Switzerland’s financial regulator, FINMA, has called for increased legal powers and a change in approach following the collapse of Credit Suisse. The bank was rescued by UBS in March after risk management failures and scandals.

FINMA has criticized the bank for taking “far-reaching and invasive measures” to supervise and rectify deficiencies in corporate governance, risk management, and risk culture. It also criticized the bank for not taking emergency preparation measures, a warning it suggests went unheeded.

FINMA has called for stronger legal basis, fines, and more stringent corporate governance rules in its report on Credit Suisse. It also noted inconsistent implementation of strategic changes and high variable remuneration, despite 43 preliminary investigations and 11 enforcement proceedings.

FINMA conducted 108 on-site supervisory reviews at Credit Suisse, identifying 382 points requiring action. Credit Suisse collapsed due to market panic, prompting FINMA to call for extended options to influence supervised institutions’ governance.