FNG Exclusive… FNG has learned that the liquidators of bankrupt Swiss neobank / neobroker FlowBank have been in contact with former clients of the company, encouraging them to sell any securities sitting in their accounts in order to expedite client refunds.

The liquidators, Swiss firm Walder Wyss, have enabled the customer area of the FlowBank website to enable clients to log in, and liquidate any securities in the account. Walder Wyss said they’re doing this as the transfer of securities directly to clients would prove to be a time-consuming and high-cost process, whereas the sale and transfer of cash is simpler and faster to accomplish.

In the note to clients, the liquidators said they encourage FlowBank clients to take advantage of this efficient solution to get their assets faster. Not taking action, said Walder Wyss, may result in additional delays.

FlowBank clients can complete the sale of their securities via the platform until 15th November 2024. At the end of this period, they will no longer be able to sell securities via the platform.

Regarding the disbursement of cash, once a client’s positions have been sold in full, the cash will be credited to a separate account and transferred to their account at another bank that designated by the client within a few days, in EUR or CHF, depending on the client’s choice.

The transfer of securities, whether manual or through the platform, will not be possible for a period of two weeks starting from the opening of the online platform for the sale of securities.

FlowBank was forced into bankruptcy by Swiss financial regulator FINMA in mid June, with FINMA stating at the time that FlowBank no longer had the minimum capital required for its business operations, with fears that the bank had become over-indebted.

FlowBank was established in 2020 by CEO Charles-Henri Sabet, who previously ran London based online broker LCG. Crypto investments company CoinShares owned an approximate 30% minority interest in FlowBank. While the company’s initial mandate was to focus on banking and investment activities, FlowBank eventually reverted to its “LCG roots” and was seen mainly promoting online CFD trading. FlowBank’s liquidators are still trying to find a buyer for LCG.