Are my assets protected against bankruptcy?

In the event of True Wealth AG going bankrupt, your investments will remain with the account-holding bank until you instruct it to close your account and securities account or transfer the asset management mandate to another wealth manager. Your securities will be recorded as special assets at the account-holding bank. This means that, in the hypothetical event of the account-holding bank going bankrupt, they will not fall into the bank's bankruptcy estate but will remain your property. Only cash holdings would fall into the bankruptcy estate. The first CHF 100'000 of your cash holdings are covered by deposit insurance.

Cash deposits with the custodian bank Basellandschaftliche Kantonalbank (BLKB) are also covered by an unlimited state guarantee, which means that the canton of Basel-Landschaft is liable for deposits with BLKB in the event of bankruptcy. This also applies to cash deposits in pillar 3a, which are deposited with the Vorsorgestiftung 3a Digital pension fund via BLKB.

However, in the event of a systemic bankruptcy of several banks at the same time, the deposit guarantee may reach its limits. For this reason, our portfolio proposals generally contain only a small cash ratio of around one percent, which we require for portfolio technical reasons. For risk-averse investors, we use an ETF on short-term Swiss government bonds («Eidgenossen») in addition to the government-guaranteed demand deposits at BLKB.