Information letter to the clients of FlowBank SA
Announcement to the creditors of FlowBank Ltd, in liquidation dated 28 August, 2024
To all FlowBank in liquidation creditors, please find here a downloadable PDF that summarises the current situation. View Document
In case of questions, please contact Customer Support by phone at +41 22 888 66 00 from 9:00am to 5:00pm CET.
Announcement to the clients of FlowBank Ltd, in liquidation dated 26 August, 2024
Following several requests and queries from clients of FlowBank Ltd. in liquidation (FlowBank), the liquidators wish to provide the following clarifications regarding the CFD account (AAAXXX.098) (the CFD Account):
The CFD Account is a separate account containing any gains or losses resulting from the closure of clients' CFD positions following the opening of the bankruptcy, i.e. on 13 June 2024 at 8:00 am.
Any positive balance credited to the CFD Account does not constitute a secured deposit within the meaning of art. 37a of Swiss Federal Act on Banks and Savings Banks (LB). This positive balance represents an ordinary debt of the bankrupt estate, which is automatically collocated in third class within the meaning of art. 219 para. 4 of the Swiss Federal Act on Debt Collection and Bankruptcy Proceedings (LP). This claim will be reimbursed for each client to the extent of the liquidation dividend.
In the event that the CFD Account shows a negative balance, this balance will be offset to the extent of the overdraft by means of the cash available on the cash account (AAAXXXX.001), in accordance with FlowBank's general right of offset.
In the event that a FlowBank client has (i) a securities and corporate actions account (AAAXXXX.099) with a negative balance and (ii) a CFD Account with a positive balance, the negative balance on the AAAXXXX.099 account is offset against the cash available on the CFD Account, in accordance with FlowBank's general right of set-off.
Regards,
For Flowbank Ltd. in liquidation,
Walder Wyss Ltd.
Announcement to the clients of FlowBank Ltd, in liquidation dated 24 July, 2024
The liquidators of FlowBank Ltd. in liquidation would like to inform you that the processing of client securities transfers may take several weeks due to the sheer quantity of requests received, combined with the complexity of executing these manual transfers. We would like you to note that whether you have submitted your request in the FlowBank Client Area or by email, your request has been well noted and we will process your transfer with the shortest delay possible.
In addition, we draw your attention to the fact that you must have a deposit account opened with a new banking institution in order to have your securities transfered.
We thank you for your patience during this time.
For Flowbank Ltd. in liquidation,
Walder Wyss Ltd.
Announcement to the clients of FlowBank Ltd. in liquidation dated 12 July 2024
The liquidators would like to inform you that as ofFriday, July 12th,you can request the transfer out of your securities in the FlowBank e-banking platform. Please note that the team will proceed with these transfer requests startingMonday, July 15th. Should you have any question regarding this process, please don’t hesitate to contact Customer Support by phone at+41 22 888 66 00.
Announcement to the clients of FlowBank Ltd. in liquidation dated 2 & 3 July 2024
- REIMBURsem*nT OF SECURED DEPOSITS
The liquidators would like to inform you that requests for reimbursem*nt of secured deposits can be made via the e-banking platform of FlowBank Ltd. in liquidation. The authentication system has been updated and now works as described in the link below:
>> New Procedure
Only clients who meet the following conditions can apply via the e-banking platform:
- The client is a natural person
- The client is both the sole holder and beneficial owner of an account with Flowbank Ltd. in liquidation
On the e-banking platform, clients are invited to mention a bank account they hold with another bank in order to receive their refund. A step-by-step guide to submitting a request through the e-banking platform can be found at the following link:
>> How to submit a request
Other clients (joint accounts, corporation, domiciliary companies) are invited to request a reimbursem*nt by sending an e-mail to [email protected], providing full details of an account at another bank to which the refund is to be made. These requests have to be processed manually, and therefore require more time than an e-banking request.
Only the portion of each client’s total cash assets equal to or less than CHF 100,000 constitutes a secured deposit and will be reimbursed at this stage.
