Swiss financial market watchdog FINMA has revamped its organizational structure with immediate effect, the regulator said on Tuesday, as it gears up for future challenges including supervision of the enlarged UBS.

Switzerland has pledged to step up regulation of the banking sector since UBS bought Credit Suisse in an emergency takeover in 2023 when its old rival collapsed.

A parliamentary investigation in December cast an unflattering light on the regulator, which plans to introduce a new cross-divisional function for integrated risk expertise to work on topics like liquidity and capital.

Meanwhile, a newly created FINMA Chief Risk Officer function will coordinate risk management processes in the business divisions, FINMA said in a statement.

The new structure would “support more intensified, direct supervision, in particular by allowing the authority to carry out more of its own on-site supervisory reviews,” FINMA said.

CEO Stefan Walter said the revamp promoted FINMA’s goal of preventive supervision, adding the regulator would continue to monitor institutions “in a risk-based and proportionate manner.”

Walter, who joined FINMA in April 2024, has taken a hands-on approach to bank regulation and called for stronger powers for his agency.

FINMA Director Marlene Amstad said that by adapting its structure, FINMA was addressing future challenges.

“These include not only new realities in the banking sector, but also challenges for the entire Swiss financial center such as non-financial risks and conduct issues, money laundering and cybercrime,” Amstad said.

The regulator also said Birgit Rutishauser, deputy CEO and head of the insurance division, would step down by April 30 to embark on a new career. Her move was independent of the organizational changes, FINMA said.

(Reporting by Ariane Luthi; editing by Sonali Paul, Kirsten Donovan)

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