Switzerland's regulator clawed back more than $750,000 from the former CEO of a Swiss bank. He used privileged information from the C-suite to trade in a covert account held by his wife.

Swiss financial supervisor Finma sanctioned the former CEO of an unnamed Swiss bank for insider trading as well as other violations of securities law, it said in a statement on Friday. The undisclosed executive will pay back 730,000 Swiss francs ($753,500) in unlawfully gained profits and is banned from conducting securities dealing business for six years.

«Insider trading undermines confidence in the market,» Finma enforcement head Patric Eymann said. «We will, therefore, continue to rigorously investigate any evidence of violations of supervisory law.»

On Wife's Account

While in top management of the bank, including as its CEO, the banker traded through deposit accounts held in his wife’s name at other banks on inside information. Terming it a «serious» case of insider trading, Finma said the banker's private trading violated ruled «over a period of many years.»

One of Switzerland's biggest cases of insider trading, against Swiss turnaround expert Hans Ziegler, surfaced three years ago. The case sent shockwaves through Swiss financial circles: though the alpine nation buttressed insider trading rules in 2009, enforcement has in the past been lax.

Naming, Shaming

Finma didn't name the banker sanctioned on Friday – and his case is subject to appeal. The Bern-based watchdog has taken a more public tack in naming and shaming bankers, under ex-UBS top banker Mark Branson.

The supervisor typically uses enforcements to send a signal to Swiss banks and bankers to show the «kinds of activities Finma will not tolerate and what it does to prevent them.» The new-found assertiveness comes alongside a more active tone from Switzerland's attorney general on other issues like graft and money-laundering.