FlowBank SA, a Geneva-based online brokerage and trading bank, has entered bankruptcy proceedings as mandated by the Swiss Financial Market Supervisory Authority (FINMA). Effective from 13 June 2024 at 8:00 a.m., FINMA revoked FlowBank SA's licenses as a bank and securities dealer, prompting an immediate cessation of all commercial activities.

Client Reimbursement and Asset Transfer

Clients with cash deposits held in Swiss accounts under their names are eligible for reimbursement up to CHF 100,000 per client in the short term. The liquidators are preparing the terms and conditions for reimbursement, which will be communicated to clients.

Custody assets, such as shares, bonds, funds, and certificates held by clients, remain separate from the bankrupt estate and will be transferred back to clients, subject to potential compensation or conditions determined by the liquidators.

Walder Wyss SA, based in Geneva, has been appointed as the bankruptcy liquidators to oversee the dissolution process. The jurisdiction for these proceedings is established at FlowBank's headquarters in Geneva.

FlowBank SA is prohibited from conducting banking transactions or acting as a securities dealer without explicit approval from the liquidators. This prohibition extends to all financial activities, including payments , securities trades, and legal undertakings.

Since October 2021, FlowBank SA has been under scrutiny by FINMA due to serious breaches of supervisory law, specifically concerning capital requirements, organizational adequacy, and risk management, as reported by Finance Magnates.

Despite the implementation of extensive measures and the appointment of an independent auditor in October 2022, the bank persisted in violating capital ratio requirements and exhibited ongoing deficiencies across its operations.

Contractual Obligations and Client Impact

All agreements between FlowBank SA and its clients, including contracts for financial instruments and derivatives, are terminated with immediate effect. Clients with contracts of duration, such as leases, are informed that these will not automatically transfer to the bankrupt estate unless specified by the liquidators.

Clients and stakeholders are advised to await further communications from Walder Wyss SA regarding the reimbursement process, asset transfer procedures, and implications for terminated contracts.