Centre de droit bancaire et financier - 30.10.2023

Rétrocessions et execution only : La saga du Handelsgericht continue

The problem surrounding the refund of retrocessions can be popularized in two questions: (i) Does a retrocession have to be refunded to the customer? If so, (ii) how much information does the customer need to receive in order to legally waive this refund?

In the judgment HG210223-O of June 21, 2023 (legally binding), the Zurich Commercial Court confirmed its case law, according to which a bank that is linked to its customer through an execution-only relationship is obliged to return retrocessions. The court also makes new clarifications on the waiver of the right to return. In addition to this classic analysis, the judgment also deals with the validity of a waiver clause contained in general terms and conditions.

Two spouses residing in Germany opened a bank account and maintained an execution-only relationship at the Zurich branch of a Swiss bank. Between 2009 and 2013, the spouses invested their assets in various financial products, including collective investments. During this period, the bank received retrocessions amounting to CHF 58,944.

You can find the full article at this link.