Finma has come under fire for mothballing an investigation into ex-Raiffeisen boss Pierin Vincenz last year. The Bern-based regulator explains its thinking.
When Finma buried a probe into Pierin Vincenz last year, two months before the ex-Raiffeisen boss was arrested in a criminal investigation into alleged hidden side deals, the Switzerland's financial regulator was booed by media including finews.com and the finance industry alike.
The regulator argued that the 62-year-old banker himself stymied the probe by giving up his last board mandate – at insurer Helvetia – making enforcement proceedings «redundant». The criticism of Finma hasn't ebbed since the probe was dropped in December.
No «Macho» Agency
Meanwhile, Vincenz of course remains remanded in custody as prosecutors look for evidence he enriched himself while at the bank. Finma CEO Mark Branson faced numerous questions at the regulator's annual media conference on Tuesday. The former UBS banker-turned-overseer argued that Vincenz, who retired as CEO of Raiffeisen three years ago, had effectively given himself a lifetime ban by retreating from all board mandates.
The regulator's toughest weapon against bad bankers? A five-year industry ban. «We don't want to be a macho agency,» Branson said – meaning, not one which sanctions for the sake of flexing muscle.
Probe: End Nearing
The criminal probe against Vincenz himself has raised expectations for a separate Finma probe against Raiffeisen. Branson said that enforcement is in its last stages, with the regulator ordering the bank to make improvements. He didn't comment specifically on the measures.
«It's a matter of months,» Branson said. Raiffeisen boss Patrik Gisel, who has also been questioned in the criminal probe, had hoped the bank would end in May.
