The regulatory environment in which the financial sector operates has been strengthened significantly since the financial crisis of 2008. This year’s Discussion Paper examines the extent to which the financial system has become more resilient through post-crisis regulation and what must be done to ensure consistent implementation of the globally agreed reforms and avoid fragmentation. At the same time, the Discussion Paper outlines a number of evolving risks which are likely to gain prominence over time. Among them, the SFC identifies three key areas which are explored in the form of case studies: (i) the accelerating regulatory complexity in the area of prudential regulation and suggested ways to simplify and manage it; (ii) cybersecurity and operational resilience and ways to increase the effectiveness of cybersecurity regulations sector as well as the cooperation between public and private sector; and (iii) the risks associated with climate change and ways to turn sustainable finance into an opportunity for more integrated financial markets.
Commenting on the Discussion Paper on behalf of the Board of the Swiss Finance Council, Thomas Pohl, Secretary of the Board, said: ‘With regard to the emergence of risks in new spheres, we feel that a new engagement model is needed to address and manage these evolving risks in a way that enhances global financial stability. Our Discussion Paper proposes three sets of recommendations that could serve as building blocks for both regulators and the financial industry. We attach particular importance to concrete and joint action towards a more robust system as well as the implementation of procedures for use in potential future crises.’
Thomas Pohl added: ‘We strongly believe in an open dialogue between policymakers and the financial sector. Establishing global regulatory coordination should be at the core of policy objectives. And we will need to keep in mind the global dimension of financial markets, in particular of the evolving risks we identified, seeking regulatory alignment between the EU and its main trading partners as well as significant financial centres.’
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