Regulation

Revision of the too big to fail regime

The takeover of Credit Suisse by UBS in March 2023 marked a turning point for the Swiss financial centre. Following expert studies and publications by the SNB, FINMA and international bodies, the Federal Council published its report on banking stability in April 2024. In it, it concludes that the too big to fail regime needs to be further developed. It proposes 22 measures for direct implementation in the three areas of prevention, liquidity and crisis management tools. Seven further measures are to be examined in greater depth.

The Parliamentary Investigation Commission (PUK) ‘Management of the authorities – CS emergency merger’ investigated the management of the Federal Council, the Federal Administration and other federal agencies during the events of spring 2023 and concluded that years of mismanagement at Credit Suisse were the cause of the crisis. It criticises FINMA's relaxation of capital requirements for foreign subsidiaries and regrets the partial lack of effectiveness of supervisory activities. To remedy the identified shortcomings, the PUK made 20 recommendations and passed four motions and six postulates. The proposed amendments to financial market regulation are aimed at systemically important banks. All of the PUK's proposals were adopted by the National Council and Council of States in the 2025 spring session, thereby giving the Federal Council binding mandates.

On 6 June 2025, the Federal Council published the key points of the amendment to the Banking Act. These are aimed at implementing the measures set out in the Federal Council's report on banking stability and the PUK's report. The proposed measures will be sent out for consultation gradually from autumn 2025 onwards.

It will be crucial for Switzerland as a banking centre to strike the right balance between stability and competitiveness. As the Credit Suisse crisis was not an sector-wide failure, the VAV believes that it is imperative to strictly maintain proportionality and that any new rules take into account the size, complexity, risk profile and legal form of the respective banking institutions. The VAV is closely monitoring this work, particularly in the context of the activities of the Swiss Bankers Association (SBA).

Implementation of the final Basel III standards (“Basel III Final”)

As the final component of its response to the global financial crisis of 2008/2009, the Basel Committee on Banking Supervision (BCBS) adopted the final Basel III standards in 2017. The key elements of the package are: i) increasing the risk sensitivity of capital regulation and ii) introducing a capital floor when using internal models (output floor). For example, the standard approaches in the area of mortgage loans were made more risk-sensitive, leading to an increase in risk weights for investment properties. In 2019, the reform package was supplemented with a revised minimum standard for market risks.

In June 2024, despite various delays in relevant jurisdictions such as the US, the EU and the UK, and in particular despite calls from the industry for a coordinated implementation, the Federal Council decided to bring the standard into force as planned on 1 January 2025 by amending the Capital Adequacy Ordinance. The Federal Council also commissioned FINMA to issue technical implementing provisions for various areas of Basel III Final. This mandate was fulfilled with the enactment of five new FINMA ordinances. The VAV regrets this unnecessary rush on the part of Switzerland, as the lack of coordination in terms of timing could lead to competitive disadvantages vis-à-vis relevant competing financial centres.

Anti-money laundering

In September 2025, Parliament passed the Act on the Transparency of Legal Entities and the Identification of Beneficial Owners (TJPG) and the revision of the Anti-Money Laundering Act (AMLA). This will expand the anti-money laundering regime and bring it into line with international standards in this area (FATF/GAFI). The core elements are: i) the introduction of a national register in which companies and other legal entities must enter their beneficial owners, and ii) the future application of due diligence obligations under money laundering law to advisory activities, in particular legal advice, which present an increased risk of money laundering. In principle, the VAV welcomes the implementation of these measures, with which Switzerland is sending an important signal. However, it regrets that the adopted law does not include a presumption of correctness for entries in the register.

In October 2025, the Federal Council submitted the draft implementation ordinance (TJPV) for consultation. This is intended to specify the rights and obligations of financial intermediaries and the responsibilities of the authorities. In addition, the content of the register and aspects of data protection are to be defined. The ordinance is expected to come into force in 2026.