Overview
- The Federal Administrative Court issued a partial ruling that revoked FINMA’s 2023 decree in a test case but did not order a reversal or compensation.
- Roughly 3,000 related complaints are suspended until the revocation becomes final, extending the legal timeline for resolution.
- The court found no clear legal basis for the wipeout, saying bondholders’ property rights were seriously interfered with.
- Judges said the contractual trigger for a write-off was not met and identified defects in the emergency ordinance’s Article 5a.
- FINMA and the finance ministry are reviewing the decision as FINMA prepares an appeal within 30 days; UBS shares fell over 3.5% and prices for AT1 claims rose to about 22 cents on the dollar.