English translation of article 53 of the Swiss Insurance Supervision Act

Opening of bankruptcy proceedings

Chapter 5: Supervision
Section 2: Protective measures, liquidation and bankruptcy
> Art. 52 Liquidation

This page contains an English translation of the below Article of the Swiss Insurance Supervision Act (ISA) and is part of a web based Swiss ISA commentary in German language. Should you require qualified written legal advice on the ISA from a Swiss lawyer please do not hesitate to contact: Melissa Gautschi

Article 53 of the Swiss Insurance Supervision Act 

Opening of bankruptcy proceedings

1If there are reasonable grounds for concern that an insurance company is over-indebted or has serious liquidity problems, and if the recovery prospects are not good or has such recovery failed, FINMA shall withdraw the insurance company’s authorisation, open the bankruptcy proceedings and publish the same.

2 The provisions on the composition proceedings (articles 293 - 336 of the Debt Enforcement and Bankruptcy Act of 11 April 1889, DEBA), the corporate law moratorium (articles 725 and 725a of the Swiss Code of Obligations) and the duty to notify the court (article 728c paragraph 3 of the Swiss Code of Obligations) are not applicable to insurance companies.

3 FINMA shall appoint one or several bankruptcy liquidators. The latter are subject to FINMA’s supervision and shall report to it if requested.