Under Articles 65 and 73 of the Insurance Supervision Act (ISA
), FINMA can place an insurance group or conglomerate which belongs to a company in Switzerland under group/conglomerate supervision if:
- the insurance group or conglomerate is managed from Switzerland or
- the insurance group, where it is managed from another country, is not subject to equivalent group/conglomerate supervision in that country.
Supervision covers all of a group's companies worldwide.
Criteria for being placed under group supervision
Group supervision becomes necessary when a group operates on an international scale and has a complex structure. Conglomerate supervision is used if the group also plays a key role in the financial service sector; this applies in particular to banks and securities dealers.