Ordinance on Collective Investment Schemes

(Art. 2 para. 2 let. f CISA)

Ir­re­spect­ive of its leg­al status, an in­vest­ment club must meet the fol­low­ing re­quire­ments:

a.

The mem­ber­ship rights are set out in the rel­ev­ant con­stitutive doc­u­ment for its chosen leg­al status.

b.

The mem­bers or a sec­tion of the mem­bers take the in­vest­ment de­cisions.

c.

The mem­bers are in­formed about the status of the in­vest­ments on a reg­u­lar basis.

d.

The num­ber of mem­bers does not ex­ceed twenty.

(Art. 2 para. 2 let. d CISA)

¹For the pur­pose of ap­ply­ing the Act and ir­re­spect­ive of their leg­al status, op­er­at­ing com­pan­ies which are en­gaged in en­tre­pren­eur­i­al activ­it­ies are com­pan­ies:

a.

which have either their re­gistered of­fice as defined by their art­icles of as­so­ci­ation or their ac­tu­al re­gistered of­fice in Switzer­land or which are es­tab­lished in Switzer­land if their re­gistered of­fice as defined by their art­icles of as­so­ci­ation is loc­ated in an­oth­er state;

b.

which pur­sue their activ­it­ies on a com­mer­cial basis or on a scale which re­quires com­mer­cially or­gan­ised busi­ness op­er­a­tions; and

c.

whose main pur­pose is the man­age­ment of a ser­vices, pro­duc­tion or trad­ing busi­ness.

²Op­er­at­ing com­pan­ies are in par­tic­u­lar com­pan­ies which:

a.

de­vel­op or con­struct real es­tate;

b.

pro­duce, buy, sell or ex­change goods and com­mod­it­ies;

c.

of­fer oth­er ser­vices out­side the fin­an­cial sec­tor.

³Op­er­at­ing com­pan­ies are also com­pan­ies which in the course of their op­er­at­ing activ­it­ies avail them­selves of the ser­vices of ex­tern­al ser­vice pro­viders or of com­pan­ies with­in their group, provided en­tre­pren­eur­i­al de­cisions in day-to-day busi­ness op­er­a­tions re­main at all times with the com­pany it­self by vir­tue of the ex­press agree­ment of rights to in­flu­ence leg­al re­la­tion­ships, to ex­ert con­trol and to is­sue dir­ect­ives.

⁴Com­pan­ies in ac­cord­ance with Art­icle 13 para­graph 2 let­ters c and d of the Act which as­sume con­trol of the vot­ing rights in com­pan­ies or sit on the body re­spons­ible for the gov­ernance, su­per­vi­sion and con­trol of their par­ti­cip­a­tions are not deemed to be op­er­at­ing com­pan­ies.

⁵In ad­di­tion to their en­tre­pren­eur­i­al activ­it­ies, op­er­at­ing com­pan­ies may also en­gage in in­vest­ments. These may, however, merely rep­res­ent a sub­or­din­ate or ac­cess­ory activ­ity with re­spect to the main pur­pose.

(Art. 2 para. 3 CISA)

Newly es­tab­lished in­vest­ment com­pan­ies whose is­sue pro­spect­us provides for a list­ing on a Swiss stock ex­change are treated as equi­val­ent to lis­ted com­pan­ies provided list­ing is com­pleted with­in one year.

(Art. 7 para. 3 and 4 CISA)

¹Ir­re­spect­ive of leg­al status, col­lect­ive in­vest­ment schemes are as­sets provided by at least two mu­tu­ally in­de­pend­ent in­vestors for the pur­pose of col­lect­ive in­vest­ment and which are man­aged ex­tern­ally.

²In­vestors are mu­tu­ally in­de­pend­ent when they provide as­sets that are mu­tu­ally in­de­pend­ent in leg­al and de facto terms.

³For group com­pan­ies in the same group of com­pan­ies pur­su­ant to Art­icle 3 of the Fin­an­cial In­sti­tu­tions Or­din­ance of 6 Novem­ber 2019² (FinIO), the re­quire­ment for the as­sets to be in­de­pend­ent pur­su­ant to para­graph 2 does not ap­ply.³

⁴The as­sets of a col­lect­ive in­vest­ment scheme may be provided by a single in­vestor (single in­vestor fund) where such in­vestor is an in­vestor pur­su­ant to Art­icle 4 para­graph 3 let­ter b, e or f of the Fin­an­cial Ser­vices Act of 15 June 2018⁴ (FinSA).⁵

⁵The re­stric­tion of in­vestor eli­gib­il­ity to in­vestors as defined in para­graph 4 must be dis­closed in the rel­ev­ant doc­u­ments pur­su­ant to Art­icle 15 para­graph 1 of the Act.

(Art. 10 para. 3^ter CISA)

The fin­an­cial in­ter­me­di­ary:

a.

shall, with­in the mean­ing of Art­icle 10 para­graph 3^ter of the Act, in­form in­vestors that they are deemed qual­i­fied in­vestors;

b.

shall ex­plain the risks that this en­tails; and

c.

shall in­form them that they have the op­tion of de­clar­ing in writ­ing or in an­oth­er form demon­strable via text that they do not wish to be deemed qual­i­fied in­vestors.

(Art. 13 and 14 CISA)

Any party ap­ply­ing for au­thor­isa­tion un­der Art­icle 13 of the Act must sub­mit the fol­low­ing doc­u­ments to FINMA:

a.¹

the art­icles of as­so­ci­ation and the or­gan­isa­tion­al reg­u­la­tions in the case of a SICAV and a SI­CAF;

b.

the com­pany agree­ment in the case of a lim­ited part­ner­ship for col­lect­ive in­vest­ment;

c.²

the rel­ev­ant or­gan­isa­tion­al doc­u­ments in the case of the rep­res­ent­at­ive of for­eign col­lect­ive in­vest­ment schemes.

(Art. 13 para. 3 CISA)

Any party au­thor­ised as a fund man­age­ment com­pany is ex­emp­ted from the duty to ob­tain au­thor­isa­tion for rep­res­ent­at­ives of for­eign col­lect­ive in­vest­ment schemes.

(Art. 14 para. 1 let. a, a^bis and b CISA)

¹The per­sons re­spons­ible for the ad­min­is­tra­tion and the man­age­ment shall be suit­ably qual­i­fied for the en­vis­aged activ­ity on the basis of their edu­ca­tion and train­ing, ex­per­i­ence and ca­reer his­tory.

²The en­vis­aged activ­ity at the au­thor­ised party as well as the nature of the in­ten­ded in­vest­ments must also be taken in­to ac­count when as­sess­ing the re­quire­ments.

(Art. 14 para. 1 let. c CISA)

¹The ex­ec­ut­ive board must com­prise at least two per­sons. These per­sons must have their place of res­id­ence at a loc­a­tion which is suit­able for the prop­er man­age­ment of the busi­ness op­er­a­tions.

²The au­thor­ised sig­nat­or­ies of the li­censee must sign jointly.

³The li­censee must define its or­gan­isa­tion­al struc­ture in a set of or­gan­isa­tion­al reg­u­la­tions.¹

⁴It must em­ploy per­son­nel who are prop­erly and suit­ably qual­i­fied for its activ­ity.

⁵FINMA may re­quire that an in­tern­al audit be per­formed if re­quired by the scope and nature of the activ­ity.

⁶In jus­ti­fied in­stances, it may grant derog­a­tions from these re­quire­ments.

(Art. 14 para. 1^ter CISA)

¹The li­censee must en­sure it has prop­er and ap­pro­pri­ate risk man­age­ment, an in­tern­al con­trol sys­tem (ICS) and com­pli­ance cov­er­ing its en­tire busi­ness activ­it­ies.

²Risk man­age­ment must be or­gan­ised so that all ma­ter­i­al risks can be ad­equately iden­ti­fied, as­sessed, con­trolled and mon­itored.

³The li­censee shall sep­ar­ate the func­tions of risk man­age­ment, the in­tern­al con­trol sys­tem and com­pli­ance in func­tion­al and hier­arch­ic­al terms from the op­er­at­ing units, in par­tic­u­lar from the in­vest­ment de­cisions func­tion (port­fo­lio man­age­ment).

⁴FINMA may grant derog­a­tions from these re­quire­ments in jus­ti­fied in­stances.

(Art. 14 para. 1^ter CISA)

¹Tasks are deemed to be del­eg­ated if the SICAV and the rep­res­ent­at­ives of for­eign col­lect­ive in­vest­ment schemes ap­point a ser­vice pro­vider to in­de­pend­ently and per­man­ently per­form in full or in part a ma­ter­i­al task, thereby chan­ging the cir­cum­stances un­der­ly­ing the au­thor­isa­tion.

²Ma­ter­i­al tasks are deemed to be:

a.

for a SICAV: tasks in ac­cord­ance with Art­icle 26 CISA;

b.

for a rep­res­ent­at­ive of for­eign col­lect­ive in­vest­ment schemes: tasks in ac­cord­ance with Art­icle 124 CISA.

(Art. 14 para. 1^ter CISA)

¹The SICAVs and the rep­res­ent­at­ives of for­eign col­lect­ive in­vest­ment schemes may del­eg­ate to third parties only those tasks which do not need to be with­in the de­cision-mak­ing re­mit of the body re­spons­ible for man­age­ment or for gov­ernance, su­per­vi­sion and con­trol.

²Del­eg­a­tion must not im­pair the ap­pro­pri­ate­ness of the op­er­a­tion­al or­gan­isa­tion.

³The op­er­a­tion­al or­gan­isa­tion is no longer deemed to be ap­pro­pri­ate if the SICAV or the rep­res­ent­at­ive of for­eign col­lect­ive in­vest­ment schemes:

a.

does not have the ne­ces­sary per­son­nel re­sources and spe­cial­ist know­ledge to se­lect, in­struct and mon­it­or the third party and man­age the as­so­ci­ated risks; or

b.

does not have the ne­ces­sary rights to is­sue in­struc­tions to or con­trol the third party.

(Art. 14 para. 1^ter CISA)

¹The SICAV or the rep­res­ent­at­ive of for­eign col­lect­ive in­vest­ment schemes re­mains re­spons­ible for the ful­fil­ment of su­per­vis­ory du­ties and when del­eg­at­ing tasks shall safe­guard cli­ents' in­terests.

