Circular 2008/14 Supervisory Reporting - Banks. Supervisory reporting for annual and semi-annual financial statements in the banking sector

Transcription

1 Circular 2008/14 Supervisory Reporting - Banks Supervisory reporting for annual and semi-annual financial statements in the banking sector

2 Circular 2008/14 Supervisory Reporting - Banks Supervisory reporting for annual and semi-annual financial statements in the banking sector

3 Circular 2008/14 Supervisory Reporting - Banks Supervisory reporting for annual and semi-annual financial statements in the banking sector Reference: FINMA circ. 08/14 Supervisory reporting - banks Issued: 20 November 2008 Entry into force: 1 January 2009 Last amendment: Concordance: 16 October 2015 [amendments are denoted with an * and are listed at the end of document] previously FINMA circ. 05/4 "Supervisory reporting- banks" of 24 November 2005 Legal bases: FINMASA Articles 7(1)(b), 24, 25, 29, 39 BA Articles 3(2)(c bis ), 18, 23 bis (3) BO Articles 13, 31, 34, 35, 40 SESTA Articles 10(2)(d), 14, 17, 34a(1) SESTO Articles 23(4), 28(4), 29 CAO Articles 7 NBA Articles 14(2),16, 50 Annex 1: Annex 2: Annex 3: Addressees Parts of reports Statement of qualified or significant equity interests Report on the ten largest exposures BA ISA SESTA CISA AMLA Others Banks Financial groups and congl. Other intermediaries Insurers Ins. groups and congl. Insurance intermediaries Stock exchanges and Securities dealers Fund management companies SICAVs Limited partnerships for CISs SICAFs Custodian banks Asset managers for CISs Distributors Representatives of foreign CISs Other intermediaries SROs DSFIs SRO-supervised institutions Audit firms Rating Agencies X X X Circular 2008/14 Supervisory Reporting - Banks 2

4 Table of Content I. Purpose margin nos. 1 3 II. Reporting population margin nos. 4 6 III. Subject-matter and recipients of filed reports margin nos IV. Timing and deadlines margin nos A. Annual financial statements margin nos B. Interim financial statements margin no. 19 V. Audit margin nos Circular 2008/14 Supervisory Reporting - Banks 3

5 I. Purpose This circular shall define which information banks and securities traders must directly or indirectly submit annually and semi-annually to the FINMA using standardized electronic survey forms, going through the Swiss National Bank (SNB) or the audit firm under bank law or stock exchange law, respectively. 1* This information shall allow the FINMA to operate an early-warning system to ensure a risk-based supervision. The FINMA shall obtain an overall view of the state and development of the banking system through statistical analyses, comparisons prior to cut-off dates, trend analyses and by benchmarking individual banks, securities traders and financial groups as well as peer groups. The supervisory reporting shall be in addition to the reporting of the auditors under bank law and stock exchange law. 2* The summary of qualified equity holders of a bank (Article 13 BO) or qualified equity holders of securities traders (Article 28(4) SESTO) shall be used for monitoring the continuous adherence to licensing requirements (Article 3(2)(cbis) BA; Article 10(2)(d) SESTA) as well as for determining a possible foreign control, which would require consolidated supervision. 3* II. Reporting population All banks and securities traders have to produce annual and semi-annual supervisory reportings (margin nos. 8, 10) as well as annual statements on the holders of qualified or significant equity interests (margin no. 12) as well as the annual reports on the ten largest exposures (margin no. 13) at stand-alone level. 4* In addition to the stand-alone supervisory reporting (margin nos. 9 and 11), financial groups must also report the ten largest exposures at consolidated level (margin no. 13), provided they are obliged to prepare consolidated financial statements or partially consolidated financial statements as per Articles 34 and 35 BO or Article 29 SESTO, or 5* that, due to a holding or a comparable group structure, the FINMA has instructed it or it is otherwise obliged to observe the accounting regulations, capital adequacy rules and the large exposure rules on a consolidated basis. 6 Circular 2008/14 Supervisory Reporting - Banks 4

