Regulatory Alerts2024-12-12
FINMA Circular 2026/1 on Nature-related Financial Risks
The Swiss Financial Market Supervisory Authority (FINMA) issued Circular 2026/1 to mandate that banks and insurers integrate the management of climate and other nature-related financial risks into their governance, risk identification, and internal control systems. The regulation requires institutions to conduct materiality assessments and scenario analyses, while imposing specific operational, credit, market, and liquidity risk management obligations tailored to their business models. These requirements are phased in, with Category 1 and 2 institutions needing to address climate risks by January 2026 and full implementation required for all covered entities by January 2028.
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