Top Swiss regulator open to idea of bankers paying back bonuses
The president of the Swiss Financial Market Supervisory Authority (FINMA) has said that a bonus clawback scheme for bankers is an issue which is “on the table and which needs to be discussed”.
However, Marlene Amstad told the Schweiz am Wochenende newspaper on Saturday, “we can’t give ourselves this authority, it has to be decided by law-makers”.
“Money plays a role in the business of money,” said the 55-year-old, who has been in office since 2021 and who holds a doctorate in economics. “That’s why fines are needed, and that’s why the right incentives are needed when it comes to remuneration.”
Following the collapse of Credit Suisse and its takeover by rival UBS earlier this year, politicians and industry representatives have been discussing how to put tougher instruments at FINMA’s disposal – with the aim of preventing future banking crises.
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For example, FINMA wants the authority to issue fines and a senior management regime in which a bank must set out in writing who is responsible for what. FINMA would also like to be able to intervene in banks’ remuneration models.
In a report following the crisis, FINMA sharply criticised the bonus policy in place at Credit Suisse, which seemed to be orientated solely towards the performance of managers. Even in bad years, managers received high remuneration, the report said. “Non-financial targets” relating to the behaviour of managers did not play a major role in calculating bonuses; the main criteria was simply that they earned money for the bank.
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