FINMA Takes Action Against Former CEO for Insider Trading

Published On January 27, 2020

27 January 2020: The Swiss Financial Market Supervisory Authority (FINMA) has issued proceedings against the former CEO of a Swiss bank after it found he had engaged in insider trading. 

Following investigations, FINMA found that the CEO had executed transactions through deposit accounts at other banks that were held in his wife’s name. He had used insider information that he obtained through his role and disclosed privileged information to others in order to gain illicit profits.  This violated the bank’s internal directives, as well as the minimum standard directives recognised by FINMA.

Ultimately, FINMA held that the former CEO had “repeatedly and systematically violated supervisory law”. It has therefore moved to confiscate CHF 730,000 of unlawfully acquired profits from the former CEO. Further, he is banned from acting in a management capacity for four years and from carrying on business as a securities dealer for six years.

Commenting on the decision, Head of Enforcement at FINMA, Patric Eymann said, “Bank employees with access to privileged information must abide by supervisory law. This states, quite simply, that anyone who has insider information may not trade in the shares concerned and neither may they disclose such knowledge. Insider trading undermines confidence in the market. We will therefore continue to rigorously investigate any evidence of violations of supervisory law.”