Swiss fintech Leonteq has profits confiscated after regulatory breach

Swiss derivatives specialist Leonteq acted in serious violation of regulatory obligations and has been forced to hand over CHF9.3 million in profits to the Swiss Financial Market Supervisory Authority (FINMA). +Get the most important news from Switzerland in your inbox In connection with the distribution of its financial market products by a number of distributors abroad, Leonteq had "seriously" breached its risk management obligations, FINMA announced on Thursday. Accordingly, it has ordered "measures to restore compliance". According to the decision, Leonteq may now only work with foreign distributors that are subject to regulation comparable to that in Switzerland. Finma will appoint an auditor to monitor the correct implementation of the measures. In addition, the authority has ordered Leonteq to disgorge profits amounting to CHF9.3 million. Insufficiently monitored The case began in 2022. Finma opened enforcement proceedings based on external information, press reports and ...