Swiss banks owe their investors 3 billion francs.

Attention tax advisors: Swiss banks owe their investors 3 billion francs. Find out if your clients are affected.

Time is money. This saying has never been truer than it is today. With each passing day in Switzerland, investors' claims against their banks are expiring. Swiss banks owe their customers around three billion francs. Three billion francs in commissions that the financial institutions collected for brokering investment products – even though they weren't allowed to. These kickbacks can be reclaimed if the claim hasn't expired. Are you or your clients in a race against time?

Investors are unaware of the kickbacks

The banks charged investors brokerage commissions when buying financial products like funds and certificates. These commissions were secretly refunded to the banks by the product providers. Most customers were unaware of this. However, as early as October 2012, the Swiss Federal Supreme Court ruled that this practice is illegal: a kickback, known as a retrocession in Switzerland, is prohibited. Banks have since ceased this illegal practice, and customers are entitled to a refund of the commissions. Many investors in Germany, however, never learned of this. Others fear high legal costs. Or they may have repatriated their money from Switzerland after a voluntary disclosure and are relieved to have closed that chapter. Moreover, Swiss banks are often reluctant to provide information on this issue, sometimes even concealing it. As a result, customers miss out on a lot of money. The retrocessions amount to 0.5 – 1 percent of the portfolio value per year, depending on the portfolio and the investment risk. This can easily add up to a five- or even six-figure sum.

Retrocessions only expire after ten years

The banks are relying on time. They hope that the claims will expire. Unfortunately, they are often successful. However, the statute of limitations does not take effect until ten years have passed. The Swiss Federal Supreme Court explicitly defined this statute of limitations in June 2017. So, even for investors who bought financial products in Switzerland before 2012, it is not too late. They can interrupt the expiration period by reclaiming their money now.

Talk to your clients. Ask them if they want their money back. Act, and act quickly. You can still win the race against time.