Switzerland underwent an assessment update under the Financial Sector Assessment Program (FSAP) in 2006-07. The FSAP team concluded that the macroeconomic and financial sector environment at the time was favourable and that the Swiss banking sector appeared resilient to shocks. It also noted that impressive progress had been made to strengthen the financial supervisory framework since the 2001 FSAP, but that further attention should be devoted to the capital and liquidity requirements of UBS and Credit Suisse, the two large and systemically important banks (SIBs); stronger independence, more funding, and deeper staff resources to the new regulatory and supervisory authority; inspections and capital adequacy of high risk insurers; and supervision of occupational pension schemes. The main purpose of this report is to assess Switzerland's progress in addressing these issues.