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Swiss Retrocessions - A personal perspective

, 04/06/2020

In the second article of a two part look at what Swiss Retrocessions are and what they mean for UK HNWs, a former client of a Swiss private bank confidentially communicates what the process is like from a personal perspective… 

I made my Swiss account disclosures (WDF) around two years ago and despite working in finance all my life had never heard about Swiss Retrocession claims. Neither it turned out did the large accountancy firm who assisted with my disclosure. 

I came across it in a June 2019 FT article and after some research settled on Liti-link, a company established solely to process these claims. All these accounts had been closed for a number of years. I was to learn later that active accounts tend to be settled quicker.

Individuals can pursue the claims independently, but I spoke to several people who warned me against this - stonewalling by the banks is common and going through Swiss lawyers can prove very expensive with no end result.

The process was simple – this is especially relevant as claimants can be old and also lack detail on their accounts. I sold my claim to Liti-link with a 60/40 split (client favour) on any successful claim, no fee for an unsuccessful claim. Name, address, and the bank involved were required. An account number is helpful but not essential and then a copy of passport (Swiss court requirement). This is enough to have your claim time stamped (vital so you lose no more of your claim) and for the bank to open up regarding the Retrocession fees.

My family was claiming on around 12 accounts at five different banks - a mixture of trusts and individual accounts. The trusts required more paperwork on my side but nothing further was required on the individual accounts.

These claims are now being settled. On my personal account there were no Retrocessions (option dealing carried no kickbacks) – I was not charged anything. But other accounts where hedge funds and structured products were involved have seen high retrocessions being found in some cases up to three percent of account value.

The banks involved reacted differently. One settled immediately. A notoriously difficult bank is holding out and that may go to court. I was told by Liti-link that 95 percent of cases are settled pre court and that there is a good chance that settlement is reached before the court date.

The process has taken 6-9 months so far and the concerns I had at the start of possible complexity proved unfounded. It was a painless process and I know speaking to those who tried to claim after the 2012 ruling that it is simpler now due to the limited specialists who help clients out.

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