If a bank or securities dealer is declared bankrupt, deposits up to a maximum of CHF 100,000 per client are secured. This applies to all deposits, including those made at foreign branches.
If the bankrupt institution has sufficient liquid assets, secured deposits of up to CHF 100,000 per client will be paid out immediately at Swiss and foreign branches, irrespective of the ordinary schedule of claims.
If it is not immediately possible to pay out secured deposits in full, advance payments will be made in respect of client deposits held at Swiss branches by the depositor protection scheme, to which the claim is transferred in the amount paid out on behalf of the bank or securities dealer.
In addition to ordinary bank deposits, deposits made at bank foundations and vested benefits foundations are secured up to CHF 100,000. However, such deposits are not covered by the depositor protection scheme and therefore can only be recovered through the usual scheduling of claims.
Deposits that are not secured may where possible be recovered through bankruptcy proceeding as liquidation dividends.
Unlike deposits, custody account assets (e.g. shares and fund units) belong to the client. By law, they are segregated entirely (i.e. not included in the bankruptcy proceedings) and returned to the client. This is also the case with client-owned precious metals deposited physically at a bank.