As a self-regulated and independent body, SER regulates and monitors SIX’s exchanges. SER reports to the Chairman of the Board of Directors of SIX.
Legislative, Executive, Judiciary
The law provides for self-regulation of the Swiss financial markets under the supervision of FINMA. The regulatory bodies of SIX’s exchanges are structured in accordance with the principle of the separation of powers: The Regulatory Board issues rules, SER monitors compliance with the rules and, in case of rule violations, initiates sanction proceedings within the scope of self-regulation, which are judged by the judicial bodies.
Regulatory Board
The Regulatory Board is responsible for establishing regulations. In the context of self-regulation, it issues regulations for issuers, participants and traders, which are submitted to FINMA for approval. The Regulatory Board forms two committees: the Issuers Committee represents listed companies and investors, and the Participants & Surveillance Committee represents exchange participants.
SER - Listing & Enforcement
The Listing & Enforcement department is responsible for the self-regulated listing and admission to trading of companies and securities. We therefore monitor compliance with information obligations for listed companies: ad hoc publicity and regular reporting, corporate reporting and management transactions. If regulations are breached, we initiate sanctions proceedings. On the basis of public law (not self-regulated), we operate an authorised Prospectus Office and receive disclosures of shareholdings.
SER - Surveillance & Enforcement
The Surveillance & Enforcement department monitors price movement and trading on SIX’s exchanges. In the event of anomalies, we conduct further evaluations and investigations. If regulations are breached, we initiate sanctions proceedings. If irregular activity is substantiatedly suspected, we forward the findings of our investigation to FINMA, and if criminal offences may have been committed, we also notify the relevant law enforcement authorities. Surveillance & Enforcement is also the point of contact for transaction reports and audit reports.
Judicial Bodies
The SIX Sanctions Commission can impose sanctions on issuers, exchange participants, traders and reporting agents. The scope of its activities under self-regulation ranges from reprimands, suspension, expulsion, revoking of registration, suspension of trading and delisting, to fines of up to CHF 10 million. In certain cases, the independent Appeals Board can be called in, and the higher instance is the SIX Board of Arbitration, whose decision is final.
Fines – what happens to the money
All sanctions in the form of fines imposed by the regulatory bodies of SIX are passed on in full. Some are used to fund research projects related to the Swiss financial centre, for example. A fixed portion of all fines paid is also donated to charitable organisations with specific certification.