6 III. Subject-matter and recipients of filed reports Banks, securities dealers and financial groups must report to the following recipients: 1 7* Notification Annual single-entity supervisory reporting as per Annex 1 Addressees SNB and bank law and/or stock exchange law audit firm 8 Annual consolidated supervisory reporting as per Annex 1 Semi-annual single-entity supervisory reporting as per Annex 1 Semi-annual consolidated supervisory reporting as per Annex 1 Statement of qualified or significant equity interests as per Annex 2 Report on the ten largest exposures at single-entity and consolidated basis, as per Annex 3 1 SNB and bank law and/or stock exchange law audit firm SNB and bank law and/or stock exchange law audit firm SNB and bank law and/or stock exchange law audit firm FINMA and bank law and/or stock exchange law audit firm Bank law and stock exchange law audit firm (enclosure to regulatory audit report, FINMA circ. 13/3 Auditing ) * The figures reported to the Swiss National Bank pursuant to Annex 1 are verified by the SNB and processed and forwarded to the FINMA. They are treated as confidential. Thus, duplication is avoided which is also in the interest of the supervised banks and securities traders. 14 Banks and securities dealers prepare their supervisory reporting based on their statutory single-entity financial statements (FINMA circ. 15/1 Accounting - Banks, margin no. 5). 14.1* According to Article 958d(3) Code of Obligations (CO; SR 220), the accounting and financial reporting shall be in Swiss francs or a business-relevant currency. If a foreign currency is used, all accounting values must also be indicated in Swiss francs, as per FINMA circ. 15/1, margin no. 73. The Swiss franc values shall be of significance for the supervisory reporting. 14.2* The survey forms for the supervisory reporting pursuant to Annex 1 shall be based on the presentation guidelines stipulated in FINMA circ. 15/1 Accounting - banks. These forms shall also be used by financial groups that apply internationally recognized accounting standards (FINMA circ. 15/1 Accounting - Banks, margin no. 10). Thus, the items of the consolidated financial statements must also match the relevant positions in the form. The SNB shall make available the relevant forms to the institution that need to submit these reports. As a rule, the data has to be filed electronically. 15* 1 Accessible under Circular 2008/14 Supervisory Reporting - Banks 5

7 IV. Timing and deadlines A. Financial statements The reports pursuant to margin nos. 8 9 as well as shall be prepared as per balance sheet date of the annual financial statement. 16* These reports must be filed within 60 days of the balance sheet date. In justified exceptions, the FINMA may extend the deadline for a maximum of 20 days. 17 As a rule, the supervisory reporting on single-entity and consolidated basis must be submitted before the bank or stock exchange law auditors have concluded their audit. Banks, securities traders and financial groups that need to adjust their accounts after having submitted the report must resubmit the entire reporting to the SNB within seven months of the cut-off date. 18* B. Interim financial statements The reports pursuant to margin nos must be filed within 60 days of the cut-off date of the interim financial statement. In justified exceptions, the FINMA may extend the deadline for a maximum of 20 days. 19 V. Audit The bank or stock exchange law audit firm must audit the supervisory reporting, the statement of qualified or significant equity interests and the report on the ten largest exposures within the scope of the regulatory audit (FINMA circ. 13/3 Auditing ). If necessary, the audit firm may rely on findings made during the financial audit. 20* If the audit leads to results that significantly deviate from the ones reported by the bank or securities dealer, the audit firm shall report and explain them in its regulatory audit report. 21* Circular 2008/14 Supervisory Reporting - Banks 6

8 Annex 1 Components of the reports I. Supervisory reporting on a single-entity basis A. Annually Balance sheet (after appropriation of retained earnings) (SNB form AUR_U / AU201) Income statement (SNB form AUR_U / AU202) Analysis of equity (after appropriation of retained earnings pursuant to proposal of Board of Directors) (SNB form AUR_U / AU203) 1* 2* 3* Provisions, reserves for general banking risks and value adjustments (SNB form AUR_U / AU204) Value adjustments for default risks and country risks, overdue receivables and interest losses (SNB form AUR_U / AU205) 4* 5* Open derivative financial instruments (SNB forms AUR_U / AU206A and AU206B) Additional information - Breakdown of assets under management (SNB form AUR_UEA / AU207) Banks and securities dealers shall report this information if they have exceeded the threshold stated in FINMA circ. 15/1 Accounting Banks, margin no Banks in Categories 1 and 2 pursuant to the annex of FINMA circ. 11/2 Capital buffer and capital planning banks shall report this data even if they do not exceed the thresholds. 6* 7* Collected data regarding privileged deposits, secured deposits and collateral (SNB form SNB AUR_UES / AU208) 8* Key indices (SNB form SNB AUR_U / AU209) 8.1* Semi-annual Interim balance sheet (SNB AURH_U / AU201 form) Interim income statement (SNB form AURH_U / AU202) 9* 10* Circular 2008/14 Supervisory Reporting - Banks 7