²They shall agree with the third party in writ­ing or in an­oth­er form demon­strable via text which tasks are to be del­eg­ated. The fol­low­ing in par­tic­u­lar are to be laid down in the agree­ment:

a.

the au­thor­it­ies and re­spons­ib­il­it­ies;

b.

any powers of sub­deleg­a­tion;

c.

the third party's duty to render ac­count;

d.

the rights to con­trol of the SICAV and the rep­res­ent­at­ive of for­eign col­lect­ive in­vest­ment schemes.

³The SICAVs and the rep­res­ent­at­ives of for­eign col­lect­ive in­vest­ment schemes shall lay down in their or­gan­isa­tion­al prin­ciples the tasks del­eg­ated as well as de­tails of the pos­sib­il­ity of sub­deleg­a­tion.

⁴Del­eg­a­tion is to be or­gan­ised so that the SICAV or the rep­res­ent­at­ive of for­eign col­lect­ive in­vest­ment schemes, its in­tern­al aud­it­ors, the audit firm and FINMA can in­spect and re­view the del­eg­ated task.

(Art. 14 para. 1 let. d CISA)

The li­censee has suf­fi­cient fin­an­cial guar­an­tees if it meets the rel­ev­ant pro­vi­sions re­gard­ing the min­im­um cap­it­al or min­im­um in­vest­ment amount.

(Art. 15 para. 1 let. e CISA)

For for­eign col­lect­ive in­vest­ment schemes, the fol­low­ing doc­u­ments must be sub- mit­ted to FINMA for ap­prov­al:

a.

the pro­spect­us;

b.²

the key in­form­a­tion doc­u­ment in ac­cord­ance with Art­icles 58–63 and 66 FinSA³;

c.

the col­lect­ive in­vest­ment agree­ment for the con­trac­tu­al col­lect­ive in­vest­ment schemes;

d.

the art­icles of as­so­ci­ation and the in­vest­ment reg­u­la­tions or the com­pany agree­ment of col­lect­ive in­vest­ment schemes or­gan­ised un­der com­pany law;

e.

oth­er doc­u­ments that would be ne­ces­sary for ap­prov­al un­der ap­plic­able for­eign laws and those for Swiss col­lect­ive in­vest­ment schemes in ac­cord­ance with Art­icle 15 para­graph 1 of the Act.

(Art. 16 CISA)

¹In the event of changes to the or­gan­isa­tion­al struc­ture, au­thor­isa­tion must be ob­tained from FINMA. The doc­u­ments defined in Art­icle 7 must be sub­mit­ted to FINMA.

²Changes to doc­u­ments in ac­cord­ance with Art­icle 15 of the Act must be sub­mit­ted to FINMA, with the ex­cep­tion of:

a.

the rel­ev­ant doc­u­ments of for­eign col­lect­ive in­vest­ment schemes;

b.

any change in the total lim­ited part­ners' con­tri­bu­tions in the com­pany agree­ment of the lim­ited part­ner­ship for col­lect­ive in­vest­ment;

c.¹

changes to doc­u­ments re­quir­ing ap­prov­al in the case of a do­mest­ic col­lect­ive in­vest­ment scheme where such doc­u­ments re­late ex­clus­ively to pro­vi­sions on sales and dis­tri­bu­tion re­stric­tions and are re­quired in the con­text of for­eign laws, in­ter­na­tion­al treat­ies, bi­lat­er­al or su­per­vis­ory ar­range­ments, etc.

(Art. 16 CISA)

¹The li­censees, with the ex­cep­tion of the cus­todi­an bank, shall re­port:

a.

any change in the per­sons re­spons­ible for the ad­min­is­tra­tion and the man­age­ment;

b.

facts which might call in­to ques­tion the good repu­ta­tion or the guar­an­tee of ir­re­proach­able busi­ness con­duct by the per­sons re­spons­ible for the ad­min­is­tra­tion and the man­age­ment, spe­cific­ally the in­stig­a­tion of crim­in­al pro­ceed­ings against them;

c.

any change in sig­ni­fic­ant equity hold­ers, ex­cept for com­pany share­hold­ers in a SICAV and lim­ited part­ners in a lim­ited part­ner­ship for col­lect­ive in­vest­ment;

d.

facts which might call in­to ques­tion the good repu­ta­tion of sig­ni­fic­ant equity hold­ers, spe­cific­ally the in­stig­a­tion of crim­in­al pro­ceed­ings against them;

e.

facts which call in­to ques­tion the prudent and sound busi­ness prac­tice of the li­censees ow­ing to the in­flu­ence of the sig­ni­fic­ant equity hold­ers;

f.

any change with re­spect to the fin­an­cial guar­an­tees (Art. 13), in par­tic­u­lar if the min­im­um re­quire­ments are no longer met.

²The cus­todi­an bank shall re­port any change of ex­ec­ut­ive per­sons en­trus­ted with the per­form­ance of the cus­todi­an bank's du­ties (Art. 72 para. 2 CISA).

³Fur­ther­more, changes to the pro­spect­us as well as to the key in­form­a­tion doc­u­ment must also be re­por­ted in ac­cord­ance with Art­icles 58–63 and 66 FinSA¹.²

⁴The rep­res­ent­at­ives of for­eign col­lect­ive in­vest­ment schemes that are not offered ex­clus­ively to qual­i­fied in­vestors must re­port:³

a.⁴

meas­ures taken by a for­eign su­per­vis­ory au­thor­ity against the col­lect­ive in­vest­ment scheme, spe­cific­ally its with­draw­al of ap­prov­al;

b.⁵

changes to the doc­u­ments for for­eign col­lect­ive in­vest­ment schemes in ac­cord­ance with Art­icle 13a;

c.⁶

...

⁵The re­port must be made im­me­di­ately to FINMA, which shall es­tab­lish wheth­er the re­por­ted facts com­ply with the Act.

(Art. 17 CISA)

¹The sim­pli­fied ap­prov­al pro­ced­ure may only be ad­op­ted where the fund reg­u­la­tions:

a.

com­ply with a format which FINMA has re­cog­nised as be­ing the min­im­um stand­ard, such as mod­el reg­u­la­tions and pro­spect­uses of a spe­cif­ic in­dustry body; or

b.

com­ply with a set of stand­ards which FINMA has re­cog­nised as bind­ing in re­la­tion to the rel­ev­ant li­censee.

²FINMA shall give the ap­plic­ant con­firm­a­tion of its re­ceipt of the ap­plic­a­tion.

³Where ad­di­tion­al in­form­a­tion is re­quired for the pur­pose of as­sess­ing the ap­plic­a­tion, FINMA may in­struct the ap­plic­ant to sub­mit such in­form­a­tion at a sub­sequent time.

(Art. 17 CISA)

¹Open-ended col­lect­ive in­vest­ment schemes for qual­i­fied in­vestors are deemed to have been ap­proved on ex­piry of the fol­low­ing time lim­its:

a.

se­cur­it­ies funds, real es­tate funds and oth­er funds for tra­di­tion­al in­vest­ments: fol­low­ing re­ceipt of the ap­plic­a­tion;

b.

oth­er funds for al­tern­at­ive in­vest­ments: four weeks fol­low­ing re­ceipt of the ap­plic­a­tion.

²FINMA shall ap­prove open-ended col­lect­ive in­vest­ment schemes which are dir­ec­ted to­wards the pub­lic at the latest with­in the fol­low­ing time lim­its:

a.

se­cur­it­ies funds: four weeks fol­low­ing re­ceipt of the ap­plic­a­tion;

b.

real es­tate funds and oth­er funds for tra­di­tion­al in­vest­ments: six weeks fol­low­ing re­ceipt of the ap­plic­a­tion;

c.

oth­er funds for al­tern­at­ive in­vest­ments: eight weeks fol­low­ing re­ceipt of the ap­plic­a­tion.

³The peri­od be­gins one day fol­low­ing re­ceipt of the ap­plic­a­tion.

⁴Where FINMA re­quires fur­ther in­form­a­tion, the com­mence­ment of the peri­od must be post­poned from the time the re­quest is made un­til such time as the in­form­a­tion is re­ceived by FINMA.

(Art. 17 CISA)

¹FINMA may de­mand that a sub­sequent amend­ment be made to the doc­u­ments for col­lect­ive in­vest­ment schemes for qual­i­fied in­vestors for a peri­od of up to three months fol­low­ing sim­pli­fied ap­prov­al.

²The in­vestors must:

a.

be made aware of the pos­sib­il­ity of an amend­ment in ad­vance;

b.

be in­formed of sub­sequent amend­ments in the me­dia of pub­lic­a­tion.

(Art. 14 para. 1 let. d CISA)¹

¹In the case of a com­pany lim­ited by shares and a part­ner­ship lim­ited by shares, the cap­it­al is the share and par­ti­cip­a­tion cap­it­al, and in the case of a lim­ited li­ab­il­ity com­pany it is the is­sued cap­it­al.

²In the case of part­ner­ships, the cap­it­al is:²

a.

the cap­it­al ac­counts;

b.

the part­ner­ship con­tri­bu­tions; and

c.

the as­sets of the part­ners with un­lim­ited li­ab­il­ity.

³The cap­it­al ac­counts and as­sets of the part­ners with un­lim­ited li­ab­il­ity may only be coun­ted to­wards the cap­it­al if a de­clar­a­tion is provided to the ef­fect that:³

a.

in the event of li­quid­a­tion, bank­ruptcy or ad­min­is­tra­tion pro­ceed­ings such as­sets shall be sub­or­din­ate to the claims of all oth­er cred­it­ors; and

b.

an ob­lig­a­tion ex­ists:⁴

1.

not to net such as­sets with its own claims nor se­cure them from its own as­sets,

2.

not to re­duce any of the com­pon­ents of the cap­it­al as defined in para­graph 2 let­ters a and c to the ex­tent that the min­im­um cap­it­al is no longer main­tained without the pri­or con­sent of the audit com­pany.

