The Swiss Financial Market Supervisory Authority (FINMA), which oversees financial markets and the prudential regulation of banks, is considering new regulations to improve sustainability disclosure and is studying the impact of climate change on Switzerland’s banking sector.
According to a release, FINMA is currently “reviewing approaches for improved disclosure of financial climate risks by major financial institutions”.
A pilot study looking at the climate transition risks faced by two major unnamed banks is also underway as part of attempts by FINMA to assess whether such risks are adequately addressed by financial institutions. Transition risks include policy changes, technological advances and shifting consumer preferences driven by climate change.
FINMA said it is also addressing cases of ‘greenwash’ or the use of “exaggerated or misleading claims about ‘green’ properties” in the selling of investment products.
It confirmed that it i…