The case

After the first part What this toolbox ought to include and the second part on Who will be affected by the wave of regulations? as well as the third part Better governance, at least for SIBs, and the forth part Bonus rules? – at least with regard to systemically important banks (SIBs), the fifth part on a Senior Manager’s Regime and part six on Whistle-blower protection, Prof. Dr Urs Zulauf has come up with his considerations in part seven on the proposed Refinement of the Industry ban and Disgorgement rules. Prof. Zulauf supports this, though not too enthusiastically.

Source: Urs Zulauf (German) – worth reading

The commentary

The Federal Council wants to refine the industry ban and disgorgement rules, which would apply to all supervised financial institutions, banks as well as insurance companies. In future, serious violations of internal company regulations would be sufficient grounds for an industry ban. FINMA ought to be able to impose a professional ban for a first offense for a longer period of time than the current five years and, in the event of a repeat offense, be able to extend it for an indefinite period. In addition, FINMA would also be able to confiscate profits made by traders and client advisors via serious violations of supervisory law or internal company regulations. These legislative changes do not appear to be absolutely necessary or useful, but they are not harmful either. This is why the assessment is rather cautious.

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