Regulatory Alerts2019-10-31
FINMA Circular 2017/1 Corporate governance – banks
The Swiss Financial Market Supervisory Authority issued Circular 2017/1 to establish comprehensive requirements for corporate governance, risk management, internal controls, and internal audit at banks and financial groups. The regulation mandates that boards of directors define strategy and risk policy while ensuring at least one-third independence, and requires executive boards to implement robust operational risk management and internal control systems. It further specifies the establishment of independent risk control and compliance functions, as well as autonomous internal audit units, with requirements scaled according to the institution's size, complexity, and systemic importance.
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