Depositor protection for clients: banks and securities dealers

Clients at FINMA-authorised banks and securities dealers are covered by a depositor protection scheme for the first CHF 100,000 in the event of bankruptcy proceedings.

If a bank or securities dealer is declared bankrupt, deposits up to a maximum of CHF 100,000 per client are secured. This applies to all deposits, including those made at foreign branches.

Immediate cash payouts

If the bankrupt institution has sufficient liquid assets, secured deposits of up to CHF 100,000 per client will be paid out immediately at Swiss and foreign branches, irrespective of the ordinary schedule of claims.

Advance payments

If it is not immediately possible to pay out secured deposits in full, advance payments will be made in respect of client deposits held at Swiss branches by the depositor protection scheme, to which the claim is transferred in the amount paid out on behalf of the bank or securities dealer.

Bank foundations and vested benefits foundations

In addition to ordinary bank deposits, deposits made at bank foundations and vested benefits foundations are secured up to CHF 100,000. However, such deposits are not covered by the depositor protection scheme and therefore can only be recovered through the usual scheduling of claims.

Non-secured deposits

Deposits that are not secured may where possible be recovered through bankruptcy proceeding as liquidation dividends.

Custody accounts excluded

Unlike deposits, custody account assets (e.g. shares and fund units) belong to the client. By law, they are segregated entirely (i.e. not included in the bankruptcy proceedings) and returned to the client. This is also the case with client-owned precious metals deposited physically at a bank.

Fact sheet: Protection of bank deposits

In Switzerland, clients' deposits are protected by both the depositor protection scheme and preferential treatment granted in the event of bankruptcy.

Updated: 17.06.2013 Size: 0,51  MB
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