Menu Liti-link AG logo
Frequently asked Questions

Retrozessionen, Retro-Back™ and services of the Liti-Link AG

Here you will find the most frequently asked questions about retrocessions and our services.

What are retrocessions?

Commission fees from banks and financial service providers are called retrocessions. Retrocessions were for many years a well-established and lucrative business model for Swiss banks, asset management companies and financial service providers. Experts estimate - according to statistics from the Swiss Bankers Association - that this procedure unlawfully withheld many billions of Swiss Francs from investors which belong to the clients. (Source: Finalix AG, Zug)

Why am I able to demand repayment of my retrocessions?

Under Swiss law asset managers are prohibited from withholding retrocessions [Judgement of the Swiss Federal Court on 30th October 2012 (4A_127/2012, 4A_141/2012)].

The judgement (4A_508/2016) delivered by the Swiss Federal Supreme Court on 16. June 2017 clarifies the statutory limitation of retrocessions. Clients can recover retrocessions withheld by Swiss asset management companies retroactively for the last 10 years. The statutory limitation period begins on the day on which the Swiss asset management company received the retrocession.Because existing claims are continuously lapsing, time is of the essence. Liti-Link will take measures to stop the limitation period and asserts your claims immediately.

Clients are also entitled to reimbursement for retrocessions wrongly withheld even if no asset management mandate like consulting mandate or execution-only mandate has existed. The Zurich Commerical Court clarified in this case by the end of 2017 (HG150054) that even in case of execution-only mandates or consulting mandates, a surrender obligation exists with respect to the monetary advantage gained beyond the fee, such as retrocessions.

 

What legal basis is there for the repayment of retrocessions?

A basic legal principle passed by the Swiss Federal Supreme Court in 2012 [Judgement of the Swiss Federal Supreme Court of 30 October 2012 (4A_127 / 2012, 4A_141 / 2012)] forbids retrocessions. Back in 2006, the Swiss Federal Supreme Court ruled that clients had a right to retrocessions and finders fees paid to asset management companies. Simultaneous the rights of investors were strengthened. The investors, though, often only recovered the unlawfully withheld fees after initiating court proceedings or settlement action.

The judgement (4A_508/2016) delivered by the Swiss Federal Supreme Court on 16. June 2017 clarifies the statutory limitation of retrocessions. Clients can recover retrocessions withheld by Swiss asset management companies retroactively for the last 10 years. The statutory limitation period begins on the day on which the Swiss asset management company received the retrocession.Because existing claims are continuously lapsing, time is of the essence. Liti-Link will take measures to stop the limitation period and asserts your claims immediately.

Clients are also entitled to reimbursement for retrocessions wrongly withheld even if no asset management mandate like consulting mandate or execution-only mandate has existed. The Zurich Commerical Court clarified in this case by the end of 2017 (HG150054) that even in case of execution-only mandates or consulting mandates, a surrender obligation exists with respect to the monetary advantage gained beyond the fee, such as retrocessions.

 

Who has withheld retrocessions?

Asset management companies, banks and financial service providers in Switzerland have unlawfully withheld these commission fees for many years. Retrocessions were a well-established and lucrative business model for Swiss banks, asset management companies and financial service providers for many years.

How high is the estimated volume of illegally withheld retrocessions?

Experts estimate - according to statistics from the Swiss Bankers Association - that this procedure unlawfully withheld many billions of Swiss Francs, which belong to the clients. (Source: Finalix AG, Zug)

Who is able to demand the repayment of the fees?

Anyone who has invested money in Switzerland in the past ten years (statute of limitations) under an asset management contract / advisory mandate / execution-only relationship and has not yet received the retrocessions back from the bank.

 

How do I know whether I am affected?

Anyone who, in the last ten years (statutory limitation), invested in Switzerland within the framework of an asset management contract, in principle has a claim for the recovery of withheld commission fees from Swiss asset management companies, banks and financial service providers.

