6: Supervisory Authority

Art. 34 Organisation

The supervisory authority is the Federal Banking Commission ("Supervisory Authority"). It is organised according to the prescriptions of Art. 23 of the Federal Law on Banks and Savings Banks.

Art. 35 Tasks

1 The Supervisory Authority issues the supervisory orders necessary to enforce the law and its implementing provisions and supervises compliance with the prescriptions of the law and its rules.

2 Persons and companies who are subject to supervision by the Supervisory Authority, must provide it with all information and documents it demands to fulfil its tasks. In addition, the following are subject to this requirement:

a. persons who hold a qualified participation in the capital of a stock exchange or a security dealer;

b. auditing firms;

c. persons or companies who are subject to an obligation to notify;

d. bidders in the case of public take-over bids;

e. target companies.

3 Should the Supervisory Authority have knowledge of violations of the law or of other irregularities, it ensures that legal order is re-established and that the irregularities are eliminated. It issues the necessary supervisory orders to this effect. It may:

a. suspend for a short term all legal transactions and payments of a security dealer as well as payments made to it if there is imminent danger for its creditors;

b. bar from being active as a security dealer, provisionally or for an unlimited duration, those responsible employees of a security dealer who trade in securities and grossly violate this law, the implementing provisions or the internal rules of the company.

4 If, despite a prior warning, the enforceable supervisory orders of the Supervisory Authority are not followed within the period fixed, then the Supervisory Authority may itself take the measures ordered by it at the cost of the defaulting person or company pursuant to par. 2.

5 In the case of a refusal to submit itself to an enforceable supervisory order, the Supervisory Authority may publish these in the Swiss Official Gazette ("Schweizerisches Handelsamtblatt") or bring it to the attention of the public in another manner. Such an action must be preceded by a warning.

6 When the Supervisory Authority learns that punishable acts have been committed, it shall inform the prosecuting authorities thereof without delay. These authorities are bound by the duty of reciprocal administrative legal assistance.

Art. 36 Revocation of license

1 The Supervisory Authority shall revoke the licence of a stock exchange and of a security dealer who no longer fulfil the conditions for the granting of such license or who seriously violate their legal duties or internal prescriptions.

2 The revocation of the license has the effect of dissolving bodies corporate, partnerships and limited partnerships and deleting them from the commercial register in the case of single-person firms. The Supervisory Authority shall designate the liquidator and supervise his activity. In the case of security dealers which are also subject to the Federal Law on Banks and Savings Banks, the Supervisory Authority may waive dissolution in so far as the licence to conduct banking operations does not require to be revoked as well.

KPMG Fides Unofficial Translation of Swiss Federal Stock Exchange Law
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