UBS charges pension funds to hold their liquid assets

Pension funds are complaining about 'negative interest' charges for holding liquid assets in accounts at Switzerland’s largest bank UBS. +Get the most important news from Switzerland in your inbox UBS's letter is quite significant. At the end of June, the bank informed its institutional clients – primarily pension funds and insurance companies – in writing that it would be forced to charge interest on transaction accounts at -0.2% starting in mid-July. This was because the Swiss National Bank had lowered its key interest rate to 0%. + 'Switzerland must prepare to return to negative interest rates' Pension fund holders who park liquid assets with UBS have been paying negative interest again since mid-July – that is, CHF2,000 on CHF1 million held in cash. UBS confirmed this upon request but said the -0.2% fee is technically not negative interest, but rather a fee that arises because UBS must keep liquidity available for institutional clients at all times. UBS says these additional ... Full story here Are you the author? Previous post See more for 3.) Swissinfo Business and Economy Next post
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