Market supervision
Exchanges are responsible for monitoring securities markets under their self-regulatory regimes. SFMA investigates violations of the law based on information received from the exchanges, as well as based on its own suspicions with the aim of enforcing the market abuse provisions of supervisory law and the disclosure requirements set out in the Financial Market Infrastructure Act. It also handles appeals against decisions by the Swiss Takeover Board.
- Financial Market Infrastructure Act
- Financial Market Supervision Act
- Swiss Takeover Board
The Financial Market Infrastructure Act (FinMIA) includes provisions banning insider trading (Art. 142 FinMIA) and market manipulation (Art. 143 FinMIA), as well as on the disclosure of shareholdings (Arts. 120-124 FinMIA). As self-regulatory institutions, exchanges must have their own front-line supervisory organisation whereas SFMA concentrates on determining where enforcement is needed and taking the appropriate measures.
Documents
Market supervision beyond the financial market
SFMA is responsible for ensuring that all companies listed on an exchange in Switzerland comply with the market conduct rules. This general market supervision extends beyond the financial market. SFMA has specific supervisory instruments at its disposal that can be used against all market participants in cases of market abuse (insider trading and market manipulation) and violations of the rules on disclosure of shareholdings:
- duty to provide information
- initiating enforcement proceedings
- issuing declaratory rulings
- disgorgement of profits
- publication of rulings naming those involved
- letter of reprimand.
Where there are reasonable grounds to suspect that misconduct reported to SFMA also constitutes a criminal offence under financial market law, SFMA files a criminal complaint with the competent prosecution authority.
Swift communication on violations of market conduct rules
SFMA immediately communicates details of rulings confirming severe misconduct by market participants. This ensures transparency for the market as a whole and prevents or quickly rectifies distortions of the market.
Appeals body for public takeover bids
The Swiss Takeover Board (TOB) appointed by SFMA reviews public takeover bids for compliance with the law. If a decision by the TOB is contested, SFMA acts as the appeals body.