Update on retrocessions under Swiss law: risk of criminal liability for asset managers failing to report retrocessions to clients
This article is about a ruling on retrocessions, dated 14 August 2018. The Swiss Supreme Court ruled that the concealment of retrocessions received by an asset manager may constitute criminal mismanagement pursuant to Art. 158(1) of the Swiss Criminal Code (“SCC”). This decision is the latest of a series of landmark decisions issued by the Swiss Supreme Court since 2006 regarding financial investors’ right to the restitution of retrocessions received by their asset manager.
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