The Swiss Federal Administrative Tribunal has annulled a supervisory order issued by the Financial Market Supervisory Authority (Finma) against Zurich-based VP Bank.
In a ruling dated June 16, the court found that the regulator had relied on an "inadmissible retrospective bias" when assessing the bank's conduct, effectively judging past actions with the benefit of hindsight rather than the information available at the time.
The tribunal criticized Finma for failing to establish key facts adequately, undermining the legal basis for the financial supervisor's intervention.
The decision marks a significant legal setback for the regulator, which had imposed the order as part of its oversight of the private bank's operations.
By overturning the measure, the court has cleared a major regulatory hurdle for VP Bank, potentially stabilizing its operational environment and reducing immediate compliance-related uncertainty.
This development underscores the ongoing tension between Swiss banking regulators and institutions under scrutiny, particularly regarding the application of supervisory standards.