Switzerland Proposes Bonus Deferral Rules for Top Bankers
The plan would require up to 60% of variable pay to be withheld for as long as five years at major banks.
- On Wednesday, The Federal Council unveiled proposals to legally mandate deferrals for top bankers' bonuses and strengthen Finma, the Swiss financial watchdog, following the Credit Suisse collapse.
- The Credit Suisse crisis exposed regulatory weaknesses that prompted stricter oversight. The Swiss financial supervisor faced criticism for leniency, with the SNB calling the measures "Crucial" to remedy past failings.
- New rules would apply to biggest banks including UBS Group, requiring 40% to 60% of variable pay to be retained for five years. Finma could issue administrative fines up to 10% of annual operating revenue.
- Stakeholders can now comment on the proposal before a draft bill reaches parliament next summer. Implementation is expected by early 2029 at the earliest.
- Finance Minister Karin Keller-Sutter stated the additional powers are "no magic potion," but emphasized they are necessary to decrease the probability of a big Swiss bank failing again and protect UBS.
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Bern wants to strengthen the powers of the financial officer. The strengthening of the regulatory framework provides for fines, a bonus freeze and early intervention in cases of suspicion.
Sapo
IOL PortugalThe Swiss Government, which intends to draw lessons from the collapse of Credit Suisse, has today taken another step in its plans to strengthen the banking sector's rules by announcing measures to tighten bankers' bonds. In a statement, quoted by the AFP agency, the Federal Council (Government) announced that it has consulted a set of measures to strengthen corporate governance requirements, to ensure that banks are prepared for crisis situation…
Channel News Asia
The Local - ChSwitzerland seeks to tighten rules on bankers' bonuses
The new rules aim to make banks safer and prevent risky behaviour by senior bankers.
Swiss Bankers Face Mandatory Bonus Deferral Under Reform
(Bloomberg) -- The Swiss government wants to enshrine in law the deferral of top bankers’ bonuses for a number of years, as part of a package aimed at shoring up financial regulation following the collapse of Credit Suisse.
The credit suisse crisis continues to work. The Federal Council presents further, possible regulations for banks.
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