The topic of retrocessions has been in the focus of banks, asset managers, clients, pension funds, lawyers and the media ever since a verdict was given by the Federal Supreme Court in March 2006 (BGE 132 II 460). In their decision, the Federal Supreme Court decided that the retrocessions received by asset managers from banks belong to the clients of the respective asset management mandates. The topic was further intensified by another judgment of the Federal Supreme Court of October 2012 (BGE 138 III 755) which extended the duty of restitution; not only asset managers are bound to restitute the retrocessions received from banks, but also the banks have to pass on hidden commissions they receive from product providers to clients with discretionary mandates.

By Thomas Müller (Reference: CapLaw-2015-61)