FINMA said in a statement that it had detected “severe organisational failings” at the bank and found it was over-indebted. PricewaterhouseCoopers was appointed to investigate the bank in November of last year and an investigation agent discovered a shortfall of “at least SFr20 million” (around $19.7 million).

Aston Bank’s chief executive and deputy CEO – the bank’s main shareholders - are currently being investigated by Ticino’s criminal prosecution authorities for allegedly taking funds for private purposes and disguising withdrawals with false accounting. The vacuum left by the CEO being abroad and the arrest of his deputy left no assurance that the bank’s affairs would continue to be conducted in a proper manner, the statement continued.

FINMA said restructuring the bank was not a prospect due to a shortage of funds to remedy its over-indebtedness, its existing poor liquidity situation and organisational failings. PwC has been appointed to act as liquidator.

Investors holding privileged deposits at Aston Bank are covered by the Deposit Protection Scheme, however the bank’s accounting systems need to brought to order and privileged account holders need to be identified, so it may take some time for deposits to be repaid, the regulator said.