© Reuters. FILE PHOTO: A Swiss flag is pictured above a brand of Credit score Suisse in Bern, Switzerland, November 15, 2023. REUTERS/Denis Balibouse/File Picture
ZURICH (Reuters) – Switzerland’s monetary regulator desires to debate the power to claw again bonuses from bankers as a part of stronger powers following the autumn of Credit score Suisse and sale to UBS.
“The query is on the desk and have to be mentioned now,” FINMA Chairwoman Marlene Amstad informed newspaper Schweiz am Wochenende, when requested about the appropriate to demand bonuses be repaid.
“The Credit score Suisse case reveals that for many years the financial institution has incurred losses and on the identical time paid out excessive bonuses,” she stated within the interview on Saturday.
“We due to this fact want a greater authorized foundation in order that FINMA can intervene earlier and extra systematically.”
FINMA has already demanded stronger powers to supervise lenders in future after it got here below fireplace for its tepid response to the mounting issues at Credit score Suisse earlier than the financial institution’s crash in March.
The regulator has beforehand stated it wished the power to challenge fines, publish particulars of enforcement proceedings, and enhance accountability by establishing a algorithm that determine particular obligations for senior executives – mirroring a framework adopted in Britain.
FINMA can’t at present train these powers, with the choice on whether or not to grant them in future a matter for the Swiss parliament, stated Amstad, who has led the watchdog since 2021.
“Within the cash enterprise, cash performs a task,” she informed the newspaper. “That is why we want fines and why we want the appropriate incentives in terms of remuneration.”
The ability to publicise FINMA’s proceedings in future would additionally assist, Amstad stated.
“We now have tooth and use them, however we also needs to be allowed to point out them,” she stated. “At present, the regulation requires that lots of our actions stay publicly invisible, which in flip could be interpreted as inaction.
“The Credit score Suisse case has as soon as once more proven us how necessary it’s to tell different market contributors and the general public. With this strict obligation of confidentiality concerning measures taken, Switzerland is an exception internationally.”
FINMA additionally wished to have a say in remuneration fashions at banks, though this didn’t imply setting wages, Amstad stated.
“That is not our job,” she stated. “However we want extra authorized means to intervene within the remuneration system.”
