LEGAL UPDATE : THREE SWISS LEGAL DEVELOPMENTS REGARDING COMMISSIONS/RETROCESSIONS

OBERSON ABELS has published a short note (Legal Update) which addresses three recent Swiss legal developments regarding commissions/retrocessions :

1. Civil law : The Swiss Supreme Court has ruled that the statute of limitations applicable to the client’s restitution claim is 10 years. This 10-year period starts running as of the day on which the retrocessions are received by the principal (typically a financial intermediary).

2. Criminal law : The payment and receipt of commissions/retrocessions need to be carefully analyzed under the Swiss rules on the (active/passive) private bribery, which have been significantly expanded since July 2016.

3. Corporate law : In November 2016, the Swiss Government proposed an overhaul of Swiss corporate law. The governmental proposal includes a new transparency requirement, whereby Swiss legal entities active in (i) mining, oil and gas extraction and (ii) primary forest logging, would be required to publish a report disclosing all payments made to non-Swiss governments in excess of CHF 100’000 (per accounting year).

Please do not hesitate to send an email to news@obersonabels.com should you wish to obtain a copy of this Legal Update.