Finma said it is creating a new unit, Resolution, to pool expertise in winding down financial firms in case of insolvency which had until now been spread throughout its organization. David Wyss, currently Finma's head of enforcement, will lead the newly created unit.

The resolution unit will supervise banks' preparations for a potential resolution and approve emergency plans drawn up for systemically important banks in Switzerland, an area which has absorbed much of Finma's capacity since the 2008-9 financial crisis.

Focus On Resolution Planning

«Preparations for resolution, especially for systemically important banks, and the handling of resolution and insolvency proceedings are core tasks for our supervisory authority,» Finma head Mark Branson said in a statement. «The creation of the Resolution division means that this is now reflected in our organisation.»

Financial supervisors in other countries typically have a separate resolution unit, or even a standalone regulator, Finma noted.

New COO

Finma also said it has hired Alexandra Karg as its new operating chief, effective in October. Karg is currently head of information products at Stuttgart's stock exchange, and was head of data operations at Swiss bourse SIX previously.

Karg's appointment as well as the new resolution unit will bring Finma's top management to eight people. Finma veteran Patric Eymann will replace Wyss at the enforcement arm.