– Postfinance has to increase its own funds
The financial institution had lodged an appeal once morest a corresponding decision by the Financial Market Authority. This has now been rejected by the Federal Administrative Court.
Postfinance has to increase its own funds at the behest of Finma. The Federal Administrative Court dismissed an appeal by the financial institution once morest a corresponding decision by the Financial Market Authority.
In July 2021, the Swiss Financial Market Supervisory Authority (Finma) ordered an equity surcharge for Postfinance. Otherwise there would not be sufficient collateral in relation to the risks taken by Postfinance. The judgment of the Federal Administrative Court published on Thursday does not reveal how high the amount is because the number was anonymized.
However, it is over 270 million francs, as Postfinance criticized in the current decision. Finma demanded as much in a first ruling on the same matter. However, the Federal Supreme Court overturned this order and referred the matter back to Finma for a new assessment.
The reason for this was that Finma’s management had made the decision. However, since this is a matter of great importance, it was within the competence of the Board of Directors to decide on it.
Criticized method
The Federal Administrative Court dismissed all of Postfinance’s complaints. The company criticized that the increased interest rate risks from Finma’s point of view resulted from their calculation method. There is no legal basis for this and the method contradicts international standards.
The Federal Administrative Court does not follow this view. In a detailed judgment, it sheds light on the criteria used and Finma’s approach. It therefore considers the additional own funds to be made available to be lawful.
Postfinance is a subsidiary of Swiss Post organized under private law. In June 2015, the Swiss National Bank classified it as systemically important. The formal state guarantee expired at the end of September 2017. Parliament rejected privatization last fall.
No mortgages and loans
Due to the Postal Organization Act, which Postfinance is subject to, it is not allowed to grant any loans or mortgages to third parties. Its legal mandate is to provide basic payment services nationwide.
The present judgment is not yet final. It can be referred to the federal court. (Judgment B-4004/2021 of 3/30/2023)
SDA/sep
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