Signa case, FINMA concludes proceedings concerning Julius Bär (cross-border guide)

Context

In brief

• FINMA has closed proceedings against Julius Bär and Signa
• More than 600 million Swiss francs in receivables were written down in 2024
• The bank will report on its risk culture until 2032
• Additional capital required: 250 million Swiss francs

Key facts

• What: FINMA enforcement proceedings
• Bank: Julius Bär
• Location: Zurich
• Receivables written down in 2024: more than 600 million Swiss francs
• Reports on risk culture: until 2032
• Additional equity: 250 million Swiss francs
• Profit linked to the two clients: approximately 10 million Swiss francs
• Strategic cycle: 2026-2028

FINMA's decision

In Zurich, FINMA has concluded its enforcement proceedings against Julius Bär. From a regulatory perspective, the bank can therefore close the matter linked to the bankruptcy of Signa, the real estate group of Austrian investor René Benko.

The allegations and measures

In its statement, the Swiss Financial Market Supervisory Authority sharply criticizes Julius Bär. According to FINMA, the institution seriously violated supervisory provisions, especially those relating to adequate risk management and legal obligations to combat money laundering. However, the authority points out that the bank has already implemented many of the emergency measures ordered during the proceedings.

At FINMA's request, Julius Bär redefined its risk appetite in 2025. The review led to the termination of relationships with certain clients and the discontinuation of its private corporate lending business, private debt. Some members of the Board of Directors and management also changed.

The investigation was triggered by the write-downs made in 2024 on loans granted to Signa. The bank had to reduce the value of those loans by more than 600 million Swiss francs. A supplementary proceeding, meanwhile, concerned business relationships with Russian politically exposed persons, referred to in the statement by the acronym PEP.

The closure does not eliminate all obligations. Julius Bär will have to continue submitting reports on its risk culture to FINMA until 2032. The ban, decided in 2025, on initiating new relationships with certain PEP clients will be gradually abolished. The statement also specifies additional own funds of 250 million Swiss francs until the conclusion of the process; the requirement had been temporarily higher during the proceedings. FINMA will also collect approximately 10 million Swiss francs in profit that Julius Bär would have realized in connection with the two clients.

The bank states that the events date back to before the current management team. It announced that it acknowledges the findings, will continue the 2026-2028 strategic cycle and has submitted a request to FINMA for the implementation of a share buyback program. Finally, FINMA has initiated proceedings against three former employees: they are identified as potentially responsible for violations of supervisory provisions or internal directives, without their names being mentioned.

Operational details

What it means for the Swiss reader

The implications of the decision should be considered on two levels. The first concerns the bank and its internal safeguards; the second concerns the obligations that remain after the proceedings are closed. The press release does not announce a new general rule for residents of Switzerland, nor does it indicate changes for all bank customers. It describes measures relating to Julius Bär, certain relationships and a specific category of politically exposed persons.

A closure with residual obligations

The before-and-after comparison is therefore not one between proceedings that are entirely open and a matter with no outstanding requirements. Before the closure, FINMA had requested a different risk appetite, the termination of private debt and changes to the bank's governing bodies. After the conclusion, the reports on risk culture through 2032 and the gradual abolition of the ban on new relationships with certain PEPs remain. The additional capital, on the other hand, is described using the wording until the conclusion of the process: this wording must be retained without turning it into a different deadline.

The figure of 250 million should be read within the scope indicated by the bank. Julius Bär states that the request for additional CET1 core capital translates into an effective minimum requirement for the capital ratio. FINMA adds that the requirement had been temporarily higher during the proceedings. The text does not, however, provide a different measure for other institutions, nor does it indicate an automatic consequence for account holders at Swiss banks.

The buyback program also calls for caution. The bank submitted a request to FINMA: the text does not state that the program has already been authorized or carried out. For shareholders, therefore, the concrete element is the request submitted, not a completed transaction.

For the separate information about conti bancari in Svizzera, it is advisable to keep the banking-services aspect distinct from FINMA enforcement. The source does not indicate which clients were affected by the termination of the relationships, nor which PEP relationships fall within the future gradual abolition of the ban. These details cannot be inferred from the press release.

Recommended tools

For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.

Key points

How to follow the matter without confusing the levels

Four practical checks

To correctly read the next developments, the statement allows for a simple procedure.

1. Separate the authority from the bank. FINMA has concluded the enforcement proceedings; Julius Bär has stated that it takes note of them and acknowledges the findings. These are two different positions: the first concerns the outcome of supervision, the second the institution's response.

2. Distinguish measures already implemented from requests still open. In 2025, risk appetite has been redefined, certain relationships have been terminated, private debt activity has ceased, and governing bodies and management have been changed. The share buyback, on the other hand, is indicated as a request submitted to FINMA. It must not be turned into an operation already carried out.

3. Note the stated deadlines. Reports on risk culture extend through 2032; the bank's stated strategic cycle covers the 2026-2028 period. For the ban on new relationships with certain PEPs, the source uses gradual wording and does not provide a more precise end date. It is therefore the only available time reference, without adding a timetable.

4. Keep proceedings concerning personal responsibilities separate. FINMA has initiated proceedings against three former employees. The statement refers to potential responsibility for violations of supervisory provisions or internal directives and does not mention the names. It therefore does not allow a definitive violation to be attributed to identified individuals.

What cannot be inferred

The text does not prescribe a general procedure for clients, identify the relationships that were terminated, or indicate documents, forms, or individual deadlines. A reader who has a relationship with Julius Bär can use the statement only to understand the public framework of the matter; they cannot derive from it the outcome of their own relationship, nor automatically extend the measures to clients of other banks. To explore the topic of conti bancari in Svizzera further, the link must be kept separate from the specific data on the Signa case.

The same caution applies to shareholders: the buyback request is a step communicated by the bank, while the outcome of the request is not reported in the source. As for personal income, the statement provides no figures or instructions. For a separate verification of net income, use the calcolatore stipendio.

Source: tio.ch