ZURICH: Switzerland’s authorities, drawing on the teachings of the collapse of Credit score Suisse, on Wednesday (Aug 12) launched consultations on new banking guidelines that might restrict bankers’ bonuses.
The Federal Council mentioned the consultations would cowl measures designed to “strengthen company governance”, guarantee banks are ready for crises, and grant higher powers to the monetary market supervisory authority (FINMA).
“The goal is to strengthen resilience and confidence within the Swiss monetary system while defending our financial system, taxpayers and the state,” Finance Minister Karin Keller-Sutter advised journalists in Bern.
The proposed measures focus particularly on bankers’ bonuses. They suggest to withhold or get better bonuses from “probably the most senior or most extremely paid managers at systemically vital banks” within the occasion of rule-breaking or mismanagement.
The purpose is to keep away from fee packages that encourage extreme risk-taking.
“The Federal Council desires remuneration to be geared in direction of long-term revenue,” mentioned Keller-Sutter.
The session will begin in late August and run till November.
