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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, thereby protecting investors and the integrity of the financial centre.

At a glance

01

Prudential Supervision is risk-based and does not follow fixed annual intervals.

02

It covers areas including capital adequacy, organisational structure, and the Guarantee of Irreproachable Conduct.

03

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.

Sources: FINMA