FlowBank Ltd is making progress in its liquidation process, with steps taken to repay creditors and clients. As of November 30, 2024, the bank has repaid CHF 49.7 million, covering 91.3% of secured deposits. However, 2,609 customers have yet to claim their deposits.
The transfer and sale of securities are progressing, with 27,981 out of 39,640 lines successfully transferred or sold. The bank offers clients a platform to sell securities, with cash transfers available in EUR or CHF.
FlowBank Seeks Buyers for Stake
As of October 31, 2024, FlowBank’s asset inventory is valued at approximately CHF 360 million, including deposits with the Swiss National Bank and other banks. The liquidation team is also looking for buyers for the bank’s stake in London Capital Group.
Plans are in place for decommissioning IT infrastructure, with a target completion date of mid-2025. Efforts to return assets to clients continue, while office leases and employee contracts are being managed.
Earlier, Finance Magnates reported that the liquidators of FlowBank launched a new platform to allow clients to sell their securities directly before November 15, 2024.
Walder Wyss facilitated client access to the platform for securities liquidation until the specified date, aiming to speed up cash retrieval and avoid the more time-consuming process of transferring securities.
The liquidators warned that failure to act could cause delays in accessing funds. Clients are instructed to log in using their regular credentials to initiate sales.
FINMA Revokes FlowBank License
Switzerland’s Financial Market Supervisory Authority (FINMA) revoked FlowBank's operational license on June 13, 2024, and began bankruptcy proceedings.
The regulatory action followed an investigation that began in October 2021, focusing on alleged violations of supervisory laws, particularly regarding capital requirements, organizational adequacy, and risk management.
Despite the appointment of an external auditor in October 2022, FINMA claimed that the bank continued to breach capital ratio requirements and showed deficiencies in several areas of its operations.
