Switzerland's financial‑market regulator FINMA announced on Tuesday that it has completed its investigation into Julius Bär’s dealings with the collapsed Austrian real‑estate group Signa. The regulator said the private bank had "in a serious manner" violated supervisory rules, but noted that many of the remedial measures it imposed have already been implemented.
The probe was triggered in 2024 after Julius Bär wrote off more than CHF 600 million of loans to Signa, owned by investor René Benko. A parallel inquiry examined the bank’s relationships with Russian politically exposed persons (PEPs). In response, FINMA required the bank to redefine its risk appetite in 2025, discontinue private‑debt lending, and sever ties with certain clients. Julius Bär also reshaped its board and senior‑management teams.
Under the final settlement, Julius Bär must continue filing detailed risk‑culture reports to FINMA through 2032. The regulator also ordered the bank to hold an additional CHF 250 million of common‑equity Tier 1 (CET1) capital, a requirement that effectively raises its minimum capital ratio. FINMA will retain a profit of roughly CHF 10 million that Julius Bär earned from the two client categories under review.
Julius Bär acknowledged the findings, stating it accepts the conclusions and emphasizing that the issues occurred before the current leadership took office. The bank said it will proceed with its 2026‑2028 strategic plan, maintain its medium‑term targets, and has submitted a request to FINMA for approval of a share‑buyback programme.
Separately, FINMA opened disciplinary proceedings against three former Julius Bär employees who may have been responsible for the regulatory breaches, though their names were not disclosed.
