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Federal Act on Intermediated Securities
English is not an official language of the Swiss Confederation. This translation is provided for information purposes only and has no legal force.
The Federal Assembly of the Swiss Confederation,
Chapter 1 Purpose, Scope and Definitions
Chapter 2 Creation, Extinction and Conversion of Intermediated Securities
1If an account holder has granted a security interest to a custodian, and the custodian has exercised a right of use by creating a security interest, the custodian shall return to the account holder intermediated securities in the same quantity and of the same kind no later than the due date for the performance of the secured obligation.
2These intermediated securities shall be subject to the same security interest as the original security interest, and shall be treated as if they had been provided at the same time as the original security interest.
3To the extent provided by the security agreement with the account holder, the custodian may realise the intermediated securities in accordance with Article 31 instead of returning them.
3The liquidator of a custodian shall satisfy claims of sub-custodians arising out of the custody of the intermediated securities or the financing of their acquisition.
1 Inserted by No I 4 of the FA of 21 June 2019 on the Implementation of the Recommendations of the Global Forum on Transparency and the Exchange of Information for Tax Purposes, in force since 1 Nov. 2019 (AS 2019 3161; BBl 2019 279).
2 SR 220
3 Corrected by the Federal Assembly Drafting Committee (Art. 58 para. 1 ParlA; SR 171.10).
4Intermediated securities and claims for delivery of intermediated securities excluded from the custodian’s estate shall be:
- transferred to the custodian designated by the account holder; or
- delivered to the account holder in the form of certificated securities.
5Claims of the custodian under Article 21 are reserved.
Chapter 3 Sub-Custody and Availability of Intermediated Securities
Chapter 4 Rights deriving from the Custody of Intermediated Securities
Section 1 General Rights of Account Holders
Section 2 Rights of Account Holders in the event of a Custodian’s Liquidation
Section 3 Rights of a Custodian in Intermediated Securities
1This Act is subject to an optional referendum.
2The Federal Council shall set the commencement date.
3A custodian may waive its liability under paragraph 2 if the account holder has expressly designated the sub-custodian contrary to the custodian’s advice.
4A custodian shall be liable, as if they were its own, for the acts of a sub-custodian which:
- independently and over a long period of time administers and settles all securities transactions on behalf of the custodian; or
- is part of the same economic entity as the custodian.
1 Amended by Annex No 14 of the Financial Market Infrastructure Act of 19 June 2015, in force since 1 Jan. 2016 (AS 2015 5339; BBl 2014 7483).
2 Repealed by Annex No 14 of the Financial Market Infrastructure Act of 19 June 2015, with effect from 1 Jan. 2016 (AS 2015 5339; BBl 2014 7483).
5Agreements to the contrary shall be valid only as between custodians or when made in favour of investors.