Depositor protection for clients: swiss banks and securities dealers

Clients at banks and securities dealers authorised by FINMA benefit from protection of privileged deposits up to a maximum of CHF 100,000 per client in bankruptcy proceedings.

If a bank or securities dealer goes bankrupt, deposits are treated as privileged up to a maximum of CHF 100,000 per client. This applies to all deposits, including those made with foreign branches.

Immediate cash payouts

Provided the bankrupt institution has sufficient liquid assets, privileged deposits up to CHF 100,000 per client at Swiss and foreign branches are paid out immediately without the need to draw up a schedule of claims.

Deposit protection

If it is not possible to pay out privileged deposits in full immediately, client deposits held at Swiss branches are paid out as quickly as possible in the form of an advance. Privileged claims pass to the deposit protection scheme in the amount that it pays out.

Bank and vested benefits foundations

Deposits made with bank and vested benefits foundations are additionally privileged up to a maximum of CHF 100,000 over and above other bank deposits. However, they are not dealt with outside the schedule of claims or covered by deposit protection.

Non-privileged deposits

Deposits that are not privileged are paid out as a bankruptcy dividend wherever possible.

Deposits do not include custody account assets

Unlike deposits, custody account assets (e.g. shares and fund units) are the client’s property. By law, they are entirely segregated from bankruptcy proceedings and handed over to the client. The same applies to precious metals that are deposited with the bank but owned by the client.