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Glossary

Investor Protection

Investor protection refers to the regulatory mechanisms that protect the clients of financial institutions. In Switzerland, there are four core mechanisms: deposit protection, the segregation of custody assets, the rules of conduct under FinSA, and mandatory affiliation with an ombudsman. None of them cover market risk.

At a glance

  • Deposit protection covers balances of up to CHF 100,000 per client and per bank. Balances from pillar 3a and vested benefits are not covered. In bankruptcy they are treated as privileged up to CHF 100,000 per client and per pension foundation, in addition to and independently of the other secured and privileged balances at the same bank. That is a question of rank under bankruptcy law and not a form of cover (Source: esisuisse, as of 2026).
  • The system is capped: banks fund it with a maximum of CHF 7.9 billion, equivalent to 1.6 percent of all insured deposits in Switzerland. Each bank must additionally hold Swiss-domiciled assets equal to at least 125 percent of its secured and privileged balances (Source: esisuisse, as of 2026).
  • Securities held in custody are segregated assets and do not form part of the bankruptcy estate in the event of a bank's insolvency. No upper limit applies to them, because they were never the bank's property. Only cash balances are subject to the CHF 100,000 limit.
  • Investor protection covers the institution and the process, not the investment outcome. None of these mechanisms compensates for market losses.

Frequently asked questions

No. The regulatory mechanisms apply in the event of an institution's default or misconduct, not when markets decline. If a portfolio loses value because prices fall, no regulation compensates for that. Protection concerns the provider's organisation and how it must treat clients.
No, that is a common misconception. The CHF 100,000 figure applies to deposit protection, that is, cash balances. Securities held in custody are legally segregated and remain yours; in the event of insolvency, they can be transferred to another institution. Only the cash portion is capped.

Sources: FINMA · Systematische Rechtssammlung (fedlex) · esisuisse