Commentaries

In a ruling 4A_535/2025 dated April 28, 2026, scheduled for publication, the Federal Court rules on the right—or rather, the obligation— of an agent to refuse to carry out a client’s instructions when there is reason to believe that the client’s assets fall under the “freezing of assets and economic resources” provision within the meaning ofArticle 15 of the Ordinance Establishing Measures in Connection with the Situation in Ukraine (“Ukraine Ordinance”). On November 18, 2021, an investment company (the “Company”),[...]

According to Judgment 2C_506/2024 of May 4, 2026 (scheduled for publication), issued by the Second Public Law Division of the Federal Supreme Court, professional secrecy does not preclude Switzerland from providing a foreign state, in the context of administrative assistance proceedings, with documents held by the cantonal tax administration that it received from an attorney acting on behalf of his client. In this case, the Spanish tax authorities suspect a taxpayer domiciled in Switzerland of actually being domiciled in Spain.[...]

Can a foreign judgment be recognized in Switzerland if the defendant was never actually aware of the proceedings brought against him? This question arises in particular when the court, unable to serve the person, resorts to service by publication. In its decision 4A_157/2025 of March 13, 2026, the Federal Supreme Court clarifies that service is compatible with Art. 27(2)(a) of the Swiss International Private Law Act (LDIP) only if it offers the defendant a genuine opportunity to participate in the[...]

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[...]

In a judgment intended for publication, the Federal Supreme Court has settled a previously unresolved issue by confirming that PostFinance may refuse to open a bank account on the grounds that the relationship would entail disproportionately high costs. This ground, provided for in Art. 45(1)(a) OPO, has a sufficient legal basis. In the present case, however, PostFinance was unable to demonstrate the existence of such costs (4A_454/2025 of 3 March 2026). In 2022, a Russian national resident in Switzerland applied[...]

In its final judgment ACJC/151/2026 of January 27, 2026, the Court of Justice of the Canton of Geneva upheld the dismissal of a claim for payment filed by a client who held the status of a qualified investor within the meaning of the aLPCC against a bank, following losses incurred on equity investments. It clarifies the scope of the bank’s duty of care in the presence of a qualified investor and excludes the application of exceptional circumstances, such as the[...]

When a creditor seeks to have assets located in Switzerland that belong to a foreign state placed under sequestration under the Swiss Debt Enforcement and Bankruptcy Act (DEBA), the creditor must, in particular, demonstrate that its claim has a sufficient connection to Swiss territory. In its decision 5A_617/2025 of January 29, 2026, the Federal Supreme Court confirmed that this requirement applies even when (i) the creditor is itself a foreign state, (ii) it relies on a final release order (Art.[...]

In the decision 5A_988/2025 of March 3, 2026, which is scheduled for publication, the Federal Supreme Court (FSC) ruled that the former officers of a company whose powers of representation have been revoked by FINMA retain standing to appeal the bankruptcy ruling on behalf of the company, even when the bankruptcy is declared by an ordinary court and not by FINMA itself. This extension of existing case law ensures effective access to justice (Art. 29a Cst.) in the context of[...]

The ten-year statute of limitations for a claim arising from an overdraft begins to run each time the balance is settled and acknowledged by the parties. However, when the contractual relationship continues, the balance is de facto carried over to a new account, such that these successive settlements give rise to new statutes of limitations. Termination of the contract, on the other hand, results in a final account statement, makes the balance due and payable, and triggers a new (and[...]

Whilst we have repeatedly highlighted the lack of detail in the summaries of the Banking Supervision Commission’s (hereinafter: the Commission) ‘leading cases’, it must be acknowledged that the latest publication raises a number of interesting and rarely addressed issues. Among these, we note first and foremost a clarification regarding the scope of application of the Bank Due Diligence Convention (hereinafter: the BDC or the Convention) in relation to credit card transactions. Recalling first of all that the CDB 20 applies[...]

In a ruling RR.2023.127-133 dated January 20, 2026, the Federal Criminal Court (FCC) dismissed appeals against a decision to return seized funds to Russia but suspended the case pending a favorable development in the internal situation. Ruling without costs, it referred the case back to the Federal Department of Justice and Police (FDJP) for a decision on the application of Art. 1a EIMP, which stipulates that cooperation must be compatible, in particular, with Swiss public policy. The case concerns funds[...]

Can PostFinance refuse to open a bank account on the grounds that the relationship would entail disproportionately high costs? In a brief ruling intended for publication, the Federal Court leaves the question wide open. However, it specifies that a customer wishing to take legal action to open a bank account cannot invoke the special consumer forum provided for in Art. 32 CPC (4A_115/2025 of 12 January 2026). In 2022, a foreign politician domiciled in Geneva applied to open a bank[...]

On several occasions, the Federal Court has left open the question of the obligation to return retrocessions in an execution-only relationship (see in particular Fischer, cdbf.ch/1338). In its judgment 4A_149/2025 of January 12, 2026, intended for publication, it ruled that the compensation received by a private bank in connection with the distribution of investment funds and structured products was not subject to restitution, given the circumstances. The relationship between the parties was one of execution only; however, the disputed remuneration[...]

In November 2025, the European Commission presented the Digital Omnibus Package. Its second part (the ‘Digital Omnibus II’) proposes several targeted adjustments to Regulation (EU) 2024/1689 on artificial intelligence (IA Act) that pursue a central objective: to improve its implementation in light of the initial difficulties identified, while maintaining the architecture of the law based on the assessment of the risks presented by an AI system (AIS) or a general-purpose AI model (GPAIM). As already mentioned in a previous commentary[...]

