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Mood "Compliance"
Compliance

Who checks on the supervisors?

14 July 2017
Read time: 2 mins
Of Counsel (AEoI, CRS, FATCA)

Who checks on the supervisors? Extract from an article by Ermes Gallarotti pubished in NZZ on 1 April 2017

Swiss banks are going through a difficult time. All their business areas are faced with a period of transition and change. In order to remain competitive in such an environment the banks have to amend their business models, invest in the digitalization which is progressing rapidly and lower their costs. There seems to be no end to this energy-sapping fitness cure. This is why the banks like to dismiss regulatory requirements as a disproportionate interference that entail high costs and the banks see themselves placed at a competitive disadvantage vis-à-vis the foreign banks. The criticism is mainly directed against the supervisory authority (FINMA) who are blamed for being overly eager and going over the top with their regulation frenzy. Recently the Swiss Federal Supreme Court criticized FINMA because they had drawn up a “grey list” of bankers that they considered dubious. This shows that one is aware of the problems. In his article Gallarotti comes to the conclusion that it would be important for FINMA to be checked by an attentive supervisory board. There is nothing more to be said.

Last Sunday Sergio P. Ermotti, CEO UBS Group AG, confirmed what Gallarotti expressed in the NZZ article in April 2017, i.e. that there is too much “Swissness” concerning regulations compared to the countries abroad. He stressed that the banking industry is not against regulations but the growing numbers of regulations.