Basel, 14 August 2009 – The Board of Directors of the Swiss Bankers Association (SBA) supports the main thrust of the new FINMA Circular "Remuneration systems". In the current environment the SBA recognises a certain need for regulation in this area and generally believes that the incentive effects of remuneration systems need to be taken into account in managing risks. In its statement the SBA also welcomed the fact that the solution proposed by FINMA for the most part follows a proven principles-based approach. In some areas, however, the draft goes too far in its depth and scope, thereby imposing excessive constraints on entrepreneurial freedom. In particular the SBA is concerned that this relatively strict regulation by comparison with other countries may adversely impact the competitiveness of the Swiss financial services industry. The SBA therefore urges that the definitive version of the Circular be aligned with international developments when it enters into force. Large sections of the Circular are also too generally formulated and do not take sufficient account of the heterogeneity of the Swiss financial sector, which would demand specific rules to be formulated for non-standard situations. Ultimately, reporting duties towards regulatory authorities can be a sensible measure, but the SBA vigorously rejects the idea of forcing all companies to produce a public remuneration report.

Contacts
Thomas Sutter	James Nason
Head of Communications Switzerland	Head of International Communications
Tel. +41 61 295 92 06	Tel. +41 61 295 92 15
Fax +41 61 272 53 82	Fax +41 61 272 53 82
www.swissbanking.org	www.swissbanking.org