Following the urgent takeover of CS by UBS: Finma demands more competence

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Director Urban Angehrn writes in a guest post in the “Neue Zürcher Zeitung” (Wednesday edition) magazine that he wanted Finma the opportunity to be fined. This is “tried and tested practice in audit and other financial centers that strengthens the precautionary effect of the audit”.

In addition, banks supervised by Finma should “explicitly give responsibility to those in their governing bodies”. This strengthens corporate culture, sharpens risk awareness and makes it easier for supervisors to intervene with managers, Hungary continues.

At the same time, FINMA wants to be able to provide more active information on audit activities to strengthen confidence in the financial centre. Meanwhile, there is no need to change the “core objectives”: Finma is a supervisor, but does not replace boards of directors and management of companies.

And FINMA will not be a criminal authority in the future. “It should also be emphasized that Finma cannot ‘control’ every crisis and provide full control, even with new tools.”

However, it is important for supervisors to learn from the events surrounding CS. FINMA is “open” to comments from the Parliament and the Federal Council. “Of course we will also analyze in detail our actions and options for action,” Angehrn says.

At the same time, the director of Finma defended the actions of his authority: “We took measures, implemented procedures and issued orders, as those in charge at Credit Suisse did not react adequately.”

And as a rule, Finma’s tools will be sufficient to ensure that the audited parties assume their responsibilities and the situation is in order. “But in extreme cases, our skills reach their limits – events surrounding Credit Suisse have shown that.”

According to Angehrn, ultimately, it is politicians who decide which tools the financial market supervisor will and will not use for their work.

(SDA)

Source :Blick