FINMA published Guidance 03/2020, which provides information about exemptions and clarifications related to supervisory practices in the context of the COVID-19 crisis. With this guidance, FINMA is communicating further measures for supervised entities as well as provided certain clarifications to the banking sector. These clarifications relate to the leverage ratio relief, dividend distribution, accounting treatment of COVID-19 loans, and treatment of COVID-19 loans in the interest rate risk report.
The guidance also states that if, due to the COVID 19 pandemic, insurance companies, insurance groups, and conglomerates are not able to submit or publish certain reports in due time this year, the submission period will be extended, until May 31, 2020, on notification to FINMA. The notification must be made to FINMA before April 30, 2020. FINMA is willing to approve requests from insurance companies for a temporary smoothing of the yield curves for various currencies, to reduce daily fluctuations of the Swiss Solvency Test. In addition, FINMA is granting the insurance companies more time to submit their supervisory reporting to FINMA.
Keywords: Europe, Switzerland, Banking, Insurance, Accounting, COVID-19, Reporting, Dividend Distribution, Interest Rate Risk, Leverage Ratio, Credit Risk, FINMA
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