FINMA closes proceedings against Julius Bär over Signa collapse

FINMA announced on Tuesday the closure of the enforcement proceeding against Julius Bär, the fifth such case against the Zurich-based bank in under ten years. The investigation had been triggered by the heavy write-downs the bank booked in 2024 on loans to the failed property group Signa, owned by Austrian investor René Benko: over 600 million francs in credit losses. An additional strand of the proceeding concerned the bank's business relationships with Russian clients classified as "politically exposed persons."

In its statement, the regulator is sharply critical: Julius Bär is said to have "severely" breached supervisory provisions, in particular the requirements for adequate risk management and the legal obligations on combating money laundering. FINMA nonetheless acknowledges that the bank has already implemented many of the urgently required measures. At FINMA's request, Julius Bär redefined its risk appetite in 2025, ending relationships with some clients and exiting the private corporate debt business. Personnel changes followed both on the board of directors and in management.

Additional capital and individual accountability

Despite the closure of the case, the burdens on the bank are not over. Julius Bär must continue submitting reports to FINMA on its risk culture until 2032 and must hold additional own funds of 250 million francs, a requirement that had been temporarily higher during the proceeding. FINMA will also collect a profit of around ten million francs that the bank is said to have made in connection with the two clients at the centre of the case. By contrast, the 2025 ban on establishing new relationships with certain politically exposed clients will be lifted "gradually."

Julius Bär says it takes note of the closure and "acknowledges the findings." The bank stresses that the facts in question predate the appointment of its current management team, which has since adopted a series of measures to address the legacy issues. The institute is proceeding with its 2026-2028 strategic cycle and maintains its medium-term targets; FINMA's request for additional core capital (CET1) of 250 million francs translates into a higher effective minimum requirement for the capital ratio. The bank has also submitted a request to FINMA for a share buyback programme, a signal shareholders have been waiting for after months of uncertainty.

The question of individual accountability, however, remains open: FINMA has opened proceedings against three former Julius Bär employees, potentially responsible for breaches of supervisory provisions or internal directives. No names were disclosed. The institutional sanction, already borne by the bank and its shareholders through the capital tied up, will therefore remain distinct from any individual liability of former executives — a separate chapter in the Signa case.