Global Financial Strategy - Swiss Finma defends role in UBS furore

Global Financial Strategy

Search the site >>Advanced search

First for financial regulatory news and views

Swiss Finma defends role in UBS furore

Monday 29 November 2010 – by Will Henley

The Swiss Financial Market Supervisory Authority has defended its impartiality following a tax evasion crisis involving UBS bank.

Responding to a parliamentary report in May which suggested that the regulator had been leaned on by the Swiss government, Finma insisted that it acted “independently”.

It also resisted calls to reinvestigate ex-UBS employees over the handling of the firm’s client data.

“Decisions made by Finma are determined solely by the issue in question and the authority’s legal mandate and are neither guided by pressure from third parties nor influenced by the institutions under its supervision”, the regulator said in a statement.

Finma argued that its predecessor, the Swiss Federal Banking Commission, advised the government’s Federal Council “clearly and in good time” that it would “ultimately” be obliged to order the disclosure of client data under the country’s Banking Act.

Related articles:

UK and Swiss continue tax deal talks

Swiss banker escapes jail over stolen data

‘Double dip recession in Asia now unlikely’

Switzerland signs tax collaboration pact

Swiss regulators call for banks to hold 19% capital

While insisting that no new investigation was necessary, Finma however said that it would demand a declaration from individual ex-UBS employees that they had “no knowledge of any breaches of duty” under Swiss law.

UBS, which was hit by a series of writedowns on toxic assets following the financial crisis, was accused of helping wealthy American investors of evading tax using offshore accounts.

The 69-page report by the parliamentary Control Committees of the National Council and the Council of States in May suggested that the government had pressurised Finma to order UBS to hand over client data on individuals suspected of evading US tax.

WHAT DO YOU THINK?

Name:

Email:

Comment:

Post as	Anonymous
	Display name

Please, enter security code

No comments yet.

Login	Register	Most read	Most commented
Username Password >> Remember me >> Forgotten your password? >> Sign Up GFS is pleased to offer you a two-week free trial. You will receive a daily email bulletin of the latest regulatory news and analysis and a weekly email round-up. Please complete the free trial form. You will also receive full access to our online site.

EDITOR’S CHOICE

INTERVIEWS & FEATURES

STRAW POLL

Will markets in 2012 have a tougher time than 2011?

FIND A REGION