9 II. Supervisory reporting on a consolidated basis A. Annually Balance sheet (before appropriation of retained earnings) (SNB form AUR_K / AU301) Income statement (SNB form AUR_K / AU302) Analysis of equity (SNB form AUR_K / AU303) Provisions, reserves for general banking risks and value adjustments (SNB form AUR_K / AU304) Value adjustments for default risks and country risks, overdue receivables and interest losses (SNB form AUR_K / AU305) 11* 12* 12.1* 13* 14* Open derivative financial instruments (SNB forms AUR_K / AU306A and 306B) Additional information - Breakdown of assets under management (SNB form AUR_KEA / AU307) Financial groups shall report this if they have exceeded the threshold stated in FINMA circ. 15/1 Accounting Banks, margin no Financial groups in Categories 1 and 2 pursuant to the annex of FINMA circ. 11/2 Capital buffer and capital planning banks shall report this data even if they do not exceed the thresholds. 15* 16* Key indices (SNB form AUR_K / AU309) 16.1* B. Semi-annual Interim financial statements (SNB form AUR_K / AUH301) Interim income statement (SNB form AUR_K / AUH302) 17* 18* Circular 2008/14 Supervisory Reporting - Banks 8

10 Annex 2 Statement of qualified or significant equity interests Declaration of holders of qualified equity interests as per Article 3(2)(c bis ) BA or significant equity holders as per Article 10(2)(d) SESTA in conjunction with Article 23(4) SESTO (to be filled in by bank or securities dealer) This form has to be completed annually. Changes in comparison to the previous year must be marked. For new qualified or significant equity holders a supplementary sheet must be filed. Bank or securities dealer: In the equity of the above bank or securities dealer of CHF divided into (quantity) registered shares at nominal value of CHF bearer shares at nominal value of CHF each Participation certificate at nominal value CHF each Contribution (in unincorporated companies) CHF each the following designated natural persons or legal entities, considered to be significant equity holders as per Article 3(2)(c bis ) BA or as per Article 23(4) SESTO, hold shares: Circular 2008/14 Supervisory Reporting - Banks 9

11 We have completed this form and the supplementary sheet in acknowledgment of the penal provisions of Article 45(1) FINMASA, and we commit to inform the FINMA of all changes with regard to qualified or significant equity holders (Article 3(6) BA, Article 28(3) SESTO). Place and date Signatures: Chairman or Vice-Chairman Member of Management Enclosures: Supplementary sheet Circular 2008/14 Supervisory Reporting - Banks 10

12 Statement of qualified or significant equity interests Supplementary sheet to the Statement of qualified or significant equity interests 1. Name or firm of equity holders: 2. Address: 3. Residence/domicile (place, country): 4. Nationality: For foreigners in Switzerland, type of residence permit: Nature of equity interest: direct holding (capital): % direct holding (votes): % indirect holding (capital): % in equity interest (name of equity interest) indirect holding (votes): % in equity interest (name of equity interest) Investment in participation capital % Contribution (in unincorporated firm) Control in some other form: Circular 2008/14 Supervisory Reporting - Banks 11

13 Annex 3 Report on the ten largest borrowers I. Borrowers to be reported Banks and securities dealers shall prepare a list of their ten largest borrowers or groups of affiliated borrowers. For the definition of a group of affiliated borrowers, see the rules in Article 109 CAO. 1 If borrowers or groups of affiliated borrowers are public-law entities in OECD states, banks and securities dealers in Switzerland and abroad, or insurance companies in Switzerland or abroad, these do not have to be reported. However, if they engage in transactions with affiliated parties (Organgeschäfte) as described in Article 100(4) CAO, this must be reported. Foreign banks, securities dealers and insurance companies shall be exempted only if these are subject to an adequate supervision. Groups of affiliated borrowers which partly consist of banks, securities dealers or banks (e.g. conglomerates) shall be subject to reporting requirements if the banks, securities dealers or insurance companies in the group are of lesser significance. In such a case, the group's total limits and total exposure (see margin number 3 of this Annex) shall be reported, not only the exposures of borrowers that are not a bank, a securities dealer or insurance company. 2 II. Calculating the exposure The value of relevance for the borrowers or groups of affiliated borrowers to be reported shall be either the overall limit or the total exposure (gross, prior to deducting any specific valuation allowances). The total exposure is the value of relevance if it is higher than the overall limit or if there is no overall limit. The total exposure and possibly the overall limit shall be indicated. The calculation is as follows: 3 Receivables and debt securities in the balance sheet items Receivables from securities financing transactions, Amounts due from clients, Amounts due secured by mortgage, Other financial instruments with fair-value valuation, Trading activities and financial investments as well as Amounts due from banks, if necessary; Off-balance-sheet transactions: The items Contingent liabilities, Irrevocable commitments, payment and additional funding obligations ; Credit equivalents of derivative financial instruments as per Articles CAO and FINMA circ. 08/19 Credit risks - Banks ; and Circular 2008/14 Supervisory Reporting - Banks 12

