Is securities lending allowed in Switzerland?

Here you will find the right answers

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

Please login in or sign up to participate in the forum.
 
avatar
  • BenutzernameMoneyland User Questions
  • Status Member
  • Registriert seit1/27/17
  • Beiträge2142

I just found a clause in my custody account contract which says that my broker (the bank) is allowed to lend out my securities to third parties. Is securities lending allowed by FINMA? Is it legal in Switzerland?

 
avatar
  • BenutzernameMoneyguru von moneyland.ch
  • OrtSchweiz
  • Status Expert
  • Registriert seit8/4/15
  • Beiträge4063

Hi there,

Securities lending is generally legal in Switzerland, and is not prohibited by FINMA. However, you as an investor can choose whether or not to sign a contract which allows securities lending.

Always study a brokerage agreement carefully before you sign. If the contract allows for securities lending, ask the broker to remove relevant clauses - unless you are ok with having your securities lent out to third parties.

Best regards from Moneyguru

More on this topic:
Bank failures: What happens to assets?
Swiss broker comparison

Request now for free

Cheap bank accounts with card

Swiss digital bank

Radicant

  • 1% interest on your everyday account

  • Best exchange rates

  • 1% of card spending as saveback in the investment portfolio

Swiss digital bank

Alpian

  • CHF 100 welcome bonus

  • Favorable foreign exchange rates

  • Multi-currency account with Visa card (CHF, EUR, USD, GBP) 

Free bank account

Yuh

  • No account fees

  • Banking partner: Swissquote & Postfinance

  • CHF 20 trading credit with code «YUHMONEYLAND»

Online private account

UBS key4

  • 50 KeyClub points as a welcome gift

  • Online private account with debit card

Request now for free

Cheap bank accounts with card

Swiss digital bank

Radicant

  • 1% interest on your everyday account

  • Best exchange rates

  • 1% of card spending as saveback in the investment portfolio

Swiss digital bank

Alpian

  • CHF 100 welcome bonus

  • Favorable foreign exchange rates

  • Multi-currency account with Visa card (CHF, EUR, USD, GBP) 

Free bank account

Yuh

  • No account fees

  • Banking partner: Swissquote & Postfinance

  • CHF 20 trading credit with code «YUHMONEYLAND»

Online private account

UBS key4

  • 50 KeyClub points as a welcome gift

  • Online private account with debit card

Deal of the Day
×
Swiss digital bank

Radicant

1% interest on your everyday account