Swiss central bank to revamp rules on deals by execs

ZURICH: The supervisory body of the Swiss central bank said it will overhaul rules on executives’ financial transactions following the controversy over a foreign-exchange trade by the wife of Swiss National Bank (SNB) chairman Philipp Hildebrand.

“With the support of external specialists, a comprehensive revision of the regulations and directives on own-account transactions involving financial instruments by members of the Enlarged Governing Board will be undertaken,” the SNB Bank Council said in an e-mailed statement. “The corresponding draft regulations and the revised directives for SNB employees are to be submitted to the Bank Council as soon as possible.”

In addition, all bank transactions by all members of the Enlarged Governing Board from Jan 1, 2009 until Dec 31, 2011 would be examined by external auditors, the bank council said in the statement.

SNB president Philipp Hildebrand on Jan 5 expressed regret that he didn’t curb a purchase of US dollars for francs by his wife on Aug 15, three weeks before the SNB imposed a limit of 1.20 francs per euro, prompting the US dollar to rise sharply against the Swiss currency.

Hildebrand said he didn’t know about his spouse’s transaction, which was called “sensitive” by an external probe.

Other trades carried out by himself didn’t breach laws or the central bank’s internal rules, Hildebrand said. His statement followed calls for his resignation as media speculated he used transactions for his personal enrichment.