The Swiss Financial Market Supervisory Authority (FINMA) has undertaken a significant regulatory restructuring concerning audit oversight. This comprehensive revision involves transitioning existing audit regulations from Circular 2013/3 “Auditing” into a new Regulatory Auditing Ordinance, which fulfills legal requirements under the Financial Market Supervision Act.
The primary motivation behind this revision was to enhance regulatory flexibility and compliance. By transferring most existing audit rules into the new ordinance, FINMA has streamlined its regulatory framework. The consultation process for this change was generally well-received, indicating broad support from industry stakeholders.
A key aspect of this transformation is the modification of previous circular annexes. What were once static appendices focused on risk analysis and standard audit strategies will now become more adaptable templates. This change allows for quicker adjustments to evolving financial market conditions. FINMA has also committed to maintaining transparency by ensuring affected parties can provide feedback on template amendments.
Interestingly, the revision deliberately does not address broader improvements to the legal foundations of regulatory auditing, particularly in light of recent financial sector challenges such as the Credit Suisse crisis. This suggests a pragmatic, incremental approach to regulatory reform that focuses on immediate structural improvements rather than comprehensive systemic overhaul.
The strategic approach demonstrates FINMA’s commitment to creating a more responsive, flexible regulatory environment while maintaining rigorous oversight of financial market auditing practices. By converting detailed regulations into a combination of an ordinance and adaptable templates, the authority aims to balance regulatory consistency with the need for timely adjustments in a dynamic financial landscape.
The press release can be read there.
