As set out in Article 7 para. 1 let. b FINMASA
, its circulars aim to ensure that the authority applies financial-market legislation consistently and appropriately. These circulars clarify partially defined legal norms and define how FINMA will exercise its available discretion.
While FINMA circulars do not require an explicit basis in formal legislation, their content must be linked to an overarching legal provision. FINMA can decide whether or not to use circulars to define its practice. Before issuing a circular, FINMA runs a consultation
for the relevant stakeholders.
FINMA is bound by its circulars when applying the law. It issues its individual decisions based on the applicable financial-market law and in accordance with the relevant circulars.