SFMA - an independent supervisory authority
SFMA acts as the independent regulator of Switzerland's financial markets. Its mandate is to supervise banks, insurance companies, financial institutions, collective investment schemes, and their asset managers and fund management companies. It also regulates insurance intermediaries. It has a mandate for protecting creditors, investors and policyholders. SFMA is tasked with making sure that Switzerland’s financial markets work properly.
SFMA's role
When SFMA commenced its activities on 1 January 2009, the Swiss parliament granted it a greater degree of independence than its three predecessor institutions. The institutional, functional and financial independence SFMA enjoys enables it to exercise effective supervision over Switzerland’s financial industry.
Institutional independence
To ensure its institutional independence, SFMA was established as a public law institution in its own right. It is governed by a board of directors and managed by an executive board. This greater autonomy places more stringent requirements on SFMA’s management structures and the checks and balances underpinning them. Strong corporate governance is a key prerequisite for a credible, independent supervisory authority.
Functional independence
Because SFMA is functionally independent of Switzerland’s political authorities, neither Swiss Parliament nor the government can issue directives on how it carries out its regulatory duties. While SFMA acts as an independent authority, it at the same time forms part of Switzerland's political structures and the balancing and control mechanisms they incorporate. Most notably, it is subject to parliamentary scrutiny and must account to the parliamentary commissions overseeing its work.
Financial independence
SFMA is financed not by the taxpayer, but by the levies and fees it charges for its supervisory work. In addition, the institutions SFMA regulates are required to pay an annual levy to cover the costs incurred by SFMA which are not met by the fees. The levies relate to supervision and other SFMA services. SFMA's accounts are audited by the Swiss Federal Audit Office.
Mandate and tasks
SFMA is mandated to protect financial market clients – creditors, investors and policyholders – and is tasked with making sure that Switzerland’s financial markets work properly. Its supervisory tasks - authorisation, supervision and, when required, the enforcement of supervisory law – are derived from that mandate. In addition, SFMA can also regulate activities where it is authorised to do so. In performing its supervisory activities, SFMA adopts a systematic risk-oriented approach and is mindful to ensure continuity and accountability. This strengthens confidence in the proper functioning, integrity, competitiveness and sustainability of Switzerland's financial centre.
Strategy and organisation
Based on legally defined tasks and objectives, SFMA’s Board of Directors draws up strategic goals, which it submits to the Federal Council for approval every four years. To enable it to achieve its strategic goals, SFMA has an appropriate organisational structure with a clear distinction between strategic management through the Board of Directors and operational management through the Executive Board. The Board of Directors defines the strategic course, decides on transactions of substantial importance and oversees the Executive Board. Eight divisions ensure that SFMA fulfils its mandate efficiently and uses its financial resources responsibly and effectively.
Deployment of third parties
In order to meet its goals, SFMA delegates part of its supervisory work to audit firms and also appoints agents who are deployed on a case-by-case basis.
Cooperation in Switzerland and abroad
Finally, SFMA fosters national cooperation and, on the international stage, it represents Switzerland and its principle-based regulatory approach in competent specialist committees. It also responds to requests for assistance from foreign supervisory authorities.