Finma has come under fire recently for – what critics say – overstepping its role as an overseer. The government therefore has pledged to rework the law that describes its rights and duties.
The government on Wednesday started the consultation process on its draft ordinance on the financial market supervision law. It will more clearly define the obligations of Finma as the supervisory body and the law-making responsibilities of the finance ministry.
The government promised that the new ordinance would not revolutionize the system. Regulatory instruments of Finma will remain untouched as will the independence of Finma, the government said in a statement (available in German here).
Distinction Between Ministry and Finma
The draft came in response to interventions from politicians unhappy about Finma’s activism. They claim that the Bern-based body is writing the rules itself instead of simply controlling compliance with those set by the government.
Martin Landolt, a lawmaker for the centrist BDP, demanded that the government should more clearly define the rights of both Finma and the finance ministry. He told «Der Bund» newspaper that the proposal circulated by the government was a step in the right direction.
The consultation process will last until August 7, 2019 and the new ordinance may come into practice as early as January 1, 2020.