Why do I need to react quickly in order to enforce my claim?

Because existing claims are continuously lapsing, time is of the essence. As soon as you have checked whether it is possible for you to assert your claims using our website www.litilink.com at your request we then stop your claims from expiring at the official authorities in Switzerland, and then examine and enforce your claims at the respective asset management company, bank or financial services provider in Switzerland.

The judgement (4A_508/2016) delivered by the Swiss Federal Supreme Court on 16. June 2017 clarifies the statutory limitation of retrocessions. Clients can recover retrocessions withheld by Swiss asset management companies retroactively for the last 10 years. The statutory limitation period begins on the day on which the Swiss asset management company received the retrocession.Because existing claims are continuously lapsing, time is of the essence. Liti-Link will take measures to stop the limitation period and asserts your claims immediately.

What are my chances of recovery?

The decisive aspect is that the legal basis for the recovery of commission fees was clearly regulated by the basic legal principle of the Swiss Federal Supreme Court in 2012 [4A_127 / 2012, 4A_141 / 2012]. Retrocessions are prohibited. Any investor who invested money in Switzerland in the past 10 years (limitation period) as part of an asset management contract is entitled to recover the commission fees withheld. We estimate the chances of success are high.

The judgement (4A_508/2016) delivered by the Swiss Federal Supreme Court on 16. June 2017 clarifies the statutory limitation of retrocessions. Clients can recover retrocessions withheld by Swiss asset management companies retroactively for the last 10 years. The statutory limitation period begins on the day on which the Swiss asset management company received the retrocession.Because existing claims are continuously lapsing, time is of the essence. Liti-Link will take measures to stop the limitation period and asserts your claims immediately.

Due to the different arrangements of the asset management contracts drawn up and continually adapted by the asset managers Liti-Link must request, analyse and, if necessary, subject documents from your asset manager to legal recognition for a detailed and substantive verification of the enforceability of your claims.

The knowledge gained from monitoring and handling processes shows that despite the clear jurisprudence for successful implementation of claims, juridical expertise and negotiating skills are essential.

What is "Retro-Back"?

Retroback is our newest product. Investors are able to determine how high their potential financial claims are for payment of commission fees against asset management companies, banks and financial service providers by checking our website www.litilink.com without charge and completely without obligation. The institutes are legally obliged to repay retrocessions unlawfully charged and withheld from the investor during the last ten years (limitation period) which has not been the case in most instances.

What is new about your service?

Our innovative Retroback product confers on us first mover status. There is no other company that provides a comparable service online. Retroback enables clients from Germany and other countries who in former years invested funds in Switzerland to determine online whether they are entitled to assert their rights to claim their investment back, by enlisting the support of Liti-Link and an innovative product named Retroback, without charge and without any risk of incurring costs.

How does the whole process work?

This is how Retro-Back works

As a first step, investors can determine the size of their potential financial claim on the website www.litilink.com by using the retro-calculator. An application by Liti-Link then cedes the claim to Liti-Link. After returning the application form, you receive power of attorney and cession agreement as well as the agreement to cede claims for damages, issuance and information relating to the retrocession by mail. You sign these documents and initially return them to us in a digital format. You send the original documentation by post to Liti-Link AG, Schützenwiese 8 in 9451 Kriessern (Switzerland).

On receipt of the complete, signed documentation in digital form (scan, photo etc.) Liti-Link then stops the sometimes imminent statutory limitation of the claim with the relevant authorities, without delay via the so called recovery action, the Swiss version of the enforcement action.

Liti-Link then simultaneously demands the fees and claims you are entitled to from the respective asset management company or bank or financial service provider for the last 10 years (plus 5% interest p.a.). The financial risk of legal proceedings or the costs in respect of fees arising for official services (enforcement authorities, court, etc.) is borne by Liti-Link alone.

