FlowBank Liquidation Update. Walder Wyss Ltd, the liquidator handling the bankruptcy of Swiss neobroker and neobank FlowBank, has issued a new update regarding the status of client and creditor fund returns, along with the disposal of some of FlowBank’s assets, including its stake in FCA-regulated broker London Capital Group (LCG).

The update begins with good news: Walder Wyss is confident that first and second-class creditors will receive their full claims. These creditors, whose deposits are under CHF 100,000, have claims totaling CHF 2.2 million. These claims are set to be paid in full.

However, the outlook is less optimistic for third-class creditors, those with unsecured deposits exceeding CHF 100,000. Walder Wyss estimates that only 70-80% of the CHF 384.2 million in third-class claims will be repaid, meaning that between CHF 77 million to CHF 115 million of deposits may not be returned.

FlowBank Liquidation Update: Full Repayment for Some Creditors

The liquidation team is also still working on selling FlowBank’s stake in London Capital Group, the FCA-regulated broker. LCG, which recently rebranded and shifted its business model, has shown improved results, with positive cash flow for the second half of 2024. Also, the company is expected to report an annual profit for 2024, reversing losses from previous years.

Regarding the transfer of securities, Walder Wyss reported progress. As of February 7, 2025, 92.46% of deposit positions are sold or transferred. Also, 85% of customers have their shares or proceeds from sales. However, 260 clients have not yet provided instructions, and 682 customers are still waiting for the completion of their transfers. The liquidation team aims to transfer or sell all securities with received instructions by March 31, 2025.

The inventory of FlowBank’s assets has shifted since the last update, partly due to secured deposit payments and ongoing liquidation-related expenses.

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