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, thereby protecting 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 ensures that a financial institution holds adequate resources, maintains an appropriate organisational structure, and operates a functioning risk management system. This reduces risk for investors, but offers no guarantee against losses.
Part of the topic
Becoming an Independent Wealth Manager
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.