At its annual media conference, the Swiss Financial Market Supervisory Authority (FINMA) published its 2025 Annual Report and set out how it applied a proportional, risk-based supervisory approach focused on strengthening institutions’ resilience and detecting emerging risks early, alongside expanded publication of supervisory statistics and enforcement data. In 2025 FINMA carried out 113 targeted on-site inspections at banks (including 42 at UBS), 43 at insurance companies and 20 in asset management, concentrating most on-site work on higher supervisory categories while relying more on data-driven supervision for lower-risk firms. It expanded stress testing, including conducting its own liquidity stress tests at Swiss investment funds for the first time, and intervened where results were unsatisfactory. Deep dives at banks identified serious deficiencies, leading to institution-specific capital add-ons in 14 cases, restrictions on business activity and takeover bans in 7 cases, and 15 new enforcement proceedings. FINMA also required systemically important banks to demonstrate capital mitigation measures under specified stress scenarios, assessed compliance with institution-specific liquidity requirements effective from the start of 2025, and reviewed their emergency and recovery plans, while insurance groups submitted recovery plans for the first time in 2025 for assessment in 2026. Cyber and outsourcing risks remained prominent, with nearly half of reported cyberattacks targeting service providers and outsourcing partners and supervisory work finding weaknesses in how some institutions capture, document and monitor outsourced functions. Client protection work included intervention on supplementary health insurance premiums and billing practices in Geneva and Vaud, intensified supervision of portfolio managers for conduct-rule deficiencies, and actions against greenwashing, alongside refusals of numerous insurance intermediary registration applications and investigations in 271 potential misconduct cases. FINMA concluded 55 enforcement proceedings but stated it often could not communicate actively due to statutory limits or court orders, and it opened around 450 investigations into potentially unauthorised activities while making over 300 warning-list entries, a record high. It reported higher resourcing and costs, with average permanent staff rising to 617 full-time equivalents (from 554) and operating costs increasing to CHF 172 million (from CHF 154 million), funded by fees and levies. Looking ahead, FINMA reiterated its push for additional legal tools, including an accountability regime, fining powers, greater ability to communicate about concluded proceedings and authority to intervene earlier.
Swiss Financial Market Supervisory Authority (FINMA) 2026-04-21
Swiss Financial Market Supervisory Authority publishes 2025 Annual Report detailing intensified supervision and calling for stronger enforcement powers
The Swiss Financial Market Supervisory Authority (FINMA) used its 2025 Annual Report to highlight a more intensive, proportional and risk-based supervisory approach, including expanded stress testing, 176 targeted on-site inspections and institution-specific capital add-ons, business restrictions and takeover bans. It reported heightened focus on cyber and outsourcing risks, client protection, and record investigations into unauthorised activities. FINMA also noted higher staffing and costs and reiterated its call for stronger legal tools, including fining powers, an accountability regime, earlier intervention powers and greater ability to communicate on concluded proceedings.