- NEW STRUCTURE OF CUSTOMER ACCOUNTS AT FLOWBANK Ltd IN LIQUIDATION
The liquidators wish to inform you that the structure of customer accounts at FlowBank Ltd in liquidation has been modified as part of the liquidation process. Each account now has several sub-accounts, as follows:
- Cash account (AAAXXX.001): this is the main account containing each client’s cash with FlowBank Ltd in liquidation. Only cash held in this account is taken into account for repayment of preferential deposits.
- CFD gains account (AAAXXX.098): this account contains any liquid assets resulting from the closure of clients’ CFD positions following the opening of th bankruptcy proceedings, i.e. on 13 June 2024 at 8:00 am.
- Securities and corporate actions account (AAA.099): this account contains all client securities and cash resulting from corporate actions.
The former accounts held by certain client (.002, .003) remain visible, but their assets have been transferred to the above accounts.
To access these various sub-accounts, please click on the menu at the top of the screen on the e-banking platform and choose the sub-account of your choice, as described in the link below:
>> How to access your accounts
- FRAUD ATTEMPTS
The liquidators would also like to inform you of the following points regarding attempted fraud committed in connection with the liquidation of Flowbank Ltd. in liquidation:
- E-mails : E-mails to clients are sent exclusively from the liquidators' address [email protected] or from the bank's generic addresses [email protected], [email protected], [email protected], [email protected] and [email protected].
- Phone calls: In order to identify clients, the bank's customer service staff may contact them by telephone. The numbers used begin with +4122888. During these calls, the bank's staff may ask questions involving clients’ personal information such as IBAN number, account status or last transaction.
- Confidential information: Confidential information (passwords, credit card details, etc.) must never be revealed.
- Reporting: If you have any doubts about the authenticity of an e-mail, please forward it to [email protected]. The liquidators will try to reply as soon as possible.
For FlowBank Ltd. in liquidation,
Walder Wyss Ltd.
Announcement to the clients of FlowBank Ltd. in liquidation dated 26 June 2024
The liquidators would like to inform you of the following points concerning the procedure for the reimbursem*nt of the secured deposits:
From late afternoon on Thursday 27 June 2024, the e-banking platform of FlowBank Ltd. in liquidation will be reactivated in order to automate the procedure for the reimbursem*nt of the secured deposits. You will be informed individually by email when the process is opened. The authentication system has been updated and will follow the new procedures explained in the following link.
New Procedure
Clients holding cash assets on an account with FlowBank Ltd. in liquidation will be asked to indicate their transfer instructions (in particular the bank details of the account to which the payment is to be made). Please note that only the total amount of each client's cash assets equal to or less than CHF 100,000 constitutes a secured deposit and will be reimbursed at this stage. Payment will therefore be made within a few days.
For FlowBank Ltd. in liquidation,
Walder Wyss Ltd.
Announcement to the clients of FlowBank Ltd. in liquidation dated 25 June 2024
The liquidators would like to inform you that you now have a “read-only” access to the e-banking platform of FlowBank Ltd. in liquidation (https://my.flowbank.com/). As a result, you are now able to view your account balance. In this context, we remind you that the following actions have been taken with effect as of the opening of bankruptcy of FlowBank Ltd. in liquidation, i.e. on 13 June 2024 at 8.00 a.m. (the Opening of the Bankruptcy):
- CFD positions have been closed on the Opening of the Bankruptcy; deposits in foreign currencies have been converted into Swiss francs (CHF) at the rates applicable at the Opening of the Bankruptcy.
Please note that subsequent changes may be necessary and that this will have an impact on the amounts displayed on the e-banking platform.
Further information will follow on Wednesday 26 June 2024 regarding the access to the platform for the payment of the secured deposits.
For FlowBank Ltd. in liquidation,
Walder Wyss Ltd.
Additional information for clients of Flowbank SA in liquidation as of June 21, 2024
The liquidators would like to inform clients of the following:
- We would like to draw your attention to the fact that fraudulent people are trying to take advantage of the situation by pretending to be Flowbank SA in liquidation, in particular by stating that accounts are now open and that transfers are once again possible. This statement is false and does not come from liquidators: access to Flowbank platform is blocked. Any request for payment in exchange for a refund is fraudulent and should not be acted upon. We also advise you not to click on any links or open any attachments contained in such e-mails.
