Pension funds and other institutional investors that held Additional Tier 1 (AT1) bonds issued by Credit Suisse are facing a 19 March deadline to preserve potential legal claims linked to the lender’s 2023 rescue by UBS.
More than $17bn (€15.6bn) of AT1 contingent convertible bonds were written down to zero as part of the emergency takeover, wiping out investors and triggering widespread concern among asset owners globally, including pension schemes with exposure to bank capital instruments.
The decision by Switzerland’s financial regulator FINMA to order the write-down has been the subject of ongoing legal challenges. In October 2025, the Federal Administrative Court ruled that the move lacked a sufficient legal basis, setting aside FINMA’s decision.
The case is expected to be heard by the Swiss Supreme Court, although a final ruling could take several years.
Legal advisers warn that investors who wish to maintain potential claims – including possible actions involving UBS – may need to take procedural steps before 19 March to interrupt the statute of limitations under Swiss law.
“Those Credit Suisse AT1 bondholders who intend to preserve potential claims will need to act before 19 March 2026 to interrupt the applicable statute of limitations under Swiss law,” said Benno Hafner, co-founder and senior partner at Hafner Urbach Partner.
The prospect of lengthy legal proceedings, combined with uncertainty over the ultimate outcome, has left many institutional investors weighing the costs and benefits of pursuing claims.
The AT1 write-down has had lasting implications for pension funds’ approach to bank capital, with some investors reassessing allocations to subordinated financial debt and contingent convertible instruments.
Alcimos Collective Action has launched a website for affected investors seeking to preserve their rights ahead of the 19 March deadline.
