FINANCIAL INSTITUTIONS

FINANCIAL INSTITUTIONS


FINANCIAL INSTITUTIONS


The importance of guaranteeing an irreproachable activity.




The swiss banking law says that the people responsible of the bank’s administration and management must guarantee good reputation and an irreproachable activity. The federal court has furthermore established that not only administration and management, but the bank as a whole must guarantee an irreproachable activity. This means that if a bank suffers a damage which puts herself (and therefore the whole swiss financial marketplace) at risk, due to inadequate background checks on its employees, the supervising authority may unacknowledge the guarantee of an irreproachable activity.

That’s why the risk that a non-upright employee can represent is crucial for any financial institution. Just like in most corporations, due to the fact that they are profit-driven, it is very important to protect oneself not only against legal risks, but also reputational and economical risks, because all of these (if not correctly managed) can directly or indirectly influence the company’s profitability.