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Glossary

Prudential Supervision

Prudential Supervision is the ongoing, risk-based monitoring of financial institutions aimed at ensuring their stability and compliance with statutory requirements. It covers capital adequacy, organisation, and risk management, and is intended to protect investors and the integrity of the financial centre.

At a glance

  • Prudential Supervision is risk-based and does not follow fixed annual intervals.
  • It covers areas including capital adequacy, organisational structure, and the Guarantee of Irreproachable Conduct.
  • For wealth managers, it is carried out through the Supervisory Organisation.

Frequently asked questions

It checks whether a financial institution holds adequate resources, maintains an appropriate organisational structure, and operates a functioning risk management system. This is meant to reduce risk for investors, but offers no guarantee against losses.

Sources: FINMA

This entry is for general information purposes only and does not constitute investment, legal or tax advice. It is a simplified summary of the legal position and tax treatment.