Finma concludes the antitrust review of the bank merger without imposing conditions on UBS. This also means the authority will relinquish its unusual role as a competition regulator.
The Financial Market Supervisory Authority (Finma) is not only the guardian of banking regulation but also acts as a competition authority, at least in the case of UBS's acquisition of Credit Suisse (CS). Following an «extensive review», FINMA has now concluded an antitrust control procedure and found that the merger of the banks «will not eliminate effective competition in any market segment, even if UBS has been able to strengthen its market position in certain sub-segments.»
Therefore, the legal requirements for merger control intervention are not met, and consequently, Finma has decided not to impose conditions, issue directives, or conduct further reviews.
Emergency Exercise with Role Reversal
On 19 March 2023, as part of the Federal Council's measures, Finma approved the merger of the two major banks under antitrust law, a decision Finma defends today as it served creditor protection and was necessary to prevent greater harm to the Swiss financial center and international financial markets. The authority maintains that immediate action was in accordance with the legally prescribed procedure.
Finma also emphasizes that since the merger, it has been in close contact with the competition commission (Weko), which it effectively sidelined.
Weko Support for Finma
«Weko continuously supported Finma in the process. Together, comprehensive market clarifications were made and numerous statements from competitors, associations, and specific customers were evaluated. The extensive market surveys and Weko's detailed statement provided Finma with a sufficient basis to make a final decision,» the statement reads. With the conclusion of the review process, the supervisory authority will relinquish its unaccustomed role as a competition watchdog. As usual, Weko will once again fully assume this responsibility.
UBS has acknowledged Finma's decision to approve the merger unconditionally and has pledged to continue promoting a dynamic, competitive, and fair environment, to implement the integration, and to remain a «key pillar of economic support» for Switzerland.