Any share of a successful recovery for Liti-Link on the net proceeds (= claims in respect of the settlement amount or the claims awarded by the court less all external expenses for legal proceedings, fees) is only then relevant when the claim is successfully asserted and depends materially on the amount of the recovery obtained. The advantage for investors: no risk of costs or high legal fees are incurred in Switzerland in the first place.

What do I need to do to benefit from Retroback?

After determining the potential claim, you then cede the financial claim to Liti-Link. Liti-Link then stops the statutory limitation of the claim, which is imminent in many of these cases, with the relevant authorities in the first instance without delay - via the so called recovery action, the Swiss version of the enforcement action. As a next step Liti-Link then demands the fees from the asset management company or bank or financial service provider for the last 10 years (plus 5% interest p.a.).

What documentation do I need to submit or upload onto the internet page?

We require your current registered address, your date of birth and your telephone number in case of query. Furthermore, you need to provide us with the approximate size of the amount assessed with relation to an asset management contract as well as the name and address of the asset management company in question or the bank or the financial service provider as well as the term of the investment. Asset management companies are obliged to provide Liti-Link with the necessary documents for the calculation of your claims as a consequence of the cession, in accordance with the data protection law of Switzerland.

What does the Liti-Link Retro-Back product promise?

Liti-Link has an experienced team and network with many years of experience in claim management and a large network of partnered law firms. The law allows retrocessions to be recovered in Switzerland. The settlement processes developed by Liti-Link and their partner network enable an effective and efficient implementation with low procedural risk. Liti-Link takes on all costs of proceedings in advance. These will only be deducted when we win your claim.

Liti-Link provides the following tasks free of charge:

  • Issuing documents
  • Reviewing documents
  • Calculating your claim
  • Stopping the limitation period, filing the claim with the enforcement office by registered letter
  • Submitting the request for information to the asset manager
  • Reviewing documents provided by the asset manager
  • Calculation and analysis of the effective claim - value in dispute
  • Calculating interest on arrears
  • Lodging an application for arbitration
  • Involvement in arbitration negotiations
  • Holding settlement negotiations
  • Selecting a legal representative
  • Filing legal action
  • Payment of advance court costs
  • Court proceedings
  • Collections and billing control for payments to be made by the asset manager

How high should the asset amount be to make a recovery worthwhile?

Depending on the investment period, it is worth enforcing a claim for the recovery of sales commission on assets from an amount of 200,000 Swiss Francs.

How much does use of the service cost?

The online assessment and stopping the statutory limitation is without charge in a claims case. The financial risk of a possible lawsuit is borne by Liti-Link alone as well as any costs arising from the official authorities in stopping the statutory limitation. Any share of a successful recovery is only then relevant when the claim is successfully asserted and depends materially on the amount of recovery obtained. After deduction of the fees and external expenses, a 35% share of the recovery is due to Liti-Link. The advantage for investors: no risk of costs or high legal fees are incurred in Switzerland in the first place.

At what point do costs arise for you as the client?

Liti-Link AG is only entitled to share in the proceeds when a claim successfully recovers the unlawfully withheld commission fees. The amount of the share depends substantially on the amount of recovery claimed and is directly set off against the payment made by the bank or financial service provider. Liti-Link therefore guarantees that clients are at no time required to provide advance payments. In a case where the process does not prove successful, no costs are incurred by the client.

How much does it cost?

The financial risk of a possible lawsuit is borne by Liti-Link alone as well as any costs arising from the official authorities in stopping the statutory limitation. Any share of a successful recovery is only then relevant when the claim is successfully asserted and depends materially on the amount of recovery obtained. After deduction of the fees and external expenses, a 35% share of the recovery is due to Liti-Link.

Fees and external expenses’ refers to all third party fees required in enforcing the claim. In particular these are costs from administrative authorities and courts, along with attorney fees of counter-parties.

The advantage for investors: no risk of costs or high legal fees are incurred in Switzerland in the first place.

Is it possible to remain anonymous during the court proceedings?

