meta_id 3169182

On May 20, 2026, the Swiss Financial Market Supervisory Authority (FINMA) published FINMA Ordinance on risk diversification by banks and investment firms (RVV-FINMA) consolidating existing requirements on risk distribution for banks and securities firms. RVV-FINMA consolidates existing requirements on risk distribution for banks and securities firms and replaces two previous FINMA circulars: Circular 2013/7 on "Limitation of Group-Internal Positions – Banks"; and Circular 2019/1 on "Risk Distribution – Banks". The regulation incorporates minor substantive amendments related to provisions under Basel III, implemented in the Capital Adequacy Ordinance . The new RVV-FINMA regulates the requirements for risk diversification in accordance with the implementing provisions delegated to FINMA in Title IV of the Capital Adequacy Ordinance, specifically concerning the affiliation of counterparties, the upper limit for positions in relation to foreign group companies, the calculation of certain positions in the trading book, risk mitigation and the relief measures for banks in categories 3, 4 and 5 as set out in Annex 3 to the Banking Ordinance . The regulation applies to Swiss banks and securities firms and establishes requirements for managing and distributing risk within their operations and across group entities. The RVV-FINMA enters into force on January 1, 2027. FINMA Circulars 2013/7 and 2019/1 will be repealed simultaneously on the same date. Banks and securities firms should review the regulation and ensure compliance with its requirements ahead of the effective date.