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Swiss Gemini fund wins fees battle

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  • Swiss Gemini fund wins fees battle

SWITZERLAND - The CHF2.3bn (€1.6bn) Swiss Gemini multi-employer fund is set to receive CHF6.4m in compensation following a three-year legal battle with an affiliate that withheld fees payable to the scheme.

A planned sale of the affiliate, Gemini Personalvorsorge, in 2007 revealed that it had kept CHF6m in investment and insurance fees (paid between 2001 and 2006) rather than passing it on to the Gemini Pensionskasse. (See earlier IPE-story: Swiss pensions architect quits board after questions)

Both owners of Gemini Personalvorsorge, Carl Helbling, then head of the Gemini trustee board, and Oscar Leutwyler, then head of pensions at Swisscanto, had to leave their respective positions.

The Swiss social ministry, which investigated the case from 2007 and confirmed the irregularities, revealed that an agreement has been reached, which will see the withheld fees transferred to the Gemini Pensionskasse with interest. The multi-employer fund will not have to pay the legal costs.

The pension fund originally planned to acquire Gemini Personalvorsorge but as followed the advice of the social ministry to simply transfer the assets of the affiliate.

The social ministry said ffurther supervisory measures in the case would not be necessary. Gemini said no further details on the agreement were to be revealed.

 

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