⁴The de­clar­a­tion in ac­cord­ance with para­graph 3 is ir­re­voc­able. It must be made in writ­ing or in an­oth­er form demon­strable via text and filed with a li­censed audit firm.⁵

(Art. 14 para. 1 let. d CISA)

¹Leg­al en­tit­ies may in­clude the fol­low­ing in qual­i­fy­ing cap­it­al:

a.

the paid-up share and par­ti­cip­a­tion cap­it­al in the case of a com­pany lim­ited by shares and part­ner­ship lim­ited by shares, and the is­sued cap­it­al in the case of a lim­ited li­ab­il­ity com­pany;

b.

the gen­er­al stat­utory re­serve and oth­er re­serves;

c.

re­tained earn­ings;

d.

the net profit for the cur­rent fin­an­cial year after de­duct­ing the es­tim­ated earn­ings dis­tri­bu­tion, provided an audited in­ter­im fin­an­cial state­ment in­clud­ing full in­come state­ment is avail­able;

e.

hid­den re­serves, provided they are as­signed to a sep­ar­ate ac­count and des­ig­nated as own funds. Their al­low­ab­il­ity must be con­firmed in the audit re­port¹.

²Part­ner­ships may in­clude the fol­low­ing in qual­i­fy­ing cap­it­al:²

a.

the cap­it­al ac­counts;

b.

the part­ner­ship con­tri­bu­tions;

c.³

...

d.

the funds of the part­ners with un­lim­ited li­ab­il­ity, provided the con­di­tions stated in Art­icle 20 para­graph 3 are met.

³...⁴

⁴The qual­i­fy­ing cap­it­al as defined in para­graphs 1 and 2 let­ters a–d must ac­count for at least 50 per­cent of the total re­quired.

(Art. 14 para. 1 let. d CISA)

The fol­low­ing shall be de­duc­ted when cal­cu­lat­ing cap­it­al ad­equacy:

a.

the loss car­ried for­ward and the loss for the cur­rent fin­an­cial year;

b.

any un­se­cured al­low­ance and pro­vi­sion for the cur­rent fin­an­cial year;

c.¹

...

d.

in­tan­gible as­sets (in­clud­ing start-up and or­gan­isa­tion­al costs as well as good­will) with the ex­cep­tion of soft­ware;

e.

in the case of a com­pany lim­ited by shares and part­ner­ship lim­ited by shares, the shares which they hold in the com­pany at their own risk;

f.

in the case of a lim­ited li­ab­il­ity com­pany, the cap­it­al con­tri­bu­tion which it holds in the com­pany at its own risk; g. the car­ry­ing amount of in­vest­ments, un­less a con­sol­id­a­tion is per­formed in ac­cord­ance with Art­icle 29;

g.²

the car­ry­ing amount of par­ti­cip­a­tions.

(Art. 20 para. 1 let. a CISA)

¹Per­sons who man­age or rep­res­ent col­lect­ive in­vest­ment schemes or hold the as­sets of these schemes in safe­keep­ing, or their agents, may only pur­chase in­vest­ments from col­lect­ive in­vest­ment schemes for their own ac­count at the mar­ket price and may only sell such in­vest­ments from their own port­fo­li­os at the mar­ket price.¹

²In re­la­tion to ser­vices del­eg­ated to third parties they shall waive the com­pens­a­tion owed to them in ac­cord­ance with the fund reg­u­la­tions, com­pany agree­ment, in­vest­ment reg­u­la­tions or dis­cre­tion­ary man­age­ment agree­ment where such com­pens­a­tion is not used for pay­ment of the ser­vices rendered by such third parties.

³Where in­vest­ments of a col­lect­ive in­vest­ment scheme are trans­ferred to an­oth­er scheme of the same li­censee or a scheme be­long­ing to a re­lated li­censee, no costs may be levied.

⁴Per­sons who man­age or rep­res­ent col­lect­ive in­vest­ment schemes or hold the as­sets of these schemes in safe­keep­ing, or their agents, may not levy any is­sue or re­demp­tion fees if they pur­chase tar­get funds which:²

a.

they man­age them­selves either dir­ectly or in­dir­ectly; or

b.

are man­aged by a com­pany to which they are re­lated by vir­tue of:

1.

com­mon man­age­ment,

2.

con­trol, or

3.

a sig­ni­fic­ant dir­ect or in­dir­ect in­terest.³

⁵When a man­age­ment fee is levied on in­vest­ments in tar­get funds pur­su­ant to para­graph 4, Art­icle 73 para­graph 4 ap­plies ac­cord­ingly.⁴

⁶FINMA reg­u­lates the de­tails. It may de­clare that para­graph 4 and 5 also ap­plies to oth­er products.⁵

(Art. 20 para. 1 let. a, 21 para. 3 and 63 CISA)

¹Per­sons who man­age or rep­res­ent col­lect­ive in­vest­ment schemes or hold the as­sets of these schemes in safe­keep­ing, or their agents, shall cal­cu­late the fees pay­able to closely re­lated nat­ur­al or leg­al per­sons that par­ti­cip­ate in the plan­ning, con­struc­tion, pur­chas­ing or sale of a build­ing for the ac­count of the col­lect­ive in­vest­ment scheme; the fees shall be based ex­clus­ively on the nor­mal prices pre­vail­ing in the sec­tor.¹

²The valu­ation ex­pert shall check the fee in­voice pri­or to set­tle­ment there­of and if ne­ces­sary fur­nish the li­censee and the audit com­pany with a re­port.

³Where real es­tate in­vest­ments of a col­lect­ive in­vest­ment scheme are trans­ferred to an­oth­er scheme of the same li­censee or a re­lated li­censee, no com­pens­a­tion may be levied for buy­ing and selling work un­der­taken.

⁴Pay­ments by real es­tate com­pan­ies to the mem­bers of their ad­min­is­tra­tion, to their man­age­ment and to their per­son­nel shall be in­cluded in the com­pens­a­tion to which the fund man­age­ment com­pany and the SICAV are en­titled in ac­cord­ance with the fund reg­u­la­tions.

(Art. 63 para. 3 and 4 CISA)

¹Pur­su­ant to Art­icle 63 para­graph 4 of the Act, FINMA may in jus­ti­fied in­di­vidu­al cases grant an ex­emp­tion from the ban on trans­ac­tions with closely re­lated per­sons pur­su­ant to Art­icle 63 para­graphs 2 and 3 of the Act if:

a.

the rel­ev­ant doc­u­ments of the col­lect­ive in­vest­ment scheme provide for such a pos­sib­il­ity;

b.

the ex­emp­tion is in the in­terests of the in­vestors;

c.

in ad­di­tion to the valu­ation by the reg­u­lar valu­ation ex­perts for the real es­tate fund, a valu­ation ex­pert who is in­de­pend­ent of such ex­perts or their em­ploy­er and of the fund man­age­ment com­pany or SICAV as well as the cus­todi­an bank of the real es­tate fund pur­su­ant to Art­icle 64 para­graph 1 of the Act con­firms the mar­ket con­form­ity of the pur­chase and sale price for the prop­erty and of the trans­ac­tion costs.

²Fol­low­ing con­clu­sion of the trans­ac­tion, the fund man­age­ment com­pany or SICAV pre­pares a re­port con­tain­ing the fol­low­ing:

a.

in­form­a­tion on the in­di­vidu­al prop­er­ties ac­quired or trans­ferred and their value on the date of ac­quis­i­tion or trans­fer;

b.

the valu­ation re­ports by the reg­u­lar valu­ation ex­perts;

c.

the re­port on the mar­ket con­form­ity of the pur­chase or sales price by the valu­ation ex­perts pur­su­ant to para­graph 1 lit. c.

³As part of its audit of the fund man­age­ment com­pany or SICAV, the audit com­pany con­firms ad­her­ence to the spe­cial duty of loy­alty in re­la­tion to real es­tate in­vest­ments.

⁴The ap­proved trans­ac­tions with closely re­lated per­sons are men­tioned in the an­nu­al re­port of the col­lect­ive in­vest­ment scheme.

⁵In the case of prop­er­ties where the fund man­age­ment com­pany, SICAV or per­sons closely re­lated thereto have con­struc­tion pro­jects car­ried out, FINMA may not grant any ex­emp­tions from the pro­hib­i­tion of trans­ac­tions with closely re­lated per­sons.²

(Art. 20 para. 1 let. a CISA)

Per­sons who man­age or rep­res­ent col­lect­ive in­vest­ment schemes or hold the as­sets of these schemes in safe­keep­ing, or their agents, must take ef­fect­ive or­gan­isa­tion­al and ad­min­is­trat­ive meas­ures to identi­fy, pre­vent, settle and mon­it­or con­flicts of in­terest in or­der to pre­vent the lat­ter from harm­ing the in­terests of the in­vestors. Where con­flicts of in­terest can­not be avoided, they shall be dis­closed to the in­vestors.

(Art. 20 para. 1 let. b CISA)

¹Per­sons who man­age or rep­res­ent col­lect­ive in­vest­ment schemes or hold the as­sets of these schemes in safe­keep­ing, or their agents, shall en­sure the ef­fect­ive sep­ar­a­tion of the activ­it­ies of de­cision-mak­ing (as­set man­age­ment), im­ple­ment­a­tion (trad­ing and set­tle­ment) and ad­min­is­tra­tion.¹

²FINMA may in jus­ti­fied in­di­vidu­al in­stances per­mit ex­emp­tions or or­der the sep­ar­a­tion of ad­di­tion­al func­tions.

(Art. 20 para. 1 let. c and 23 CISA)

¹Per­sons who man­age or rep­res­ent col­lect­ive in­vest­ment schemes or hold the as­sets of these schemes in safe­keep­ing, or their agents, shall draw in­vestors' at­ten­tion to the risks as­so­ci­ated with a spe­cif­ic type of in­vest­ing in par­tic­u­lar.

²They shall dis­close all costs in­curred on the is­sue and re­demp­tion of units and in the ad­min­is­tra­tion of the col­lect­ive in­vest­ment scheme. In ad­di­tion, they shall dis­close the man­ner in which the man­age­ment fee is used and the levy­ing of any per­form­ance fee.

³The duty of dis­clos­ure with re­gard to com­pens­a­tion for dis­tri­bu­tion of col­lect­ive in­vest­ment schemes en­com­passes the nature and scale of all fees and oth­er pe­cu­ni­ary be­ne­fits through which the activ­it­ies of the dis­trib­ut­or are to be com­pensated.

