(last amended on 1 October 2009)
1. What protection do clients have with regard to their account balances if a bank or securities dealer domiciled in Switzerland becomes insolvent?
When a bank or securities dealer goes bankrupt, the deposits of clients are afforded preferential treatment up to a maximum of CHF 100,000 per client. This preferential status applies to all client deposits, including in particular those made with a bank's or securities dealer's branches outside of Switzerland.
If the bank or securities dealer has sufficient liquid assets, preferential deposits held in Switzerland or elsewhere are satisfied immediately up to a maximum of CHF 100,000, without any offsetting of claims and regardless of the ordinary schedule of claims.
In cases in which preferential deposits cannot be disbursed immediately, depositor protection additionally comes into play for preferential deposits held in Switzerland. Under this scheme, depositors are guaranteed payment of deposits by the way of an advance within a period of three months. Where the depositor protection scheme effects payment, the respective preferential claims of the depositors pass to the scheme.
Separate preferential arrangements apply to deposits of up to CHF 100,000 with bank and vested benefits foundations. These deposits are protected in addition to regular bank deposits. However, they do not benefit from additional coverage under the depositor protection scheme and there is no immediate disbursement to depositors prior to the establishment of the ordinary schedule of creditors.
If preferential deposits cannot be disbursed in full even under the depositor protection scheme, these claims are satisfied by way of dividend disbursement in bankruptcy. Preferential deposits are secured by assets located in Switzerland to ensure full payment of these deposits before bankruptcy proceedings are completed at the latest.
2. What happens to the assets in my custodial account if a bank or securities dealer domiciled in Switzerland becomes insolvent?
Unlike cash deposits in bank accounts, assets in custodial accounts are client property (i.e. shares, units in collective investment schemes and other securities). In the event a bank or securities dealer goes bankrupt, all such assets are immediately ringfenced, excluded from bankruptcy and then released to clients. Consequently, assets in custodial accounts are not even included in the bankruptcy assets. This rule applies to all assets in custodial accounts as well as any precious metals physically held at banks to which the client has title.
3. Who can I contact if I have further questions?
questions@finma.ch or tel. +41 31 327 91 00