Is an asset manager who receives retrocessions for ten years without informing his clients guilty of unfair management and can he be prohibited from practicing within the meaning of Art. 67 CP? The Federal Supreme Court answered both questions in the affirmative in its judgment 6B_431/2024 of November 10, 2025. In this case, an asset manager was accused of receiving retrocessions between 2006 and 2016 without informing his clients. The asset manager received 25% of the annual deposit fees, 60%[...]

The growing interest in cryptoassets has been accompanied in Switzerland by the rapid development of services for the custody of these assets. Against this backdrop, on 12 January 2026 FINMA published its Supervisory Notice 01/2026 on the custody of cryptoassets. It sets out the legal basis governing their custody and withdrawal in the event of the custodian's bankruptcy, while highlighting the risks associated with certain configurations, particularly when foreign sub-custodians are used. This communication addresses four topics: (i) the custody[...]

In a judgment intended for publication, the Federal Court ruled on the method applicable for separating bank assets derived from a criminal offence from legal bank assets deposited in the same account (7B_65/2023 of 5 December 2025). In 2010, the Office of the Attorney General of Switzerland (‘OAG’) opened criminal proceedings against persons unknown on suspicion of money laundering of assets derived from crimes committed in Russia (Art. 305bis(1) and (2) of the Swiss Criminal Code). In essence, the Russian[...]

In its ruling 5A_50/2025 of 12 December 2025, the Federal Court ruled that the Obergericht of the canton of Zug had acted arbitrarily in lifting an attachment based on a judgment of the High Court of Singapore (Art. 271 para. 1 no. 6 LP). The dispute concerns the indirect jurisdiction of the Singapore court, which is based on a choice of court clause (Art. 26(b) LDIP). Is the alleged debtor bound by this clause under the rules on representation? The[...]

The Federal Court confirms the applicability of the general terms and conditions to the opening of a sub-account and denies that the bank committed gross negligence in failing to detect fraudulent orders (4A_76/2025 of 21 August 2025). The client, a wealthy businessman, has had numerous business dealings with the bank since 2005. The bank's general terms and conditions contain a complaint clause, requiring the client to contest orders or instructions immediately after notification, but no later than within the specified[...]

On 25 November, Switzerland entered the era of Open Banking with the launch of the ‘bLink’ platform operated by SIX. This development places Switzerland within an international movement that aims to promote the sharing of financial data via standardised interfaces, in order to offer customers greater access to innovative services offered by a variety of financial service providers. Open Banking is defined as a standardised model for sharing financial data, which aims to facilitate the exchange of information between financial[...]

In a ruling dated 16 September 2025, the Federal Court confirmed that the publication for five years on the FINMA website of a decision prohibiting a person from carrying out an activity subject to authorisation under financial market law without the necessary authorisation is justified (2C_596/2024 of 16 September 2025) . This ruling is based on the same facts as ruling 2C_597/2024 of 16 September 2025 (commented on in: Dupuis, cdbf.ch/1440/). In summary, a company and its three main shareholders,[...]

The criminal prosecution authority may refuse to seal documents that a bank must keep available for the criminal authorities in accordance with Article 7 AMLA, even if the documents were drawn up by lawyers. This conclusion, reached by the Federal Supreme Court in a ruling dated October 2, 2025—not intended for publication but handed down by five judges—is in line with the trend in case law relating to attorney-client privilege in the context of anti-money laundering (7B_1154/2024). In 2023, the[...]

In a ruling dated September 24, 2025, the Federal Court reiterated that the offense of money laundering requires intent on the part of the perpetrator, at least in the form of eventual intent, and that a single violation of anti-money laundering rules, even a significant one, does not in itself allow such intent to be inferred (6B_1180/2023). The Office of the Attorney General of Switzerland accused a bank employee of opening bank accounts using false customer data and, between 2003[...]

A client's legal action was dismissed on the grounds that she had failed to sufficiently allege the hypothetical scenario of how transactions would have unfolded if the bank had acted in accordance with its contractual obligations. She was suing her Swiss bank to claim reimbursement for a loss resulting from the sale of options on Russian shares (4A_657/2024 of September 1, 2025). In November 2021, a Bahamian company had sold put options on American Depository Receipts (ADRs) of shares in[...]

In its judgment 5A_802/2024 of 28 August 2025 (intended for publication), the Federal Supreme Court ruled on the question of whether freezing orders issued on the basis of the Ordinance on Measures in Connection with the Situation in Ukraine (Ukraine Ordinance) take precedence over enforcement under the Federal Debt Enforcement and Bankruptcy Act (LP). In July 2024, the Zurich Debt Enforcement Office issued a decision suspending enforcement proceedings initiated under the DEBA. The proceedings concerned assets that were also frozen[...]

In a recent judgment intended for publication (judgment 2C_597/2024 of 16 September 2025), the Federal Court confirmed the liquidation of a company that had carried out the activity of an issuing house (see Art. 3 para. 2 aOBVM) (now a securities house, see Art. 44 para. 1 let. c LEFin) without authorisation. Company A, founded in 2015 by C, is active in the sale of subscriptions for recyclable goods. Shortly after the company was founded, C sold 80% of the[...]

In its ruling B-2334/2023 of October 1, 2025, the FAC issued a partial decision overturning FINMA's decision of March 19, 2023, ordering the write-down of hybrid loans recognized as additional tier 1 (AT1) capital. This is an important step in what promises to be a long legal saga. This commentary is an exception to the usual practice regarding the length of the text, given the importance and scope of the judgment. This decision will also be discussed at the 2025[...]