Swiss Deposit Protection

The “Swiss Banks’ and Securities Dealers’ Depositor Protection Association” is responsible for overseeing the self-regulation prescribed by the Banking Act for the purpose of protecting the preferential deposits held with the branches of Swiss banks and securities dealers.

If the Federal Financial Market Supervisory Authority, FINMA (previously the Swiss Federal Banking Commission) initiates protective measures or forced liquidation proceedings against a bank or securities dealer, the members of the association provide funds so that the deposits deemed preferential under the Banking Act can be paid out as quickly as possible to the depositors. In accordance with the measures agreed by legislators to increase depositor protection, preferential status has, since 20 December 2008, been extended to include deposits of up to CHF 100,000 per depositor. The maximum amount that the members of our association are required to contribute is limited to CHF 6 billion.

All banks and securities dealers with a branch in Switzerland that accept preferential deposits are members of the association. Swiss law stipulates that deposits held with these branches are protected under the depositor protection scheme.

By guaranteeing payout of the preferential deposits, the Swiss Banks’ and Securities Dealers’ Depositor Protection Association plays an important role in protecting creditors. The Association makes a key contribution to the reputation and stability of the Swiss financial centre.