⁴Per­sons who man­age or rep­res­ent col­lect­ive in­vest­ment schemes or hold the as­sets of these schemes in safe­keep­ing, or their agents, shall en­sure a de­gree of trans­par­ency in the ex­er­cising of mem­ber­ship and cred­it­ors' rights such that in­vestors are in a po­s­i­tion to com­pre­hend the man­ner in which such rights are ex­er­cised.

¹in­vest­ment fund or the sub­fund of an um­brella fund must be is­sued for sub­scrip­tion (launch) with­in one year of ap­prov­al by FINMA.

²The in­vest­ment fund or sub­fund of an um­brella fund must have net as­sets of at least 5 mil­lion Swiss francs at the latest one year fol­low­ing its launch.

³FINMA may ex­tend the time lim­its for a cor­res­pond­ing ap­plic­a­tion.

⁴Fol­low­ing ex­piry of the time peri­od as defined in para­graphs 2 and 3, the fund man­age­ment com­pany shall no­ti­fy FINMA of any short­fall forth­with.

(Art. 26 para. 3 CISA)

¹In par­tic­u­lar, the fund con­tract con­tains the fol­low­ing in­form­a­tion:

a.

the name of the in­vest­ment fund, to­geth­er with the name and re­gistered of­fice of the fund man­age­ment com­pany, the cus­todi­an bank and the man­ager of col­lect­ive as­sets;

b.

in­vestor eli­gib­il­ity;

c.

the in­vest­ment policy, in­vest­ment tech­niques, risk di­ver­si­fic­a­tion and the risks as­so­ci­ated with the in­vest­ment;

d.

the sub­di­vi­sion in­to sub­funds;

e.

the unit classes;

f.

in­vestors’ right to can­cel;

g.

the ac­count­ing year;

h.

the cal­cu­la­tion of the net as­set value and of the is­sue and re­demp­tion prices;

i.

the ap­pro­pri­ation of net in­come and cap­it­al gains from the sale of as­sets and rights;

j.

the type, amount and cal­cu­la­tion of all fees, the is­sue and re­demp­tion com­mis­sion to­geth­er with the in­cid­ent­al costs for the pur­chase and sale of the in­vest­ments (broker­age fees, charges, du­ties) that may be charged to the fund’s as­sets or to the in­vestors;

k.

the dur­a­tion of the con­tract and the con­di­tions of dis­sol­u­tion;

l.

the me­dia of pub­lic­a­tion;

m.

the con­di­tions for the de­fer­ment of re­demp­tion and com­puls­ory re­demp­tion;

n.²

the place at which the fund con­tract, pro­spect­us and the key in­form­a­tion doc­u­ment in ac­cord­ance with Art­icles 58–63 and 66 FinSA³, to­geth­er with the an­nu­al and semi-an­nu­al re­ports, may be ob­tained free of charge;

o.

the unit of ac­count;

p.

the re­struc­tur­ing.

²When ap­prov­ing the fund con­tract, FINMA shall only veri­fy the pro­vi­sions pur­su­ant to para­graph 1 lit. a–g and en­sure their com­pli­ance with the Act.

³When ap­prov­ing a con­trac­tu­al fund, FINMA, at the fund man­age­ment com­pany’s re­quest, shall veri­fy all pro­vi­sions of the fund con­tract and en­sure their com­pli­ance with the Act where the fund is to be offered abroad and such ac­tion is re­quired un­der for­eign law.⁴

⁴FINMA may form­al­ise the con­tent of the fund con­tract in ac­cord­ance with in­ter­na­tion­al de­vel­op­ments.

(Art. 26 para. 3 let. b CISA)

¹The fund con­tract sets out the per­mit­ted in­vest­ments:

a.

by type (equity se­cur­it­ies, debt se­cur­it­ies, de­riv­at­ive in­stru­ments, res­id­en­tial prop­erty, com­mer­cial prop­er­ties; pre­cious metals; com­mod­it­ies, etc.);

b.

by coun­try, geo­graph­ic­al re­gion, sec­tor or cur­rency.

²For oth­er funds as defined in Art­icle 68 et seq. of the Act, it also sets out in­form­a­tion on the spe­cial fea­tures and risks of the in­di­vidu­al in­vest­ments in terms of their char­ac­ter­ist­ics and valu­ation.

³The fund con­tract sets out the per­mit­ted in­vest­ment tech­niques and in­stru­ments.

(Art. 26 para. 3 CISA)

¹The fol­low­ing may be charged to the as­sets of the fund or any sub­funds:

a.

a man­age­ment fee for re­mu­ner­at­ing the activ­it­ies of the fund man­age­ment com­pany;

b.

cus­tody fees and oth­er costs for the re­mu­ner­a­tion of the cus­todi­an bank’s activ­ity, in­clud­ing the costs for the safe­keep­ing of the fund’s as­sets by third-party cus­todi­ans or col­lect­ive se­cur­it­ies de­pos­it­or­ies;

c.

a man­age­ment fee and any per­form­ance fees for the re­mu­ner­a­tion of the man­ager of col­lect­ive as­sets;

d.²

any dis­tri­bu­tion fees in re­mu­ner­a­tion of dis­tri­bu­tion activ­it­ies;

e.³

all the in­cid­ent­al costs lis­ted in para­graphs 2 and 2^bis;

f.⁴

com­mis­sion in ac­cord­ance with para­graph 2^ter.

²Where ex­pli­citly provided by the fund con­tract, the fol­low­ing in­cid­ent­al costs may be charged to the as­sets of the fund or the sub­funds:

a.

costs for the pur­chase and sale of the in­vest­ments, spe­cific­ally stand­ard broker­age fees, com­mis­sion, taxes and du­ties, as well as costs for the veri­fic­a­tion and main­ten­ance of qual­ity stand­ards in the case of phys­ic­al in­vest­ments;

b.⁵

...

c.

the su­per­vis­ory au­thor­ity’s fees in re­la­tion to the es­tab­lish­ment, amend­ment, li­quid­a­tion or mer­ger of the fund or any sub­funds;

d.

the su­per­vis­ory au­thor­ity's an­nu­al fees;

e.

the audit com­pany’s fees for an­nu­al audit­ing as well as cer­ti­fic­a­tion in the case of es­tab­lish­ments, amend­ments, li­quid­a­tion or mer­ger of the fund or any sub­funds;

f.

fees for leg­al and tax ad­visors in con­nec­tion with the es­tab­lish­ment, modi­fic­a­tion, li­quid­a­tion or mer­ger of funds or any sub­funds, as well as gen­er­ally up­hold­ing the in­terests of the fund and its in­vestors;

g.

not­ary and com­mer­cial re­gister ex­penses for re­gis­tra­tion in the Com­mer­cial Re­gister of li­censees un­der the col­lect­ive in­vest­ment schemes le­gis­la­tion;

h.

the cost of pub­lish­ing the net as­set value of the fund or its sub­funds, to­geth­er with all the costs of provid­ing no­tices to in­vestors, in­clud­ing trans­la­tion costs, provided such costs can­not be ascribed to any fail­ure on the part of the fund man­age­ment com­pany;

i.

the cost of print­ing leg­al doc­u­ments as well as the fund’s an­nu­al and semi-an­nu­al re­ports;

j.

the cost of any re­gis­tra­tion of the fund with a for­eign su­per­vis­ory au­thor­ity, and spe­cific­ally the com­mis­sion levied by the for­eign su­per­vis­ory au­thor­ity, trans­la­tion costs and re­mu­ner­a­tion for the rep­res­ent­at­ive or pay­ing agent abroad;

k.

costs re­lat­ing to the ex­er­cising of vot­ing rights or cred­it­ors’ rights by the fund, in­clud­ing the cost of fees paid to ex­tern­al ad­visors;

l.

costs and fees re­lat­ing to in­tel­lec­tu­al prop­erty re­gistered in the name of the fund or with rights of use for the fund;

m.

fees paid to the mem­bers of the board of dir­ect­ors of the SICAV and the cost of li­ab­il­ity in­sur­ance;

n.

all costs in­curred though any ex­traordin­ary steps taken to safe­guard the in­terests of in­vestors by the fund man­age­ment com­pany, man­ager of col­lect­ive as­sets or cus­todi­an bank.

^2bisIn the case of real es­tate funds, where ex­pli­citly provided by the fund con­tract, the fol­low­ing in­cid­ent­al costs may ad­di­tion­ally be charged to the as­sets of the fund or the sub­funds:

a.

costs for the pur­chase and sale of real es­tate in­vest­ments, spe­cific­ally stand­ard broker­age fees, con­sult­ants' and law­yers' fees, not­ary and oth­er charges, as well as taxes;

b.

stand­ard broker­age fees paid in con­nec­tion with first let­tings of real es­tate;

c.

stand­ard costs for the man­age­ment of prop­er­ties by third parties;

d.

prop­erty ex­penses, in par­tic­u­lar main­ten­ance and op­er­at­ing costs, in­clud­ing in­sur­ance costs, pub­lic charges and the costs of gen­er­al and in­fra­struc­ture ser­vices, provided these are stand­ard ex­penses and not borne by third parties;

e.

fees of in­de­pend­ent valu­ation ex­perts and oth­er ex­perts for cla­ri­fic­a­tions serving the in­terests of in­vestors;

f.

con­sulta­tion fees and pro­ced­ur­al costs in con­nec­tion with the gen­er­al safe­guard­ing of the in­terests of the real es­tate fund and its in­vestors.⁶

^2terWhere ex­pli­citly provided by the fund con­tract and where the activ­ity is not per­formed by third parties, the man­age­ment com­pany of a real es­tate fund may levy a fee for its own ef­forts in con­nec­tion with the fol­low­ing activ­it­ies:

a.

pur­chase and sale of real es­tate on the basis of the pur­chase or selling price;

b.

con­struc­tion of build­ings, with con­struc­tion costs serving as the basis in the case of renov­a­tions and al­ter­a­tions;

c.

man­age­ment of prop­er­ties on the basis of an­nu­al gross rent­al in­come.⁷

³The fund con­tract sets out the fees and in­cid­ent­al costs in a single, com­pre­hens­ive over­view, provid­ing a break­down by type, max­im­um amount and cal­cu­la­tion.

⁴Use of the term «all-in fee» is only per­miss­ible if it in­cludes all fees with the ex­cep­tion of is­sue and re­demp­tion fees but in­clud­ing in­cid­ent­al costs. If the term «flat fee» is used, spe­cif­ic in­form­a­tion must be provided in­dic­at­ing which fees and in­cid­ent­al costs it does not in­clude.

