The Swiss Financial Market Supervisory Authority (FINMA) published its 2024 Annual Report, alongside enforcement case data and supervisory statistics, and reiterated its focus on independent, preventive and effective supervision. While it characterised 2024 as stable for Swiss financial markets, FINMA highlighted a risk environment that requires stronger resilience at supervised institutions, including risk culture and governance, robust capital buffers and solid liquidity. Supervisory activity in 2024 included 111 on-site reviews at banks, 55 at insurers and 20 in asset management, complemented by stress tests, surveys, senior-level supervisory discussions, data-driven analyses and the use of artificial intelligence. Banks were subject to regular stress testing, including on mortgage portfolios and interest rate risks, with supervisory action taken where outcomes were unsatisfactory; loss-potential analyses were also conducted for systemically important banks. Non-financial risk priorities included cyber risk, with reports of cyber attacks up 30% year on year, and outsourcing risk, where FINMA observed increased concentration of critical services at individual providers and intensified its oversight. UBS supervision focused on the integration of Credit Suisse, involving around 40 on-site reviews in Switzerland and abroad and engagement beyond the regular supervisory dialogue, including approval of the legal merger of the main legal entities. FINMA also reported on its first year supervising insurance intermediaries under the revised Insurance Supervision Act, including 143 investigations into unauthorised activity and breaches of obligations, and steps taken to support the cold-calling ban for health insurance intermediaries. Enforcement work comprised 733 investigations and 38 proceedings concluded against companies and individuals, with five concluded proceedings publicised and bankruptcy proceedings opened in cases where minimum capital requirements were breached. FINMA reported operating costs of CHF 154 million in 2024, up CHF 12 million from 2023, and an average headcount of 634 full-time positions. Looking ahead, FINMA continued to advocate legislative changes to strengthen its powers, including a clearer basis for early intervention, an accountability regime and the power to levy fines, alongside more active public communication about supervision.

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