English

Deposit guarantee for securities in Swiss custody accounts

Here you will find the right answers

Forum Banking Forum Accounts & Interest Deposit guarantee for securities in Swiss custody accounts

Your web browser does not support JavaScript, or you have temporarily disabled scripting. This site needs JavaScript to function correctly.

About Moneyland Forum

The moneyland.ch forum lets you exchange knowledge on numerous topics related to money and get answers to your questions at any time. Join forum users and experts in discussions relating to banking, investment, insurance, retirement, telecom and everyday money topics.

Show categories

Forum

Categories

BenutzernameMoneyland User Questions
Status Member
Registriert seit1/27/17
Beiträge2142

April 10, 2017, 10:56:56 AM

Does the deposit guarantee for money placed in Swiss banks cover securities held in Swiss custody accounts as well?

BenutzernameMoneyguru von moneyland.ch
OrtSchweiz
Status Expert
Registriert seit8/4/15
Beiträge4079

April 10, 2017, 3:55:24 PM

Greetings,

The depositor protection scheme adminsitered by banking association Esissuisse covers money deposited into Swiss banks. This is necessary because money deposited in banks is not held by the bank, but rather invested in the bank. If the bank goes bankrupt, the money invested in the bank is largely lost.

Securities, on the other hand, are not invested in the bank (with the exception of the bank's own securities and funds). Custodian banks simply hold and administer securities on behalf of custody account holders. Because of this, there is no need to guarantee securities. These are segregated assets which remain the property of their owner when a custodian bank fails.

Best regards from Moneyguru

More on this topic:
Bank failures: What happens to your money?
Depositor protection explained
Wealth management risks explained
Swiss broker comparison