ZURICH (Reuters – After a series of scandals that have tarnished Switzerland’s reputation internationally, the chairperson of Switzerland’s financial watchdog called for greater power to penalize bankers who are not following regulations.

Marlene Amstad (head of the Swiss Financial Market Supervisory Authority) stated to the SonntagsZeitung newspaper that the bankers responsible for their mistakes would be held accountable by new tools.

FINMA has the ability to correct grave banker errors but does not possess the wider toolkit of Britain with the Senior Manager Regime.

The legislature must create such instruments. We cannot do it ourselves. At the moment, political initiatives address the necessity for such action. “We are keen to have as many tools as possible, and we are completely open to receiving new, more effective instruments,” she stated.

Bewilderment with Credit Suisse (SIX:) in particular is prompting Switzerland to rethink a system in which top bankers have been largely untouchable, Reuters reported https://www.reuters.com/business/finance/credit-suisse-scandals-prompt-switzerland-think-unthinkable-punish-bankers-2021-05-28 in May.

Credit Suisse’s losses from collapsed family office Archegos, and the destruction of billions client investments by insolvent British financial advisor Greensill were a source of anger to regulators. They also sparked rare discussions among lawmakers regarding the possibility of fining bankers.

Amstad also stated that risk from the mortgage industry had risen due to red-hot property values diverging from economic fundamentals. But, she indicated that it was not up for FINMA decide whether or not to reimpose the anticyclical capital buffers the government suspended in the wake of the pandemic.

“We can request risk surcharges from banks to cover excessive risk taken by banks when they grant mortgages. She said that we use this tool regularly, even recently.” Without giving more details.