⁵The fund man­age­ment com­pany, man­ager of col­lect­ive as­sets and cus­todi­an bank may pay com­mis­sions only as re­im­burse­ment for the fund’s dis­tri­bu­tion activ­it­ies and only if this spe­cific­ally provided for in the fund con­tract.

(Art. 26 para. 3 CISA)

¹The in­vestors may be charged for the fol­low­ing:

a.

all-in in­cid­ent­al costs in­curred by the is­sue, re­demp­tion or con­ver­sion of units for the pur­chase and sale of in­vest­ments;

b.

a fee for sub­scrip­tions, con­ver­sions or re­demp­tions to the dis­trib­ut­or to cov­er the costs as­so­ci­ated with dis­tri­bu­tion.

²The fund con­tract de­scribes in a com­pre­hens­ible, trans­par­ent man­ner the fees that may be charged to the in­vestors, as well as their scale and the meth­od of cal­cu­la­tion.

(Art. 26 para. 3 CISA)¹

¹The pro­spect­us for the in­vest­ment fund must spe­cify one or more me­dia of pub­lic­a­tion in which the in­form­a­tion re­quired by the Act and the Or­din­ance shall be made avail­able to in­vestors. The me­dia of pub­lic­a­tion may be print me­dia or elec­tron­ic plat­forms that are pub­licly ac­cess­ible and re­cog­nized by FINMA.²

²All facts which are sub­ject to the dis­clos­ure re­quire­ment, and in re­la­tion to which in­vestors are en­titled to lodge ob­jec­tions with FINMA, in ad­di­tion to the dis­sol­u­tion of an in­vest­ment fund, must be pub­lished in the me­dia of pub­lic­a­tion in­ten­ded for such pur­pose.

(Art. 26 para. 3 let. k and 78 para. 3 CISA)

¹The fund man­age­ment com­pany may cre­ate, li­quid­ate or merge unit classes sub­ject to the con­sent of the cus­todi­an bank and the ap­prov­al of FINMA. In do­ing so it shall ad­dress the fol­low­ing spe­cif­ic cri­ter­ia: cost struc­ture, ref­er­ence cur­rency, cur­rency hedging, dis­tri­bu­tion or re­in­vest­ment of in­come, min­im­um in­vest­ment or in­vestor eli­gib­il­ity.

²The pro­ced­ur­al de­tails are set out in the pro­spect­us. The risk that a class may be li­able for an­oth­er class must be spe­cific­ally dis­closed in the pro­spect­us.

³The fund man­age­ment com­pany an­nounces the cre­ation, dis­sol­u­tion or mer­ging of unit classes in the me­dia of pub­lic­a­tion. Only a mer­ger is deemed to be an amend­ment to the fund con­tract, and is gov­erned by Art­icle 27 of the Act.

⁴Art­icle 112 para­graph 3a-c ap­plies ac­cord­ingly.

⁵The units or unit classes of a do­mest­ic ex­change-traded fund (ETF) must be per­man­ently lis­ted on an au­thor­ised Swiss stock ex­change. Where a for­eign col­lect­ive in­vest­ment scheme ap­proved for of­fer to non-qual­i­fied in­vestors in Switzer­land is an ETF, as a min­im­um those units or unit classes offered in Switzer­land to non-qual­i­fied in­vestors must be per­man­ently lis­ted on an au­thor­ised Swiss stock ex­change.¹

(Art. 27 para. 2 and 3 CISA)

¹The fund man­age­ment com­pany shall pub­lish any amend­ment to the fund con­tract in the me­dia of pub­lic­a­tion of the rel­ev­ant fund in the form spe­cified by the Act. In this pub­lic­a­tion, the fund man­age­ment com­pany shall in­form in­vestors in a clear, com­pre­hens­ible man­ner about which amend­ments to the fund con­tract are covered by FINMA’s veri­fic­a­tion and as­cer­tain­ment of com­pli­ance with the Act.¹

^1bisAmend­ments that are re­quired by law, provided such amend­ments do not af­fect the rights of in­vestors or are of an ex­clus­ively form­al nature, may be ex­emp­ted by FINMA from the duty to pub­lish.²

²The peri­od in which ob­jec­tions to the amend­ment of the fund con­tract may be lodged com­mences on the day fol­low­ing an­nounce­ment in the me­dia of pub­lic­a­tion.

^2bisWhen ap­prov­ing the amend­ment to the fund con­tract, FINMA shall only veri­fy the amend­ments to the pro­vi­sions pur­su­ant to Art­icle 35a para­graph 1 lit. a–g and en­sure their com­pli­ance with the Act.³

^2terWhere in re­la­tion to the ap­prov­al of a fund con­tract pur­su­ant to Art­icle 35a para­graph 3 FINMA has veri­fied all pro­vi­sions and en­sured their com­pli­ance with the Act, it shall also in re­la­tion to the amend­ment to such fund con­tract veri­fy all pro­vi­sions and en­sure their com­pli­ance with the Act if the in­vest­ment fund is to be offered abroad and such ac­tion is re­quired un­der for­eign law.⁴

³In its de­cision FINMA spe­cifies the date on which the amend­ment to the fund con­tract enters in­to force.

(Art. 36 para. 3 CISA)

¹The self-man­aged SICAV per­forms its own ad­min­is­tra­tion. It may only del­eg­ate port­fo­lio man­age­ment in ac­cord­ance with Art­icle 36 para­graph 3 of the Act to a man­ager of col­lect­ive as­sets that is sub­ject to a re­cog­nised su­per­vis­ory body.

²The ex­tern­ally man­aged SICAV del­eg­ates ad­min­is­tra­tion to an au­thor­ised fund man­age­ment com­pany. Ad­min­is­tra­tion also in­cludes dis­tri­bu­tion of the SICAV. In ad­di­tion, the ex­tern­ally man­aged SICAV del­eg­ates port­fo­lio man­age­ment to the same fund man­age­ment com­pany or to a man­ager of col­lect­ive as­sets that is sub­ject to a re­cog­nised su­per­vis­ory body.

³The pro­vi­sions of Art­icle 64 are re­served.

(Art. 36 para. 1 let. d CISA)

A SICAV may only man­age its own as­sets or those of its sub­funds. It is spe­cific­ally pro­hib­ited from ren­der­ing ser­vices pur­su­ant to Art­icle 26 and 34 of the Fin­an­cial In­sti­tu­tions Act of 15 June 2018² (Fin­IA) on be­half of third parties.

(Art. 36 para. 2 CISA)

In re­la­tion to the min­im­um as­sets of a SICAV, Art­icle 35 ap­plies ac­cord­ingly.

¹In re­spect of a self-man­aged SICAV and an ex­tern­ally man­aged SICAV that del­eg­ates ad­min­is­tra­tion to an au­thor­ised fund man­age­ment com­pany and port­fo­lio man­age­ment to an­oth­er man­ager of col­lect­ive as­sets, com­pany share­hold­ers must provide a min­im­um in­vest­ment amount of 500,000 Swiss francs at the time of form­a­tion.

²Where the ex­tern­ally man­aged SICAV del­eg­ates ad­min­is­tra­tion and port­fo­lio man­age­ment to the same au­thor­ised fund man­age­ment com­pany, com­pany share- hold­ers must provide a min­im­um in­vest­ment amount of 250,000 Swiss francs at the time of form­a­tion.

³The min­im­um in­vest­ment amount must be main­tained at all times.

⁴A SICAV shall no­ti­fy FINMA of any short­fall im­me­di­ately.

(Art. 39 CISA)

¹The hold­ings provided by the com­pany share­hold­ers are in­cluded in the cap­it­al.

²The fol­low­ing must be de­duc­ted from the cap­it­al:

a.

any bal­ance sheet loss at­trib­ut­able to the com­pany share­hold­ers;

b.

any al­low­ances and pro­vi­sions at­trib­ut­able to the com­pany share­hold­ers;

c.

in­tan­gible as­sets (in­clud­ing start-up and or­gan­isa­tion­al costs as well as good­will) with the ex­cep­tion of soft­ware.

³The self-man­aged SICAV cal­cu­lates the re­quired level of cap­it­al ad­equacy in ac­cord­ance with Art­icle 59 of the Fin­an­cial In­sti­tu­tions Or­din­ance of 6 Novem­ber 2019¹ (FinIO).²

^3bisAn ex­tern­ally man­aged SICAV that del­eg­ates ad­min­is­tra­tion to an au­thor­ised fund man­age­ment com­pany and port­fo­lio man­age­ment to a man­ager of col­lect­ive as­sets cal­cu­lates the re­quired level of cap­it­al ad­equacy in ac­cord­ance with Art­icle 59 FinIO. It may de­duct 20 per­cent from this amount.³

^3terAn ex­tern­ally man­aged SICAV that del­eg­ates port­fo­lio man­age­ment to a bank pur­su­ant to the Fed­er­al Bank­ing Act of 8 Novem­ber 1934⁴ or to a se­cur­it­ies firm pur­su­ant to the Fin­IA⁵ with its re­gistered of­fice in Switzer­land may be ex­emp­ted by FINMA from the duty to in­clude its own re­sources in the as­sets.⁶

⁴Where an ex­tern­ally man­aged SICAV del­eg­ates ad­min­is­tra­tion and port­fo­lio man­age­ment to the same au­thor­ised fund man­age­ment com­pany, it is not re­quired to in­clude its own re­sources in the as­sets (Art. 59 para. 4 FinIO).⁷

⁵The pre­scribed ra­tio between the equity and total as­sets of a self-man­aged SICAV as well as an ex­tern­ally man­aged SICAV that del­eg­ates ad­min­is­tra­tion to an au­thor­ised fund man­age­ment com­pany and port­fo­lio man­age­ment to a man­ager of col­lect­ive as­sets shall be main­tained at all times.⁸

⁶A SICAV no­ti­fies FINMA of cap­it­al in­ad­equacy im­me­di­ately.

⁷FINMA reg­u­lates the de­tails.

(Art. 40 para. 4 CISA)

All shares have the same net is­sue price at the time of ini­tial is­sue of their cat­egory, ir­re­spect­ive of wheth­er they be­long to dif­fer­ent cat­egor­ies. This rep­res­ents the is­sue price pay­able by the in­vestors at the time of is­sue less any fees and in­cid­ent­al costs.

