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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.

Term-Nr.: 505

German: Retrozessionen (692)

Source: Swiss Fund Guide 2010 m. e. E., 20.04.2010

Notice: The contents of this terminology collection Lawpedia® with a focus on business law (especially financial market law) have been researched with great care and compiled on the basis of an extensive flash card, training materials and literature. The various sources (as far as they could be found) can be found in the abbreviations and source references. References to other sources are welcome. Despite the care taken, the provider cannot accept any liability for the accuracy, completeness and topicality of the information provided. The information is of a general nature in particular and does not constitute legal advice in individual cases.

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