The Swiss Federal Administrative Court issued a partial ruling on October 13, 2025, which put up for debate the legality associated with deeming Credit Suisse’s Additional Tier 1 (AT1) bonds as worthless. The ruling came in response to an appeal lodged by Switzerland’s financial regulator, Finma. Now, UBS has declared its intention to lodge their appeal as well.
In line with the release of its results for the third quarter of 2025, UBS announced its plan to challenge the partial ruling of the Federal Administrative Court relating to the AT1 litigation. The bank clarified that this step is being undertaken with the aim of ensuring that the court considers its perspective regarding the relevant facts associated with the acquisition of the AT1 bonds.
UBS also emphasized that the appeal is essential in order to preserve the credibility of AT1 instruments, considering the integral role these play in the resolution and recovery process of banks.
UBS highlighted that the devaluation of Credit Suisse’s AT1 instruments was an important part of the bailout package. The bank maintained that the devaluation was in line with the contractual terms of the AT1 instruments and the applicable legislation. It also asserted that the decision taken by Finma was lawful.
UBS pointed to the conclusions reached by the Parliamentary Inquiry Commission, which determined that Credit Suisse would have faced insolvency without the bailout package and would not have been able to continue its operations after Monday, March 20, 2023.
In October, the Federal Administrative Court ruled that the legal foundation for Finma’s decision to deem Credit Suisse’s AT1 bonds as worthless was inadequate. Finma has already taken a step to challenge this decision at the Federal Supreme Court, and UBS has now announced its decision to do the same.
UBS has also addressed several questions related to the AT1 issue on its FAQ page.
Why is UBS appealing the ruling?
UBS is appealing the ruling to ensure the court considers their view regarding the acquisition of the AT1 bonds and to safeguard the credibility of AT1 instruments due to their key role in the resolution and recovery of banks.
Why was the devaluation of Credit Suisse’s AT1 instruments a critical part of the bailout package?
The devaluation was crucial as it was in line with the contractual terms of the AT1 instruments and the applicable law. Without the bailout package, Credit Suisse would have faced insolvency.
What was Finma’s decision regarding Credit Suisse’s AT1 bonds?
Finma decided to render Credit Suisse’s AT1 bonds worthless. However, the Federal Administrative Court ruled that the legal basis for this decision was insufficient. Finma and UBS have both decided to appeal this decision.