(Art. 42 para. 1 and 3 CISA)

¹Art­icles 37 and 38 ap­ply ac­cord­ingly.

²Com­pany share­hold­ers may re­deem their shares if:

a.

the ap­pro­pri­ate ra­tio between hold­ings of the com­pany share­hold­ers and total as­sets of the SICAV is main­tained even after re­demp­tion; and

b.

the min­im­um in­vest­ment amount is main­tained.

(Art. 42 para. 2 and 94 CISA)

In­vest­ments by a sub­fund in oth­er sub­funds of the same SICAV do not con­sti­tute an in­vest­ment in treas­ury shares.

(Art. 43 para. 1 let. f CISA)

Art­icle 39 ap­plies ac­cord­ingly.

(Art. 40 para. 4 and 78 para. 3 CISA)

¹Where provided by the art­icles of as­so­ci­ation, a SICAV may cre­ate, dis­solve or merge share classes with the ap­prov­al of FINMA.

²Art­icle 40 ap­plies ac­cord­ingly. The mer­ger re­quires the ap­prov­al of the gen­er­al meet­ing of share­hold­ers.

³The risk that a class of shares may be li­able for an­oth­er class must be dis­closed in the pro­spect­us.

(Art. 40 para. 4, 47 and 94 CISA)

¹Share­hold­ers have the right to vote on:

a.

the sub­fund in which they are in­ves­ted;

b.

the com­pany if the de­cision af­fects the SICAV as a whole.

²If the share of vot­ing rights as­signed to a sub­fund dif­fers sig­ni­fic­antly from the share of as­sets as­signed to the sub­fund, the share­hold­ers may at the gen­er­al meet­ing re­solve to split or merge the shares of a share cat­egory in ac­cord­ance with para­graph 1 let­ter b. FINMA must give its con­sent for such de­cision to be val­id.

³FINMA may or­der the split­ting or mer­ging of shares in a share class.

(Art. 44a CISA)

In re­la­tion to the cus­todi­an bank, Art­icle 15 para­graph 2 of the present Or­din­ance and Art­icle 53 FinIO² ap­ply ac­cord­ingly.

(Art. 43 and 44 CISA)

¹The con­tent and ap­prov­al of the in­vest­ment reg­u­la­tions are based on the pro­vi­sions on the fund con­tract, un­less the law or art­icles of as­so­ci­ation provide oth­er­wise.

²When con­ven­ing the gen­er­al meet­ing, the SICAV in­forms share­hold­ers in the form pre­scribed in the art­icles of as­so­ci­ation about:²

a.

which changes to the in­vest­ment reg­u­la­tions FINMA has veri­fied; and

b.

which of these changes FINMA has es­tab­lished as be­ing in com­pli­ance with the Act.

³Para­graphs 1 and 2 ap­ply to the art­icles of as­so­ci­ation ac­cord­ingly, provided the lat­ter reg­u­late the con­tents of the in­vest­ment reg­u­la­tions.

(Art. 50 and 94 CISA)

¹The art­icles of as­so­ci­ation may provide for gen­er­al meet­ings in re­spect of in­di­vidu­al sub­funds where de­cisions are in­volved which af­fect only such sub­funds.

²Share­hold­ers which to­geth­er hold at least 10 per­cent of the votes of all or some sub­funds may re­quest that items be in­cluded on the agenda for dis­cus­sion at the gen­er­al meet­ing of the SICAV or sub­fund.

³The gen­er­al meet­ing of the SICAV or sub­funds is re­spons­ible for amend­ing the in­vest­ment reg­u­la­tions provided such amend­ment:

a.

is not re­quired by law;

b.¹

af­fects the rights of share­hold­ers; or

c.

is not of an ex­clus­ively form­al nature.

⁴In the me­dia of pub­lic­a­tion, the SICAV pub­lishes the ma­ter­i­al amend­ments to the fund reg­u­la­tions re­solved by the gen­er­al meet­ing and ap­proved by FINMA, in­dic­at­ing the of­fices from which the amended word­ing may be ob­tained free of charge.

⁵The pro­vi­sion re­gard­ing im­port­ant res­ol­u­tions passed by the gen­er­al meet­ing of a com­pany lim­ited by shares (Art. 704 CO²) does not ap­ply.³

(Art. 51 CISA)

¹The board of dir­ect­ors has the fol­low­ing tasks:

a.

per­form­ing the du­ties re­quired un­der Art­icle 716a of the Swiss Code of Ob­lig­a­tions ¹;

b.

de­term­in­ing the prin­ciples of the in­vest­ment policy;

c.²

ap­point­ing the cus­todi­an bank or an in­sti­tu­tion in ac­cord­ance with Art­icle 44a para­graph 2 of the Act;

d.

cre­at­ing new sub­funds, where provided by the art­icles of as­so­ci­ation;

e.³

draw­ing up the pro­spect­us and the key in­form­a­tion doc­u­ment;

f.

ad­min­is­tra­tion.

²The tasks laid down in para­graph 1a–c may not be del­eg­ated.

³In a self-man­aged SICAV, the tasks defined in para­graph 1 let­ters d and e, in ad­di­tion to the ad­min­is­trat­ive sub-tasks defined in para­graph 1 let­ter f, spe­cific­ally risk man­age­ment, the struc­tur­ing of the in­tern­al con­trol sys­tem (ICS) and com­pli­ance, may only be del­eg­ated to the ex­ec­ut­ive board.

⁴In re­la­tion to the or­gan­isa­tion­al struc­ture of a self-man­aged SICAV, Art­icle 51 para­graph 1, Art­icle 52 para­graph 1 and Art­icle 53 FinIO⁴ ap­ply ac­cord­ingly.⁵

(Art. 36 para. 3 and 51 para. 5 CISA)

Art­icles 32 and 35 Fin­IA² ap­ply ac­cord­ingly to the del­eg­a­tion of tasks.

(Art. 53 ff. CISA)

¹Un­less spe­cified oth­er­wise, the per­cent­age re­stric­tions giv­en in this chapter re­late to the fund as­sets at mar­ket val­ues; they must be main­tained at all times.

²If the lim­its are ex­ceeded as a res­ult of mar­ket changes, the in­vest­ments must be re­stored to the per­mit­ted level with­in a reas­on­able peri­od, tak­ing due ac­count of the in­vestors' in­terests.

³Se­cur­it­ies funds and oth­er funds must com­ply with the in­vest­ment re­stric­tions with­in six months of launch.

⁴Real es­tate funds must com­ply with the in­vest­ment re­stric­tions with­in two years of launch.

⁵FINMA may ex­tend the time lim­its spe­cified in para­graphs 3 and 4 at the re­quest of the fund man­age­ment com­pany and the SICAV.

(Art. 53 ff. CISA)

¹With re­gard to the ad­min­is­tra­tion of col­lect­ive in­vest­ment schemes, the fund man­age­ment com­pany and the SICAV may de­ploy sub­si­di­ar­ies whose sole ob­ject is the hold­ing of as­sets for col­lect­ive in­vest­ment. FINMA reg­u­lates the de­tails.

²A SICAV may ac­quire mov­able and non-mov­able as­sets which are es­sen­tial for the dir­ect per­form­ance of its op­er­a­tions. FINMA reg­u­lates the de­tails.

(Art. 92 ff. CISA)

¹Um­brella funds may only com­prise sub­funds of the same type.

²The fol­low­ing types of fund qual­i­fy:

a.

se­cur­it­ies funds;

b.

real es­tate funds;

c.

oth­er funds for tra­di­tion­al in­vest­ments;

d.

oth­er funds for al­tern­at­ive in­vest­ments..

³In the case of col­lect­ive in­vest­ment schemes which in­clude sub­funds, the in­vest­ment re­stric­tions and tech­niques for each in­di­vidu­al sub­fund ap­ply.

(Art. 54 para. 1 and 2 CISA)

¹The fol­low­ing in­vest­ments are per­mit­ted:

a.

se­cur­it­ies in ac­cord­ance with Art­icle 71;

b.

de­riv­at­ive fin­an­cial in­stru­ments in ac­cord­ance with Art­icle 72;

c.

units in col­lect­ive in­vest­ment schemes which com­ply with the re­quire­ments spe­cified in Art­icle 73;

d.

money mar­ket in­stru­ments as spe­cified in Art­icle 74;

e.

sight or time de­pos­its with a term to ma­tur­ity not ex­ceed­ing twelve months held with banks dom­i­ciled in Switzer­land or in a mem­ber state of the European Uni­on or in an­oth­er coun­try provided that the bank is sub­ject to su­per­vi­sion in that coun­try which is equi­val­ent to the stand­ard of su­per­vi­sion in Switzer­land.

²The fol­low­ing are not per­mit­ted:

a.

in­vest­ments in pre­cious metals or pre­cious metals cer­ti­fic­ates, com­mod­it­ies or com­mod­ity cer­ti­fic­ates;

b.

short-selling of in­vest­ments in ac­cord­ance with para­graph 1 let­ters a, b, c and d.

³In­vest­ments in as­sets oth­er than those named in para­graph 1 may not ex­ceed 10 per­cent of the fund's total as­sets.

⁴...¹

(Art. 54 CISA)

¹Se­cur­it­ies are deemed to be equity or debt se­cur­it­ies pur­su­ant to Art­icle 54 para­graph 1 of the Act which em­body a par­ti­cip­a­tion right or claim or the right to ac­quire such se­cur­it­ies and rights by way of sub­scrip­tion or ex­change, spe­cific­ally war­rants.

²In­vest­ments in se­cur­it­ies from new is­sues are per­mit­ted only if the terms of is­sue provide for their ad­mis­sion to a stock ex­change or oth­er reg­u­lated mar­ket which is open to the pub­lic. If one year fol­low­ing pur­chase they are not yet ad­mit­ted on the stock ex­change or oth­er mar­ket open to the pub­lic, such se­cur­it­ies must be sold with­in one month.