- The liquidators are finalizing the implementation of a “read only” access on the platform so that each client can be informed of the balance of their accounts, without however being able to give banking orders. You will be informed as soon as the system is in place.
- The liquidators are finalizing the implementation of a reliable, efficient and automated system for reimbursing privileged deposits (liquid assets under CHF 100,000). You will be informed individually by the liquidators in the coming days as to how this will be done, bearing in mind that all repayments will be made in CHF.
- Securities owned by clients will be returned, and not sold. Details of the transfer procedure will be communicated shortly.
- As Flowbank SA in liquidation no longer holds a banking license, it is unable to carry out banking operations (sale of securities, transfer orders) on behalf of its cliens.
- Any questions can be sent to the following e-mail address: [email protected]. Given the volume of e-mails to be processed, individual replies to e-mails are not currently possible.
Additional information to clients of FlowBank Ltd. in liquidation as of 17 June 2024:
The liquidators inform you that the following actions have been taken with effect as of the opening of bankruptcy of FlowBank Ltd. in liquidation, i.e. on 13 June 2024 at 8.00 a.m. (the Opening of the Bankruptcy):
- closure of CFD positions on the Opening of the Bankruptcy;
- conversion of deposits in foreign currencies into Swiss francs (CHF) at the rates applicable at the Opening of the Bankruptcy.
The liquidators are currently working on the payment of secured deposits as soon as possible.
In the meantime, the liquidators draw your attention to the fact that no payment or transfers, including standing orders, can be made from your account FlowBank Ltd. in liquidation.
You are therefore invited to provide all your potential counterparties with the bank details of an account that you hold with another bank in order to receive your future payments.
For FlowBank Ltd. in liquidation,
Walder Wyss Ltd.
1. General situation
By decision of 12 June 2024, the Swiss Financial Market Supervisory Authority (FINMA) opened bankruptcy proceedings against FlowBank SA (the Bank) with effect from 13 June 2024 at 8:00 a.m. As a consequence, the FINMA withdrew the license of the Bank as bank and securities dealer.
The FINMA appointed Walder Wyss SA, succursale de Genève, 14 rue du Rhône, P.O Box, 1211 Geneva 3 as bankruptcy liquidators (the Liquidators). The place of jurisdiction for the bankruptcy is the Bank’s head office in Geneva.
The commercial activities of the Bank stopped at the opening of the bankruptcy. The Bank is no longer authorised to carry out banking transactions or to act as securities dealer. In this regard, all payments, purchases and sales of securities can not longer be made. The Bank and its governing bodies are strictly prohibited from carrying out any legal act without the approval of the Liquidators.
2. Secured deposits
Client’s cash deposited with the Bank in Switzerland in an account opened in their name will be reimbursed in the short term up to a maximum amount of CHF 100,000 (one hundred thousand Swiss francs).
The Liquidators are currently preparing the repayment terms and conditions, which will be communicated to the clients as soon as possible.
3. Segregation of custody assets
Custody assets according to Article 16 of the Banking Act (such as shares, bonds, funds, certificates etc.) remain the property of the clients, do not form part of the bankrupt estate and will be transferred to them subject to any compensation or restrictions.
The Liquidators are currently preparing the modalities of transfer, which will be communicated to the clients as soon as possible.
4. Termination of contracts entered into with the Bank
All agreements between the Bank and its clients, such as contracts for differences, contracts linked to financial instruments and derivative contracts, are terminated with immediate effect.
5. No takeover of contracts
Unless the Liquidators declare otherwise, contracts of duration (such as lease or leasing contracts) will not be taken over by the bankrupt estate.
6. Informations to the clients of the Bank
The Liquidators will shortly be sending the Bank’s clients a circular describing the procedure for repayment of the secured deposits and the transfer of the custody assets.
For any additional information, the Liquidators invite the clients to refer to the website of the FINMA or to contact them by e-mail at the following address : [email protected]. A dedicated website and hotline will be available as soon as possible.
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For FlowBank SA in liquidation, Walder Wyss SA
