Swiss monetary watchdog desires to look at clawing again bankers’ bonuses

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 Suisse and sale to UBS UBSG.S.

“The question is on the table and must be discussed now,” FINMA Chairwoman Marlene Amstad informed newspaper Schweiz am Wochenende, when requested about the fitting to demand bonuses be repaid.

“The Credit Suisse case shows that for decades the bank has incurred losses and at the same time paid out high bonuses,” she stated within the interview on Saturday.

“We therefore need a better legal basis so that FINMA can intervene earlier and more systematically.”

FINMA has already demanded stronger powers to supervise lenders in future after it got here underneath fireplace for its tepid response to the mounting issues at Credit Suisse earlier than the financial institution’s crash in March.

The regulator has beforehand stated it needed the power to concern fines, publish particulars of enforcement proceedings, and enhance accountability by establishing a algorithm that determine particular tasks for senior executives – mirroring a framework adopted in Britain.

FINMA can not at the moment 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.

“In the money business, money plays a role,” she informed the newspaper. “That’s why we need fines and why we need the right incentives when it comes to remuneration.”

The energy to publicise FINMA’s proceedings in future would additionally assist, Amstad stated.

“We have teeth and use them, but we should also be allowed to show them,” she stated. “Today, the regulation requires that a lot of our actions stay publicly invisible, which in flip could be interpreted as inaction.

“The Credit Suisse case has once again shown us how important it is to inform other market participants and the public. With this strict obligation of confidentiality regarding measures taken, Switzerland is an exception internationally.”

FINMA additionally needed to have a say in remuneration fashions at banks, though this didn’t imply setting wages, Amstad stated.

“That’s not our job,” she stated. “But we need more legal means to intervene in the remuneration system.”