³FINMA may form­al­ise the per­mit­ted in­vest­ments for a se­cur­it­ies fund in ac­cord­ance with the laws cur­rently in force in the European Com­munit­ies.¹

(Art. 54 and 56 CISA)

¹De­riv­at­ive fin­an­cial in­stru­ments are per­mit­ted if:

a.

their un­der­ly­ings are in­stru­ments as defined in Art­icle 70 para­graph 1 let­ters a-d, fin­an­cial in­dices, in­terest rates, ex­change rates, loans or cur­ren­cies;

b.

the un­der­ly­ings are in­stru­ments per­mit­ted by the fund reg­u­la­tions; and

c.

they are traded on a stock ex­change or oth­er reg­u­lated mar­ket open to the pub­lic.

²In the case of trans­ac­tions in­volving OTC de­riv­at­ives, the fol­low­ing con­di­tions shall be com­plied with in ad­di­tion:

a.

The coun­ter­party is a reg­u­lated fin­an­cial in­ter­me­di­ary spe­cial­iz­ing in such trans­ac­tions.

b.

The OTC de­riv­at­ives are traded daily or may be re­turned to the is­suer at any time. In ad­di­tion, it is pos­sible for them to be val­ued in a re­li­able and trans- par­ent man­ner.

³A se­cur­it­ies fund's over­all ex­pos­ure as­so­ci­ated with de­riv­at­ive fin­an­cial in­stru­ments may not ex­ceed 100 per­cent of the net as­sets. The over­all ex­pos­ure may not ex­ceed 200 per­cent of the fund's total net as­sets. When tak­ing ac­count of the pos­sib­il­ity of tem­por­ary bor­row­ing amount­ing to no more than 10 per­cent of the net as­sets (Art. 77 para 2), the over­all ex­pos­ure may not ex­ceed 210 per­cent of the fund's total net as­sets.

⁴War­rants must be treated in the same man­ner as fin­an­cial in­stru­ments.

(Art. 54 and 57 para. 1 CISA)

¹The fund man­age­ment com­pany and the SICAV may only in­vest in tar­get funds if:

a.

their doc­u­ments re­strict in­vest­ments in oth­er tar­get funds for their part to a total of 10 per­cent;

b.

these funds are sub­ject to pro­vi­sions equi­val­ent to those per­tain­ing to se­cur­it­ies funds in re­spect of the ob­ject, or­gan­isa­tion, in­vest­ment policy, in­vestor pro­tec­tion, risk di­ver­si­fic­a­tion, as­set se­greg­a­tion, bor­row­ing, lend­ing, shortselling of se­cur­it­ies and money mar­ket in­stru­ments, is­sue and re­demp­tion of units and con­tent of the semi-an­nu­al and an­nu­al re­ports;

c.

the tar­get funds are ad­mit­ted as col­lect­ive in­vest­ment schemes in the coun­try of dom­i­cile, where they are sub­ject to in­vestor pro­tec­tion which is equi­val­ent to that in Switzer­land, and in­ter­na­tion­al leg­al as­sist­ance is en­sured.

²They may in­vest a max­im­um of:

a.

20 per­cent of the fund's as­sets in units of the same tar­get fund; and

b.¹

30 per­cent of the fund’s as­sets in units of tar­get funds that do not meet the rel­ev­ant dir­ect­ives of the European Uni­on (un­der­tak­ings for col­lect­ive in­vest­ment in trans­fer­able se­cur­it­ies, UCITS) but are equi­val­ent to these or Swiss se­cur­it­ies funds pur­su­ant to Art­icle 53 of the Act.

³In re­la­tion to in­vest­ments in tar­get funds, Art­icles 78-84 do not ap­ply.

⁴If, in ac­cord­ance with the fund reg­u­la­tions, a sig­ni­fic­ant por­tion of the fund as­sets may be in­ves­ted in tar­get funds:

a.²

the fund reg­u­la­tions and the pro­spect­us must con­tain in­form­a­tion about the max­im­um level of man­age­ment fees to be borne by the in­vest­ing col­lect­ive in­vest­ment scheme it­self as well as by the tar­get funds;

b.

the an­nu­al re­port must spe­cify the max­im­um por­tion of man­age­ment fees that the in­vest­ing col­lect­ive in­vest­ment scheme and the tar­get funds may each bear.

(Art. 54 and 57 para. 1 CISA)

¹A feed­er fund is a col­lect­ive in­vest­ment scheme that by way of derog­a­tion from Art­icle 73 para­graph 2 let­ter a in­vests at least 85 per­cent of the fund’s as­sets in units of the same tar­get fund (mas­ter fund).

²The mas­ter fund is a Swiss col­lect­ive in­vest­ment scheme of the same type as the feed­er fund but is not it­self a feed­er fund and does not hold any units in such a fund.

³A feed­er fund may in­vest up to 15 per­cent of its fund as­sets in li­quid as­sets (Art. 75) or de­riv­at­ive fin­an­cial in­stru­ments (Art. 72). The de­riv­at­ive fin­an­cial in­stru­ments may only be used for hedging pur­poses.

⁴FINMA reg­u­lates the de­tails.

(Art. 54 para. 1 CISA)

¹The fund man­age­ment com­pany and the SICAV may ac­quire money mar­ket in­stru­ments if these are li­quid and can be val­ued and are traded on a stock ex­change or oth­er reg­u­lated mar­ket that is open to the pub­lic.

²Money mar­ket in­stru­ments that are not traded on a stock ex­change or oth­er reg­u­lated mar­ket that is open to the pub­lic may only be ac­quired if the is­sue or the is­suer is sub­ject to pro­vi­sions re­gard­ing cred­it­or or in­vestor pro­tec­tion and if the money mar­ket in­stru­ments are is­sued or guar­an­teed by:

a.

the Swiss Na­tion­al Bank;

b.

the cent­ral bank of a mem­ber state of the European Uni­on;

c.

the European Cent­ral Bank;

d.

the European Uni­on;

e.

the European In­vest­ment Bank;

f.

the Or­gan­isa­tion for Eco­nom­ic Co­oper­a­tion and De­vel­op­ment (OECD);

g.

an­oth­er state in­clud­ing its con­stitu­ent parts;

h.

a pub­lic in­ter­na­tion­al body of which Switzer­land or at least one mem­ber state of the European Uni­on is a mem­ber;

i.

a pub­lic body;

j.

a com­pany whose se­cur­it­ies are traded on a stock ex­change or oth­er reg­u­lated mar­ket open to the pub­lic;

k.¹

a bank, se­cur­it­ies firm or oth­er in­sti­tu­tion that is sub­ject to su­per­vi­sion equi­val­ent to that in Switzer­land.

(Art. 54 para. 2 CISA)

Li­quid as­sets com­prise bank cred­it bal­ances and claims arising from re­pur­chase agree­ments at sight or on de­mand with ma­tur­it­ies of up to twelve months.

(Art. 55 para. 1 let. a and b CISA)

¹Se­cur­it­ies lend­ing and re­pur­chase agree­ments may only be used for the ef­fi­cient man­age­ment of the fund's as­sets. The cus­todi­an bank is li­able for the prop­er, ef­fi­cient set­tle­ment of se­cur­it­ies lend­ing and re­pur­chase trans­ac­tions.

²Banks, brokers, in­sur­ance in­sti­tu­tions and se­cur­it­ies clear­ing or­gan­isa­tions may be used as bor­row­ers in the con­text of se­cur­it­ies lend­ing provided they spe­cial­ise in se­cur­it­ies lend­ing and fur­nish col­lat­er­al which cor­res­ponds to the scope and risk of the pro­posed trans­ac­tions. Re­pur­chase trans­ac­tions may be con­duc­ted un­der the same con­di­tions with the in­sti­tu­tions men­tioned.

³Se­cur­it­ies lend­ing and re­pur­chase trans­ac­tions are gov­erned by a stand­ard­ised frame­work agree­ment.

(Art. 55 para. 1 let. c and d and para. 2 CISA)

¹At the ex­pense of a se­cur­it­ies fund:

a.

no loans may be gran­ted, nor may any guar­an­tees be con­cluded;

b.

no more than 25 per­cent of the fund's net as­sets may be pledged or own­er- ship there­of be trans­ferred as col­lat­er­al.

²Se­cur­it­ies funds may bor­row the equi­val­ent of up to 10 per­cent of the net as­sets on a tem­por­ary basis.

³Se­cur­it­ies lend­ing and re­pur­chase agree­ments in the form of re­verse re­pos are not deemed to be lend­ing pur­su­ant to para­graph 1a.

⁴Re­pur­chase agree­ments in the form of re­pos pur­su­ant to para­graph 2 are deemed to be bor­row­ing un­less the funds ob­tained are used as part of an ar­bit­rage trans­ac­tion for the ac­quis­i­tion of se­cur­it­ies of a sim­il­ar type in con­nec­tion with a re­verse repo.

(Art. 57 CISA)

¹In­clud­ing the de­riv­at­ive fin­an­cial in­stru­ments, the fund man­age­ment com­pany and the SICAV may in­vest up to 10 per­cent of the fund's as­sets in se­cur­it­ies or money mar­ket in­stru­ments of the same is­suer.

²The total value of the se­cur­it­ies and money mar­ket in­stru­ments of the is­suers in which more than 5 per­cent of the fund's as­sets are in­ves­ted may not ex­ceed 40 per­cent of the fund's as­sets. This lim­it does not ap­ply to sight or time de­pos­its as defined in Art­icle 79 or to trans­ac­tions in OTC de­riv­at­ives as defined in Art­icle 80, to which the coun­ter­party is a bank as defined in Art­icle 70 para­graph 1e.

(Art. 57 CISA)

The fund man­age­ment com­pany and the SICAV may in­vest up to 20 per­cent of the fund's as­sets in sight and time de­pos­its held with the same bank. In­vest­ments in bank de­pos­its (Art. 70 para. 1 let. e) in ad­di­tion to li­quid as­sets (Art. 75) are both sub­ject to this lim­it.

(Art. 57 CISA)

¹The fund man­age­ment com­pany and the SICAV may in­vest up to 5 per­cent of the fund's as­sets in OTC trans­ac­tions with the same coun­ter­party.

²Where the coun­ter­party is a bank as defined in Art­icle 70 para­graph 1e, this lim­it is raised to 10 per­cent of the fund's as­sets.

