B-04-29 FINMA Guidance 05/2021

In an investment advisory relationship, if the client carries out transactions that do not result from advice given by the bank, the bank is not in a position of conflict of interest and may retain the retrocessions received (ACJC/439/2026 of 10 March 2026, which has entered into force). In 2015, an experienced and wealthy British client opened an investment advisory relationship with a bank domiciled in Geneva. According to the contractual documentation, the client had direct access to the trading[...]

Convictions for failure to exercise due diligence in financial transactions under Art. 305ter of the Swiss Criminal Code are rare; Federal Supreme Court rulings on the matter are even rarer. The landmark decision of April 13, 2026, addresses two points: 1) the scope of administrative and private anti-money laundering standards in determining the level of due diligence required by the circumstances when identifying the beneficial owner; 2) the question of whether the incorrect identification of the beneficial owner is an[...]

Under what conditions is a bank liable for the failure to execute a stock market order, and to what extent is a client responsible for their own communications and their silence? In a judgment of 20 January 2026, the Geneva Court of Justice clarified these issues by distinguishing between three scenarios: a clear order not executed without sufficient justification; an ambiguous communication not constituting a genuine instruction to sell; and the absence of a timely objection leading to the application[...]

Beyond the ongoing standoff between UBS and the Federal Council, particularly regarding the tightening of capital requirements, UBS’s takeover of Credit Suisse has also had implications under criminal law. In an order dated 8 April 2026 (SK.2025.57), the Criminal Division of the Federal Criminal Court examined the consequences, in terms of corporate criminal liability, of a merger by absorption (Art. 3 para. 1 let. a FusG) on the acquiring company. It ordered the proceedings against UBS to be discontinued, finding[...]