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Retrocessions in Execution-Only Relationships: Case Note Now Freely Available in Full
News
21 October 2026
Our colleague Martina Reber’s case note on the Swiss Federal Supreme Court’s decision FSD 152 III 240, published in Aktuelle Juristische Praxis, is now freely available in full.
In its new landmark decision, the Swiss Federal Supreme Court has clarified the previously disputed question of whether retrocessions must be surrendered in execution-only relationships. In the case at hand, the Court denied an obligation to surrender the retrocessions on the grounds that the distribution fees received were not capable of giving rise to a conflict of interest on the part of the bank.
In her case note, our colleague Martina Reber examines the decision in the context of the Court's previous case law on retrocessions and demonstrates how the ruling significantly narrows the scope of the duty to surrender benefits received under Article 400 para. 1 of the Swiss Code of Obligations (CO). She critically assesses the Court's interpretative approach and explains why the wording, legislative history and systematic interpretation of Article 400 para. 1 CO support a broader understanding of the duty to surrender such benefits.
She also examines the implications of the decision from a regulatory perspective and explains why the Federal Supreme Court's statements concerning Article 26 of the Swiss Financial Services Act (FinSA) do not oblige FINMA to change its existing supervisory practice.
The full case note is available here:
An article by Martina Reber
