Due Diligence Obligations

Swiss civil law requires that every person in Switzerland must exercise diligence and consideration in their everyday dealings with other people.

This due diligence obligation is also required of insurance policyholders, if they want to be able to receive insurance coverage.

If you, as the insured person, fail to observe basic rules relating to the prevention of losses, you may lose your eligibility to receive insurance benefits.

In insurance jargon, a failure in your obligation to take sufficient care to avoid losses, constitutes a “breach of contract”.

The duty to perform due diligence is also a key obligation in banking and wealth management. Banks and wealth managers are obligated to exercise care in the way in which they manage customer assets.

This obligation extends to a wealth manager’s organization and requires that their investment policies match the investment goals of customers.

Appropriate risk management practices also make up part of a bank’s due diligence obligations.

More on this topic:
Swiss insurance coverage comparison
Private banking comparison

Request now for free

Cheap bank accounts with card

Free bank account

Yuh

  • No account fees

  • Banking partner: Swissquote & Postfinance

  • CHF 20 trading credit with code «YUHMONEYLAND»

Swiss digital bank

Alpian

  • Multi-currency account with Visa card (CHF, EUR, USD, GBP)

  • Favorable foreign exchange rates

  • CHF 100 welcome bonus

Online private account

UBS key4

  • 50 KeyClub points as a welcome gift

  • Online private account with debit card

Swiss bank packages comparison

Find the best bank offer now

Compare now
Trading platforms

Brokers with low fees

Swiss Broker

FlowBank

  • Swiss online bank

  • No additional exchange charges

  • No transaction fees for Swiss equities

Swiss Broker

Saxo Bank Switzerland

  • Swiss online bank

  • Favorable prices stock trading

  • High account interest rates

Swiss Broker

Cornèrtrader

  • Swiss online bank

  • No custody fees for stocks

  • Free market research and trading signals

Request now for free

Leading credit cards

Free credit card

Swisscard Cashback Cards Amex

  • No annual fees

  • Two cards Amex & Visa/Mastercard

  • With cash back

Free credit card

Migros Cumulus Visa

  • No annual fees

  • With Cumulus points

  • Without foreign currency fees

Expert Benjamin Manz
Benjamin Manz is CEO of moneyland.ch and an independent expert on banking and finance.