FlowBank Ltd. has made significant strides in its liquidation process, with CHF 49.7 million reimbursed to creditors and clients as of November 30, 2024. This amount represents 91.3% of secured deposits. Despite the progress, 2,609 customers still need to claim their deposits, and the bank’s liquidation team continues efforts to contact and assist them.
Asset Transfers and Securities Sales
The transfer and sale of securities are also progressing steadily. Out of 39,640 securities lines, 27,981 have been successfully transferred or sold. FlowBank has provided clients with a platform to sell their securities directly, with proceeds available for transfer in EUR or CHF. This initiative aims to expedite the liquidation process and ensure timely reimbursements.
FlowBank’s Asset Valuation and Stake Sale
As of October 31, 2024, FlowBank’s total asset inventory stands at approximately CHF 360 million. These assets include deposits with the Swiss National Bank and other institutions. The liquidation team is actively seeking buyers for FlowBank’s stake in London Capital Group, adding to the ongoing efforts to manage and liquidate remaining assets.
IT Infrastructure Decommissioning and Operational Wind-Down
The bank’s IT infrastructure is set to be decommissioned by mid-2025, marking another milestone in its operational wind-down. Simultaneously, the liquidation team is handling office leases and employee contracts to ensure an orderly closure of the bank’s activities.
Client Advisory: Platform for Securities Liquidation
Earlier, FlowBank launched a new platform to help clients liquidate their securities before the November 15, 2024, deadline. Facilitated by Walder Wyss, this platform was designed to accelerate cash retrieval and bypass the slower process of transferring securities. Clients were advised to log in using their regular credentials to complete transactions promptly. The liquidators cautioned that delays in action could result in longer waiting times for fund access.
Regulatory Background and License Revocation
FlowBank’s challenges began with regulatory scrutiny from Switzerland’s Financial Market Supervisory Authority (FINMA), which revoked the bank’s operational license on June 13, 2024, and initiated bankruptcy proceedings. The investigation, which started in October 2021, uncovered violations of supervisory laws, including inadequate capital ratios, organizational shortcomings, and deficient risk management practices.
Despite appointing an external auditor in October 2022, FlowBank failed to address these issues sufficiently, leading to FINMA’s decisive action. The liquidation process aims to rectify these shortcomings by returning assets to clients and ensuring compliance with regulatory standards.
