Enough complicity (cross-border guide)

Context

In a nutshell

• Demonstration in Locarno against companies accused of financing the genocide in Palestine
• Critical focus on UBS, strategic partner of the Locarno Film Festival

Key facts

• Date: August 2024
• Place: Locarno (Piazza Grande)
• Entity: UBS
• Reason: Investments in armaments and financial support to entities involved in the conflict

The protest affected the image of UBS in the context of the Locarno Film Festival. The protesters denounce the work of the bank, which manages global assets exceeding $5 trillion, citing investments in defense companies. The debate fits into the context of the Federal Law on Elements of International Law (LDP), which regulates arms exports.

📊 Comparison of financial scenarios

• Scenario A (Ethical investment): Exclusion of securities related to armaments and compliance with ESG (Environmental, Social, Governance) principles.
• Scenario B (Current Model): Diversification into defense sectors with short-term returns, but risk of reputational sanctions and local boycotts.

Ethical Investor Operational 💡 Checklist

• Check the MSCI World Socially Responsible (SRI) index.
• Analysis of annual sustainability reports.
• Control of mutual funds through ethical rating platforms.

⚠️ Regulatory references

• EU Directive 2019/1937: Whistleblower protection on illicit financial practices.
• Investment limits: Some ethical funds in Ticino impose a ceiling

Operational details

The demonstration was organized to protest against the companies that finance the genocide in Palestine. The main sponsor of the Locarno Film Festival, UBS, was particularly in the spotlight. It is unclear if there will be any other demonstrations or future actions to protest against these companies.

The focus was on UBS's financial exposure to war sectors, in a context where ethical activism intersects asset management in Ticino. In Locarno and Lugano, protesters drew attention to investments in companies such as Elbit Systems, citing capital flows exceeding billions of francs.

📊 Comparison of investment scenarios:

• Standard portfolio: Maximizing performance without stringent ESG filters.
• Ethical portfolio: Total exclusion of armaments and companies sanctioned by the UN.

Conscious Investor Operational ⚠️ Checklist:

• Verification of the annual sustainability report.
• Analysis of the share of assets in controversial sectors.
• Request for divestment through shareholder meetings.

"We cannot accept sponsorships from those who fund death," a committee spokesman said.

The debate is part of the Federal Law on the Management of Pension Funds, which since 2024 imposes stricter transparency criteria. In Ticino, the impact is measured on the management of funds that move billions of francs, where alignment with investment principles

Recommended tools

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Key points

If you are interested in finding out how companies funding the genocide in Palestine can be involved in your area, you can check out our section on protests in Ticino.

The analysis concerns entities with offices in Lugano and Chiasso that manage financial flows to defence contractors.

📊 Data and Scenarios

• Scenario A: Direct investments in ethical funds excluding armaments.
• Scenario B: Diversified portfolios with stakes in companies providing surveillance technologies used in Gaza.

⚠️ Regulatory References The framework is the Federal Law on Financial Institutions (LIFI), updated to 1 January 2023, which regulates asset transparency. In Ticino, penalties for violations of financial ethics can range from 10,000 to 100,000 francs depending on the severity of the administrative sanction.

Operational 💡 Checklist

• Check the company's annual sustainability report.
• Check the UN sanctions list.
• Analyse the links between local branches and international parent companies.

"Transparency is the only tool of pressure."

The protest actions are concentrated at the business centres of Bellinzona and Mendrisio, where financial intermediaries operate with assets under management of more than 500 million francs.

Source: tio.ch