SKN | Manipulations Uncovered in Swiss Insurance Broker Certification Process

Finma and VBV Move to Address Certification Irregularities

Switzerland’s Financial Market Supervisory Authority (Finma) and the vocational association of the insurance industry (VBV) have uncovered significant manipulations in the certification process for insurance brokers, prompting swift corrective action.

According to Finma, the irregularities were first detected during a routine review of the VBV’s certification exams, which are required for brokers to legally operate in Switzerland. The VBV’s internal investigation revealed that roughly 100 broker certificates had been fraudulently issued due to manipulated exam results or altered data entries.

In a statement released Tuesday, Finma said the VBV had alerted the regulator to “possible irregularities” earlier this year, triggering closer cooperation with law enforcement authorities to determine the extent of the misconduct.

Certificates to Be Revoked, Criminal Charges Filed

The VBV confirmed at the end of October that approximately 100 certifications were invalid, leading the organization to initiate revocation procedures for all affected individuals. Those who received fraudulent credentials will be formally notified, and criminal complaints have been filed against those responsible.

“The integrity of the certification process is essential to maintaining trust in the insurance industry,” the VBV stated, emphasizing that swift action was necessary to protect both policyholders and legitimate brokers.

The issue comes at a particularly sensitive time: the transitional period for certification compliance ends later this year, and demand for broker exams has surged. The spike in exam volume may have contributed to weaknesses in the verification and monitoring process.

Finma to Review Supervision of Registered Brokers

Although the VBV operates on behalf of the Swiss insurance and brokerage industry and is not directly supervised by Finma, independent insurance brokers fall under the regulator’s jurisdiction.

Finma said that if violations of financial market law are confirmed, it will remove the affected brokers from the public intermediary register and assess whether additional supervisory measures are warranted.

For tied intermediaries—those working exclusively for one insurer and not listed in the public register—Finma has delegated responsibility to the insurance companies themselves. Each company must now conduct internal reviews and take “appropriate corrective steps” to ensure compliance.

Restoring Trust in the System

The revelations mark one of the most serious certification breaches in Switzerland’s insurance sector in recent years. Both Finma and the VBV have pledged to strengthen audit mechanisms, improve data integrity checks, and enhance oversight of exam administration to prevent similar incidents.

The case highlights the critical role of compliance and transparency in maintaining confidence in Switzerland’s financial services industry, where the reliability of brokers directly impacts consumers’ financial security.

Closing Insight

Finma’s response underscores that regulatory vigilance extends beyond banks to all sectors under its oversight. By revoking fraudulent certificates and tightening control over the certification process, Swiss authorities aim to reinforce market integrity and restore public trust in the insurance brokerage profession.

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