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SFMA issues new risk diversification ordinance for banks and securities firms

SFMA is moving two existing risk diversification circulars into a new ordinance that will enter into force on 1 January 2027.

SFMA is transferring two existing circulars on risk diversification for banks and securities firms into a new ordinance. The step fulfils the format requirements for regulation under Article 7 paragraph 1 of the Financial Market Supervision Act.

The new Risk Diversification Ordinance for Banks and Securities Firms replaces Circular 2013/7 on limits for intra-group positions at banks and Circular 2019/1 on risk diversification for banks.

SFMA consulted on the ordinance from 3 July 2025 to 29 September 2025. Most respondents welcomed the transfer.

Only a few substantive adjustments were made. These relate to the final Basel III reforms, which entered into force on 1 January 2025 through the Federal Council's Capital Adequacy Ordinance.

The new ordinance enters into force on 1 January 2027. The two previous circulars will be repealed at the same time.