Changes in ultimate management

Reporting upcoming changes in ultimate strategic and executive management is voluntary, but FINMA expects it to be reported. The aim is to prevent problematic individuals from taking up positions in which they are responsible for proper business conduct.
During the licensing process, FINMA verifies whether all individuals who are to be members of ultimate strategic and executive management can assure proper business conduct. Subsequent changes in the ultimate management of a licensed institution are monitored by the regulatory audit firm, which informs FINMA of any negative findings on an ad-hoc basis or in its annual audit report.

What FINMA expects

There is no legal requirement to notify FINMA of changes in ultimate strategic or executive management, but FINMA expects to be notified of such changes before they are announced publicly. This can prevent institutions having to overturn a person’s election or appointment that has already been made public because that person cannot assure proper business conduct.

Form of reporting

Reporting to FINMA need not be in a specified form, but an up-to-date CV of the person intended for a management function should be provided. FINMA intervenes if the person is or has been involved in supervisory or criminal proceedings or if it has reservations about the person for any other reason.