Categories: Media and News

Churning: practical guidelines for portfolio managers


September 2025
Frédérique Bensahel and Aurélie Moyal-Azra


Churning has been in the news following a ruling in a criminal case rendered by the Swiss Supreme Court in 2024. In this ruling, our High Court established objective criteria for determining the existence of churning. Churning occurs when a portfolio manager reinvests the assets entrusted to him by his client too frequently, motivated by his variable remuneration rather than the client’s interests. It is contrary to the manager’s duties towards his client and constitutes the criminal offence of disloyal management. Such practice may also give rise to civil and regulatory liability on the part of the manager.

Yann Bellini

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