The investor has two “options” if bankruptcy proceedings are opened against the investment adviser:
- He can apply for a segregation order on the securities acquired for his name and account [if the actual stock of securities is equal to or even greater than the nominal stock of securities there is a good chance that the liquidator will be obliged to approve the investor’s claim to ownership]
- Possibly: If the investor’s securities are no longer available, or are only available in part, he may register his demand for compensation for loss.
The individual creditor is entitled to participate in bankruptcy proceedings; in particular, in accordance with Article 260 of Swiss Debt Enforcement and Bankruptcy Law (SchKG), he can arrange to pursue his own claims if the liquidator does not wish to pursue such claims on behalf and for the account of the creditors as a whole.
- Usually none.
- Generally protracted [poor information base (advisers usually go into hiding), complex aggregation, partly in the case of foreign banks, coordination of ownership claims and claims for payment etc.]