Swiss reg' publishes 2021-2024 strategic plan
The Swiss financial market authority Finma on Wednesday unveiled a 10-goal plan for the 2021-2024 period. Among objectives highlighted, a few relate to asset management companies and pension funds. Hence, Finma announced that it will establish “an effective licensing and supervisory regime for occupational pension scheme managers” in a bid to reinforce beneficiaries' protection. The regulator did not elaborate on this. As to investment funds, liquidity mismatch is in target of the Swiss financial watchdog which said it will work on improving data on that issue.
The financial industry ever more turning into a data industry, Finma said it will set out supervisory expectations vis-à-vis the use of big data, including that of artificial and machine learning, in the supervised institutions’ business processes, “in order to mitigate the associated risks.” Finma will itself data-based algorithms “where advantageous” to identify risks.
One chapter of the 2021-2024 Finma’s strategic plan obviously encompasses sustainability developments. The Swiss regulator commits to ensure that the financial institutions identify, assess and manage climate-related financial risks appropriately. It will assess whether adjustments are needed in supervision or regulation, in order to better tackle sustainability-related financial risks.
“Finma will focus particularly on the risks of greenwashing in the provision of financial services and distribution of financial products with a view to protecting clients. It will introduce effective measures within its remit and highlight any need for regulatory action,” the regulator said. It will also call for effective disclosure of climate-related financial risks and will ensure that this includes comparable, meaningful and – where possible – quantitative information based on scenarios, metrics and targets.
“Finma will implement a supervisory framework to monitor climate risk management by larger supervised institutions. It will draw on the recommendations of the relevant international bodies for this,” the watchdog specified.