FINMA Overhauls Organizational Structure as Deputy CEO Announces Departure

Switzerland’s financial market regulator, FINMA, has undertaken a significant restructuring of its organizational framework, with its deputy CEO set to step down by April 30.

Switzerland has committed to strengthening banking sector regulations in the wake of UBS’s emergency acquisition of Credit Suisse in 2023 following the latter’s collapse.

A parliamentary investigation conducted in December cast a critical light on FINMA’s performance, prompting the regulator to introduce a new cross-divisional function dedicated to integrated risk expertise. This function will address key issues such as liquidity and capital management.

Additionally, FINMA has established a newly created Chief Risk Officer role, which will oversee and coordinate risk management processes across its business divisions, according to a statement from the regulator.

The revised structure aims to "support more intensified, direct supervision, in particular by allowing the authority to carry out more of its own on-site supervisory reviews," FINMA stated.

FINMA CEO Stefan Walter emphasized that the restructuring aligns with the regulator’s broader goal of preventive supervision. He reiterated that FINMA would continue to oversee financial institutions "in a risk-based and proportionate manner."

Walter, who assumed the role of CEO in April 2024, has taken an assertive stance on banking regulation and has advocated for enhanced regulatory authority for FINMA.

FINMA Director Marlene Amstad highlighted that the structural changes were designed to address future challenges. "These include not only new realities in the banking sector, but also challenges for the entire Swiss financial centre such as non-financial risks and conduct issues, money laundering and cybercrime," Amstad said.

FINMA also confirmed that its deputy CEO and head of the insurance division, Birgit Rutishauser, would step down by April 30 to pursue a new career path. The regulator clarified that her departure was unrelated to the ongoing organizational restructuring.

By fLEXI tEAM