Market supervision
The Financial Market Infrastructure Act (FinMIA) includes provisions banning insider trading (Art. 142 FinMIA) and market manipulation (Art. 143 FinMIA), as well as on the disclosure of shareholdings (Arts. 120-124 FinMIA). As self-regulatory institutions, exchanges must have their own front-line supervisory organisation whereas FINMA concentrates on determining where enforcement is needed and taking the appropriate measures.
Market supervision beyond the financial market
FINMA is responsible for ensuring that all companies listed on an exchange in Switzerland comply with the market conduct rules. This general market supervision extends beyond the financial market.
FINMA has specific supervisory instruments at its disposal that can be used against all market participants in cases of market abuse (insider trading and market manipulation) and violations of the rules on disclosure of shareholdings:
- duty to provide information
- initiating enforcement proceedings
- issuing declaratory rulings
- disgorgement of profits
- publication of rulings naming those involved
- letter of reprimand.
Where there are reasonable grounds to suspect that misconduct reported to FINMA also constitutes a criminal offence under financial market law, FINMA files a criminal complaint with the competent prosecution authority.
Swift communication on violations of market conduct rules
FINMA immediately communicates details of rulings confirming severe misconduct by market participants. This ensures transparency for the market as a whole and prevents or quickly rectifies distortions of the market.
Appeals body for public takeover bids
The Swiss Takeover Board (TOB) appointed by FINMA reviews public takeover bids for compliance with the law. If a decision by the TOB is contested, FINMA acts as the appeals body.
