FINMA’s risk-oriented supervision consists of five supervisory categories. Institutions are categorised on the basis of measurable criteria, namely total assets, assets under management, privileged deposits and required capital (cf. Annex 3 of the BO).
The main features of each supervisory category are as follows:
Institutions in different categories are supervised with different levels of intensity.
Those in categories 1 and 2 require greater attention in view of their importance and risk profile and are thus subject to continual and intensive or close supervision. Those in category 5, on the other hand, are supervised on the basis of quantitative indicators and only looked at more closely when they break the rules or when other extraordinary events occur.
The vast majority of supervised institutions are assigned to category 5.