Retrocessions: Claims from Swiss Banks – Don’t Leave Money on the Table
Retrocessions were a hidden fee certain Swiss funds paid banks to funnel the banks’ clients into specific investment vehicles. This fee was hidden from the clients. The Swiss courts have issued various rulings between 2006 and 2017 relating to the refundability of the payments to the clients. The 2017 ruling set the statutory limitation period at ten years to make a claim against the banks.
We have recently met a company assisting people with possible claims named Liti-Link. You can read about this issue on their website via this link: https://www.litilink.com/en/retroback/retrocessions.
If you had a Swiss investment account (including insurance wrappers) and made investments during the years 2010-2013 in certain funds through Swiss banks you may have a claim.
Keep in mind, due to the cost of application, Liti-Link generally will only look at cases where the invested amount during the years in question is above CHF 200K. It should also be noted that if Liti-Link takes your case on, they are able to obtain all required documentation directly from the Swiss bank, and therefore, your efforts required in the process are very limited.
Assuming Liti-Link takes on your case, they will effectively purchase your claim against the bank. Upon a successful claim, you will receive 60% of the final net proceeds of the claim. If they are unsuccessful, you will not be out of pocket any money.
Please note that refunds from this process may be taxable for U.S. income tax purposes and you should consult your US tax preparer to determine the correct treatment. Contact us if you need assistance.