Annual Report 2016

26
Regulatory Audit | FAOA 2016
Regulatory Audit
Introduction
Regulatory audit firms and regulatory
auditors-in-charge play a decisive role
in the Swiss dualistic financial market
supervision system. As the extended
arm of FINMA they perform the
regulatory audits of those supervised
by FINMA. Their audit responsibilities
are therefore different from those of
the statutory auditor.
The bundling submission amendments
to the AOA and AOO have been in
force since 1 January 2015. The oversight
authority of the FAOA has since
included all financial and regulatory
audit services provided to PIEs.
The volume of the regulatory audit
services market is estimated at over
CHF 100 million. Over the last few
years there has been little change in
the market structure of regulatory audit
services providers. The big three
audit firms, PwC, EY und KPMG, still
perform the vast majority of regulatory
audits, whereby the FAOA sees
intense competition amongst all
regulatory audit services providers
for regulatory audits that are out for
tender.
A total of 19 regulatory audit firms
held a licence to audit under financial
market legislation at the end of 2016.
Figure 8
Regulatory audit firms according to licence type
Licence type Number at 31 December 2016 Number at 31 December 2015
Audits under the Banking Act (BankA), the
Stock Exchanges and Securities Trading Act
(SESTA) and Mortgage Bonds Act (MBA)/
audits under the Collective Investment
Schemes Act (CISA)/audits under the Insurance
Supervision Act (InsSA)/audits of DSFI 6 6
Audits under BankA, SESTA and MBA/audits
under CISA/audits of DSFI 1 1
Audits under BankA, SESTA and MBA 1
Audits under CISA/audits of DSFI 1 1
Audits under CISA 1 1
Audits under InsSA 1 1
Audits of DSFI 8 8
Total regulatory audit firms 19 18
The number of FINMA-supervised
institutions fell during the year, except
in the CISA area. The following
table shows the number of institutes
audited by licensed regulatory auditors
at the end of 2016.