The basis of the claim is the contractual relationship between the client and the bank, notwithstanding the cession to Liti-Link. In individual cases, it may prove necessary for the client to appear in court as a witness in legal proceedings to enforce the claim.

Is my data safe with Liti-Link?

Any data transferred is encrypted using the Web Application Firewall (WAF) Service of the certified Swiss cyber security experts InfoGuard AG. InfoGuard has been working with large notable, international companies from various industries for almost 30 years and is ISO 27001 certified, the international leading standard for information security management systems.

The availability and reliability of the IT infrastructure are essential for a successful internationally active company. However, it’s just as important that sensitive data is protected against unauthorised access - from our clients’ personal information to asset management contracts or confidential internal documents.

How does the retrocalculator work?

Due to the different arrangements of retrocessions received by the asset managers, Liti-Link must request documents from your asset manager for a detailed and substantive calculation of your claim This must be disclosed by law. The information and calculations on our website generally cannot fully reflect your specific situation and are therefore only an initial indication for your claim.

Claims are calculated based on your information on the average assessment amount, average assessment period and assuming a retrocession rate of 0.75% per annum and 5 % interest on arrears per annum. This is the estimated time the contractual relationship with the asset manager was terminated used for this calculation.

Please be aware that the amount of retrocessions received have and do vary by asset manager. Depending on the arrangement and point in time, the value of retrocessions received and to be returned may be up to 1.5 % of the assessment amount per year.

Along with stopping the limitation period through the relevant authorities - by means of the so-called recovery process, the Swiss version of legal enforcement - based on the information provided by you on the

  • Average assessment amount
  • Assessment period
  • Asset management contract cancellation data

Liti-Link will use a retrocession rate of 1.5 % per annum. Since the exact amount of the retrocession is not yet known, this is to file a sufficiently high amount against the asset manager and stop the limitation period.

Would you like to know how your exact claims against your asset manager? Not a problem. With our Retro-Back tool you can determine and enforce your specific claims by assigning them to Liti-Link AG.

Is Liti-Link financially solid? How long are you able to financially keep going?

Liti-Link AG is a limited liability company with equity capital of 500,000 Swiss Francs. We are financially very sound and well-financed.

Why should I assign my claims to Liti-Link AG?

Liti-Link acquires the potential claims against the asset manager with the assignment and can then act in their own name and at their own risk. The claims can thus be enforced from Switzerland and there is no cost risk for the assigning client.

Without the assignment the claim can only be asserted on behalf of the client and at their own risk. In this case the client is not only liable for the opposing party’s and their own attorney's fees, but also for all fees and ancillary costs.

What are retrocessions?

Commission fees from banks and financial service providers are called retrocessions. Retrocessions were for many years a well-established and lucrative business model for Swiss banks, asset management companies and financial service providers. Experts estimate - according to statistics from the Swiss Bankers Association - that this procedure unlawfully withheld many billions of Swiss Francs from investors which belong to the clients. (Source: Finalix AG, Zug)

Why am I able to demand repayment of my retrocessions?

Under Swiss law asset managers are prohibited from withholding retrocessions [Judgement of the Swiss Federal Court on 30th October 2012 (4A_127/2012, 4A_141/2012)].

The judgement (4A_508/2016) delivered by the Swiss Federal Supreme Court on 16. June 2017 clarifies the statutory limitation of retrocessions. Clients can recover retrocessions withheld by Swiss asset management companies retroactively for the last 10 years. The statutory limitation period begins on the day on which the Swiss asset management company received the retrocession.Because existing claims are continuously lapsing, time is of the essence. Liti-Link will take measures to stop the limitation period and asserts your claims immediately.

Clients are also entitled to reimbursement for retrocessions wrongly withheld even if no asset management mandate like consulting mandate or execution-only mandate has existed. The Zurich Commerical Court clarified in this case by the end of 2017 (HG150054) that even in case of execution-only mandates or consulting mandates, a surrender obligation exists with respect to the monetary advantage gained beyond the fee, such as retrocessions.

