Switzerland’s financial markets regulator Finma is introducing rules that aim to align bonuses with the long-term interests of banks and insurers, and curb incentives to take risk. They do not impose a cap on compensation.

The regulations will take effect Jan. 1 and apply to Switzerland’s seven biggest banks and five biggest insurers, Finma said Wednesday. They apply to all employees, not just those residing in Switzerland, though the rules leave open the possibility of making exceptions if they are well founded.

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