview

Legal Counsel
December 10, 2019 | Legal News

New FINMA Report: Risk Overview

The Swiss Financial Market Supervisory Authority FINMA is publishing a risk monitor this year for the first timethis year. The FINMA used the report to identify the most important risks faced by the institutions it controls. And also to indicate problems that are in the focus of supervisory activities.

FINMA made the first publication of a new report - a risk review. It is dedicated to presenting the most important, from the FINMA point of view, the risk to the institutions under its control. It is planned that each of the subsequent reports will become a study of one of the selected trends that can affect the state of the Swiss financial market in the long term. The report will also determine what FINMA's supervisory activities will focus on based on the consideration of risks.
Six principal risks of the financial market
FINMA identified six principal risks for its supervised institutions and Switzerland, as a global financial center:
Sustainability of the environment with low-interest rates
The possibility of changes in the real estate market and mortgages, especially in the segment of investment real estate
Cyber-attacks;
A destabilizing change in LIBOR base interest rates
Laundering of money
Increased barriers to cross-border access to markets, especially to the EU
The report also contains a discussion of financial risks arising from climate change. FINMA defines this risk as one of the most important in the long run. FINMA's supervisory activities are not limited to the risks mentioned in the review. He has to deal with other more specific risks.
Swiss and UK trade agreement
Improving the transparency of financial oversight
FINMA focuses on financial sector supervision. They created the body to provide a stable perspective for the activities of controlled financial institutions, determining what risks they will face. Therefore, risk assessment for the sector as a whole and controlled institutions is considered an important component of FINMA's oversight activities. It focuses on possible prospects. A risk review carried out by FINMA allows the institutions and the general public controlled by it to judge whether the authority has fulfilled its statutory responsibilities. Previously, monitoring was carried out only for risk assessment. Now it will be provided on an annual basis.

Source: https://www.finma.ch/en/news/2019/12/20191210-mm-r...

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.

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