 

What legal basis is there for the repayment of retrocessions?

A basic legal principle passed by the Swiss Federal Supreme Court in 2012 [Judgement of the Swiss Federal Supreme Court of 30 October 2012 (4A_127 / 2012, 4A_141 / 2012)] forbids retrocessions. Back in 2006, the Swiss Federal Supreme Court ruled that clients had a right to retrocessions and finders fees paid to asset management companies. Simultaneous the rights of investors were strengthened. The investors, though, often only recovered the unlawfully withheld fees after initiating court proceedings or settlement action.

The judgement (4A_508/2016) delivered by the Swiss Federal Supreme Court on 16. June 2017 clarifies the statutory limitation of retrocessions. Clients can recover retrocessions withheld by Swiss asset management companies retroactively for the last 10 years. The statutory limitation period begins on the day on which the Swiss asset management company received the retrocession.Because existing claims are continuously lapsing, time is of the essence. Liti-Link will take measures to stop the limitation period and asserts your claims immediately.

Clients are also entitled to reimbursement for retrocessions wrongly withheld even if no asset management mandate like consulting mandate or execution-only mandate has existed. The Zurich Commerical Court clarified in this case by the end of 2017 (HG150054) that even in case of execution-only mandates or consulting mandates, a surrender obligation exists with respect to the monetary advantage gained beyond the fee, such as retrocessions.

 

Why do I need to react quickly in order to enforce my claim?

Because existing claims are continuously lapsing, time is of the essence. As soon as you have checked whether it is possible for you to assert your claims using our website www.litilink.com at your request we then stop your claims from expiring at the official authorities in Switzerland, and then examine and enforce your claims at the respective asset management company, bank or financial services provider in Switzerland.

The judgement (4A_508/2016) delivered by the Swiss Federal Supreme Court on 16. June 2017 clarifies the statutory limitation of retrocessions. Clients can recover retrocessions withheld by Swiss asset management companies retroactively for the last 10 years. The statutory limitation period begins on the day on which the Swiss asset management company received the retrocession.Because existing claims are continuously lapsing, time is of the essence. Liti-Link will take measures to stop the limitation period and asserts your claims immediately.

What are my chances of recovery?

The decisive aspect is that the legal basis for the recovery of commission fees was clearly regulated by the basic legal principle of the Swiss Federal Supreme Court in 2012 [4A_127 / 2012, 4A_141 / 2012]. Retrocessions are prohibited. Any investor who invested money in Switzerland in the past 10 years (limitation period) as part of an asset management contract is entitled to recover the commission fees withheld. We estimate the chances of success are high.

The judgement (4A_508/2016) delivered by the Swiss Federal Supreme Court on 16. June 2017 clarifies the statutory limitation of retrocessions. Clients can recover retrocessions withheld by Swiss asset management companies retroactively for the last 10 years. The statutory limitation period begins on the day on which the Swiss asset management company received the retrocession.Because existing claims are continuously lapsing, time is of the essence. Liti-Link will take measures to stop the limitation period and asserts your claims immediately.

Due to the different arrangements of the asset management contracts drawn up and continually adapted by the asset managers Liti-Link must request, analyse and, if necessary, subject documents from your asset manager to legal recognition for a detailed and substantive verification of the enforceability of your claims.

The knowledge gained from monitoring and handling processes shows that despite the clear jurisprudence for successful implementation of claims, juridical expertise and negotiating skills are essential.

Why should I assign my claims to Liti-Link AG?

Liti-Link acquires the potential claims against the asset manager with the assignment and can then act in their own name and at their own risk. The claims can thus be enforced from Switzerland and there is no cost risk for the assigning client.

Without the assignment the claim can only be asserted on behalf of the client and at their own risk. In this case the client is not only liable for the opposing party’s and their own attorney's fees, but also for all fees and ancillary costs.