Time is running out for investors to reclaim up to SFr15bn ($15.4bn) in investment fund commissions that was pocketed by Swiss banks.
Swiss lenders historically received lucrative commissions from asset managers, whose products they pushed to their wealth management clients.
These rebates, which were as high as 2 per cent of assets in some cases, generated SFr4.2bn for banks in 2012, equivalent to 12.4 per cent of the sector’s profits, according to analysis by consultancy Finalix of data provided by the Swiss Bankers Association.
The practice came to an end in 2012 when Switzerland’s highest court banned banks from retaining commissions.
The ruling was significant for Switzerland’s largest banks, including UBS, Credit Suisse and Julius Baer, as it applied to commissions paid by a lender’s in-house asset management unit to its wealth division.