14 Net long positions in equity securities calculated in accordance with Articles 51 and 52 CAO (for securities considered as equity participation, only investments not subject to consolidation should be considered). The netting of receivables and payables shall be allowed only at the same conditions and in the same scope as in the accounting rules and capital adequacy provisions. 4 The decisive value calculated according to margin no. 3 of this Annex is not risk-weighted. Limits and exposures shall be considered regardless of their coverage. This in particular results in the procedure foreseen in Article 117(1) CAO not being applicable and items with a risk weight of 0% in accordance with the capital adequacy provisions must be considered in full. 5 6 III. Materiality Borrowers or groups of affiliated borrowers do not need to be reported (even if the relevant value as per margin no. 3 of this Annex would cause them to be in this report) if the relevant value is less than CHF 1 million and makes up less than 4% of the eligible regulatory capital as per Articles CAO. This rule also applies for transactions with the bank s affiliated parties as per Article 100(4) CAO. 7 IV. Content of reports The report shall contain the following information for each borrower or group of affiliated borrowers 8 a) Name, first name and address (place of residence/domicile) of the contractual parties and any beneficial owners in case these are not identical to the contractual parties. In the case of public limited companies, the information on the shareholders shall be disclosed. b) Approved overall limit and the corresponding total exposure as per margin no. 3 of this Annex, in CHF 1000: c) Any value adjustments, in CHF 1000: d) Indication whether it is a transaction with the bank s affiliated parties as per Article 100(4) CAO. The key date for calculating the reportable data shall be the key date of the regulatory audit report to which the list of large exposures has been added as required in Article 100 CAO. 9 Circular 2008/14 Supervisory Reporting - Banks 13

15 List of amendments The circular has been amended as follows: The following amendments were decided on 1 June 2012 and they enter into force on 1 January The references to the Capital Adequacy Ordinance (CAO; SR ) have been adapted to the version entering into force on These amendments were passed on 6 December 2012 and enter into force on 1 January Amended margin nos. 7, 13, 20, 21 These amendments were passed on 27 March 2014 and enter into force on 1 January Inserted margin no. 14.1, 14.2 Amended margin nos. 1, 2, 3, 4, 5, 7, 13, 15, 16, 18, 20 These amendments have been decided on 31 July 2015, with effect as of 1 September Amended margin no. 3 These amendments have been decided on 31 July 2015, with effect as of 1 September Amended margin no. 13 The annexes to the circular were amended as follows: These amendments were passed on 27 March 2014 and enter into force on 1 January Newly inserted in Annex 1 margin nos. 8.1, 12.1, 16.1 Amended in Annex 1 margin nos. 2, 4, 5, 8, 13, 14 These amendments were passed on 31 July 2015 and shall enter into force on 1 September Amended Annex 1, margin nos Adjustments of terms for the data collection and forms to reflect these used by the Swiss National Bank, valid as of 30 November These amendments were passed on 16 October 2015 and shall enter into force on 1 January New Appendix 3 Amended Annex 1, margin nos. 7 and 16 Circular 2008/14 Supervisory Reporting - Banks 14

16 Contacts Philipp Rickert Partner, Head of Financial Services, Member of the Executive Committee Zurich Tel Olivier Gauderon Partner, Financial Services Geneva Tel Markus Schunk Partner, Stream Lead Collective Investment Schemes Zurich Tel Patrizio Aggio Director, Financial Services Lugano Tel Mirko Liberto Partner, Stream Lead Regulatory Audit Tel mirkoliberto@kpmg.com Ralph Dicht Partner, Stream Lead Financial Audit Tel rdicht@kpmg.com Cataldo Castagna Partner, Cluster Head Assurance & Accounting Tel ccastagna@kpmg.com Michael Schneebeli Partner, Financial Services Zurich Tel mschneebeli@kpmg.com Helen Campbell Cluster Head Risk Management Tel hcampbell@kpmg.com The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received, or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. The scope of any potential collaboration with audit clients is defined by regulatory requirements governing auditor independence KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss legal entity. All rights reserved. Circular 2008/14 Supervisory Reporting - Banks 15