UBS provides update on court ruling on Credit Suisse AT1 capital instruments

The company said, “In proceedings initiated by certain holders of Credit Suisse Group AG additional tier 1 instruments against FINMA, which challenged FINMA’s decree of 19 March 2023 ordering a write-off of CHF 16bn principal amount of Credit Suisse Group AG’s AT1 instruments, the Swiss Federal Administrative Court published a partial decision in October 2025. The court determined that FINMA’s order lacked a sufficient legal basis and revoked FINMA’s decree. FINMA has stated it will appeal the decision to the Swiss Federal Supreme Court. UBS (UBS) intends to appeal in order to ensure that our perspective on the relevant facts relating to the acquisition is considered by the court, as well as to safeguard the credibility of AT1 instruments for the key role they play in bank recovery and resolution. The decision did not order any remedy. The court will only consider what remedies, if any, are appropriate at a later stage and in case the Swiss Federal Supreme Court confirms the decision in an appeal. The write-down of the Credit Suisse AT1 instruments was an integral part of the rescue transaction. UBS believes that the write-down was in accordance with the contractual terms of the AT1 instruments and the applicable law and that FINMA’s decree was lawful. The Parliamentary Inquiry Committee report concluded that Credit Suisse would have been insolvent and could not have opened for business on Monday, 20 March 2023, without the rescue package.”