In its decision of October 30, 2012 the Swiss Federal Court was asked to rule on a judgment of the Zurich High Court. The Zurich court basically held that asset managers are obliged to pass-on to their clients distribution fees received from third-party providers of investment funds if such fees are paid on the basis of the volume of units placed with the asset manager’s clients and if the clients did not validly waive their entitlements to such kick-backs. The Federal Court confirmed such judgment. Contrary to the Zurich High Court though, the Federal Court further held that also volume-dependent distribution fees paid to an asset manager from investment fund providers belonging to the same group of companies must be passed-on to the clients absent valid waivers.

To read the full article in German, please click here.


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