When an asset manager sells external products (funds, structured products, new emissions etc.) or transacts business on the stock market via a bank, he receives kickbacks from the banks and/or fund companies. Banks also receive kickbacks when they purchase external products for their clients. According to Art. 400 par. 1 of the Law of Obligations, it has been clear for decades that kickbacks, finder’s fees (i.e. payments made for procuring business) and similar payments are actually owed to the client. A federal court ruling of March 2006 goes into more detail, saying that an asset manager may only retain kickbacks if the client expressly authorises him to do so and is given concrete information concerning the scope of his waiver.
German: Retrozessionen (692)