Securities and fractions of securities (also known as fractional shares) are held with our custodian bank (and mom) Swissquote. As a Yuhser you own a fiduciary right to these securities. In plain words, they are as safe as any other security held in a FINMA regulated Swiss bank.
In the event of bankruptcy Yuh customers retain their rights to their securities, including fractions. According to Art. 37d BankG, these shares are excluded from the bankruptcy estate by law and can therefore be considered as special assets. This means that they will survive outside of the banking institution.
In addition, by law, the liquidator must transfer the corresponding financial instruments to a third-party custodian, i.e., another bank or securities dealer who will continue to hold these shares in trust for the customer. A transfer of securities can only be requested if they are whole. In the case of fractions of securities, they must be transferred or sold to a third-party custodian. The transfer of securities to a new custodian is regulated in Art. 17 of the Federal Act on Book-Entry Securities (BEG).