Glossary
Retrocession
A Retrocession is a payment a financial services provider receives from third parties, such as a fund company or bank, for distributing their products or holding them in client portfolios. Such payments can create conflicts of interest because they may influence product selection.
At a glance
01
The Federal Supreme Court has established that retrocessions are in principle owed to the client (source: BGE 137 III 393).
02
A client's waiver of retrocessions is only valid under strict conditions.
03
Fee-Based Advice models deliberately forgo retrocessions.
Frequently asked questions
Yes. Under Swiss law, retrocessions received must be disclosed and, in principle, passed on to the client, unless the client has validly waived this right.
Part of the topic
FinanzberatungSources: FINMA · Systematische Rechtssammlung (fedlex)