2016-09-22

FINMA Circular 2010/1 Remuneration Schemes Minimum Standards for Financial Institutions

The Swiss Financial Market Supervisory Authority (FINMA) issued Circular 2010/1 to establish minimum standards for the design, implementation, and disclosure of remuneration schemes at financial institutions. The circular mandates that boards of directors ensure remuneration policies align with long-term stability and risk profiles, requiring significant deferrals for variable pay and strict controls to prevent conflicts of interest. Compliance is mandatory for large banks and insurers, while other firms are encouraged to adopt these principles as best practice guidelines to mitigate inappropriate risk-taking incentives.

Switzerland

Swiss Financial Market Supervisory Authority

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