³The de­riv­at­ive fin­an­cial in­stru­ments and claims against coun­ter­parties arising from OTC trans­ac­tions are sub­ject to the reg­u­la­tions on risk di­ver­si­fic­a­tion as defined in Art­icles 73 and 78-84. This does not ap­ply to de­riv­at­ives on in­dices which com­ply with the con­di­tions defined in Art­icle 82 para­graph 1 let­ter b.

⁴Where the claims arising from OTC trans­ac­tions are hedged us­ing col­lat­er­al in the form of li­quid as­sets such claims are not in­cluded in the cal­cu­la­tion of coun­ter­party risk. FINMA reg­u­lates the de­tails of the col­lat­er­al re­quire­ments. In do­ing so, it shall take ac­count of in­ter­na­tion­al stand­ards.¹

(Art. 57 CISA)

¹In­vest­ments, de­pos­its and claims in ac­cord­ance with Art­icles 78–80 from the same is­suer may not ex­ceed 20 per­cent of the fund's over­all as­sets.

²In­vest­ments and money mar­ket in­stru­ments in ac­cord­ance with Art­icle 78 from the same group of com­pan­ies may not ex­ceed 20 per­cent of the fund's over­all as­sets.

³The lim­its defined in Art­icles 78–80 and 83 para­graph 1 may not be ac­cu­mu­lated.

⁴In the case of um­brella funds, these lim­its ap­ply to each in­di­vidu­al sub­fund.

⁵Com­pan­ies which form a group in ac­cord­ance with in­ter­na­tion­al ac­count­ing reg­u­la­tions are deemed to be a single is­suer.

(Art. 57 CISA)

¹The fund man­age­ment com­pany and the SICAV may in­vest a max­im­um of 20 per­cent of the fund's as­sets in se­cur­it­ies or money mar­ket in­stru­ments from the same is­suer if:

a.

the fund reg­u­la­tions provide for the track­ing of an in­dex of equity or debt se­cur­it­ies which is re­cog­nized by FINMA (in­dex funds); and

b.

the in­dex is suf­fi­ciently di­ver­si­fied, rep­res­ent­at­ive of the mar­ket to which it relates, and is pub­lished in an ap­pro­pri­ate man­ner.

²The lim­it is in­creased to 35 per­cent for any se­cur­it­ies or money mar­ket in­stru­ments from the same is­suer where such in­stru­ments strongly dom­in­ate reg­u­lated mar­kets. This ex­emp­tion only ap­plies in re­la­tion to a single is­suer.

³The in­vest­ments defined in this art­icle are not con­sidered when ob­serving the lim­it of 40 per­cent defined in Art­icle 78 para­graph 2.

(Art. 57 para. 1 CISA)

¹The fund man­age­ment com­pany and the SICAV may in­vest up to 35 per­cent of the fund's as­sets in se­cur­it­ies or money mar­ket in­stru­ments of the same is­suer provided such in­stru­ments are is­sued or guar­an­teed by:

a.

an OECD mem­ber coun­try;

b.

a pub­lic body from the OECD;

c.

a pub­lic in­ter­na­tion­al body of which Switzer­land or a mem­ber state of the European Uni­on is a mem­ber.

²Sub­ject to the ap­prov­al of FINMA, they may in­vest up to 100 per­cent of the fund's as­sets in se­cur­it­ies or money mar­ket in­stru­ments of the same is­suer. In such event the fol­low­ing rules must be ob­served:

a.

the in­vest­ments are spread across se­cur­it­ies or money mar­ket in­stru­ments from at least six dif­fer­ent is­sues;

b.

up to 30 per­cent of the fund's as­sets are in­ves­ted in se­cur­it­ies and money mar­ket in­stru­ments of the same is­sue;

c.

ref­er­ence is made in the pro­spect­us and in the ad­vert­ising ma­ter­i­al to the spe­cif­ic ap­prov­al of FINMA; the is­suers in which more than 35 per­cent of the fund's as­sets are in­ves­ted are also lis­ted therein;

d.

the fund reg­u­la­tions in­clude a list­ing of the is­suers in which more than 35 per­cent of the fund's as­sets may be in­ves­ted, to­geth­er with the cor­res­pond­ing guar­ant­ors.

³Provided the pro­tec­tion of in­vestors is not en­dangered, FINMA grants au­thor­isa­tion.

⁴The in­vest­ments defined in this art­icle are not con­sidered when ob­serving the lim­it of 40 per­cent defined in Art­icle 78 para­graph 2.

(Art. 57 para. 2 CISA)

¹Neither the fund man­age­ment com­pany nor the SICAV may ac­quire equity se­cur­it­ies rep­res­ent­ing more than 10 per­cent of the over­all vot­ing rights in a com­pany or which would en­able it to ex­ert a ma­ter­i­al in­flu­ence on the man­age­ment of an is­su­ing com­pany.

²FINMA may grant an ex­cep­tion provided the fund man­age­ment com­pany or the SICAV provides evid­ence that it does not ex­ert a ma­ter­i­al in­flu­ence.

³The fund man­age­ment com­pany and the SICAV may ac­quire the fol­low­ing on be­half of the fund as­sets:

a.

up to 10 per­cent of the non-vot­ing equity pa­per, debt in­stru­ments or money mar­ket in­stru­ments of the same is­suer;

b.

up to 25 per­cent of the units in oth­er col­lect­ive in­vest­ment schemes which meets the re­quire­ments spe­cified in Art­icle 73.

⁴The lim­it defined in para­graph 3 does not ap­ply if, at the time of ac­quis­i­tion, the gross amount of the debt in­stru­ments, the money mar­ket in­stru­ments or the units in oth­er col­lect­ive in­vest­ment schemes can­not be cal­cu­lated.

⁵The lim­its defined in para­graphs 1 and 3 do not ap­ply to se­cur­it­ies and money mar­ket in­stru­ments which are is­sued or guar­an­teed by a coun­try or pub­lic body be­long­ing to the OECD or by in­ter­na­tion­al pub­lic bod­ies of which Switzer­land or a mem­ber state of the European Uni­on is a mem­ber.

(Art. 75 CISA)

¹The pro­spect­us must provide in­form­a­tion about the cat­egor­ies of in­vest­ment in­stru­ments in which the fund is in­ves­ted and wheth­er trans­ac­tions in­volving de­riv­at­ive fin­an­cial in­stru­ments are con­duc­ted. Where trans­ac­tions in­volving de­riv­at­ive fin­an­cial in­stru­ments are con­duc­ted, an ex­plan­a­tion must be giv­en as to wheth­er such trans­ac­tions are con­duc­ted as part of the in­vest­ment strategy or for the hedging of in­vest­ment po­s­i­tions, and how the use of such in­stru­ments af­fects the risk pro­file of the se­cur­it­ies fund.

²Where the fund man­age­ment com­pany or the SICAV are per­mit­ted to in­vest the fund's as­sets primar­ily in in­vest­ments oth­er than those defined in Art­icle 70 para­graph 1 let­ters a and e, or where they con­sti­tute an in­dex fund (Art. 82), spe­cif­ic ref­er­ence must be made to this fact in the pro­spect­us and in the ad­vert­ising ma­ter­i­al.

³Where the net as­sets of a se­cur­it­ies fund ex­hib­it high volat­il­ity or a high lever­age ef­fect ow­ing to the com­pos­i­tion of the in­vest­ments or the in­vest­ment tech­niques ap­plied, spe­cif­ic ref­er­ence must be made to this fact in the pro­spect­us and in the ad­vert­ising ma­ter­i­al.

(Art. 59 para. 1 and 62 CISA)

¹The in­vest­ments of real es­tate funds or real es­tate SICAVs must be spe­cific­ally named in the fund reg­u­la­tions.¹

²The fol­low­ing real es­tate, which is entered on the basis of the re­gis­tra­tion of the fund man­age­ment com­pany, SICAV or fund man­age­ment com­pany ap­poin­ted by the SICAV pur­su­ant to para­graph 2^bis, is deemed to be real es­tate pur­su­ant to Art­icle 59 para­graph 1 let­ter a of the Act:²

a.

res­id­en­tial build­ings;

b.

prop­er­ties which are used ex­clus­ively or mainly for com­mer­cial pur­poses; mainly means where the in­come from the com­mer­cial ele­ment ac­counts for at least 60 per­cent of the total in­come from real es­tate (com­mer­cially used prop­er­ties);

c.

mixed-use build­ings used for res­id­en­tial as well as com­mer­cial pur­poses; mixed means where the in­come from the com­mer­cial ele­ment ac­counts for more than 20 per­cent but less than 60 per­cent of the in­come from real es­tate;

d.

con­domin­i­ums;

e.

build­ing land (in­clud­ing prop­er­ties for de­moli­tion) and build­ings un­der con­struc­tion;

f.

lease­hold land.

^2bisThe real es­tate must be entered in the Land Re­gister un­der the name of the fund man­age­ment com­pany or SICAV with a re­mark to the ef­fect that it be­longs to the real es­tate fund. Where the real es­tate fund or SICAV un­der whose name the real es­tate is re­gistered has sub­funds, the sub­fund to which the real es­tate be­longs must be spe­cified.³

³The fol­low­ing in­vest­ments are also per­mit­ted:

a.

mort­gage notes or oth­er con­trac­tu­al charges on prop­erty;

b.

par­ti­cip­a­tions in and claims against real es­tate com­pan­ies as defined in Art­icle 59 para­graph 1 let­ter b of the Act;

c.

units in oth­er real es­tate funds (in­clud­ing real es­tate in­vest­ment trusts or RE­ITs) and real es­tate in­vest­ment com­pan­ies and cer­ti­fic­ates which are traded on a stock ex­change or oth­er reg­u­lated mar­ket which is open to the pub­lic, as defined in Art­icle 59 para­graph 1 let­ter c of the Act;

d.

for­eign real es­tate se­cur­it­ies as defined in Art­icle 59 para­graph 1 let­ter d of the Act.

⁴Un­developed plots of land be­long­ing to a real es­tate fund must be con­nec­ted to the in­fra­struc­ture net­work and suit­able for im­me­di­ate de­vel­op­ment and must also pos­sess leg­ally ef­fect­ive plan­ning per­mis­sion for their de­vel­op­ment. Con­struc­tion work must com­mence pri­or to the ex­piry of the peri­od for which the rel­ev­ant plan­ning per­mis­sion is val­id.⁴

(Art. 62 CISA)

¹Real es­tate funds must spread their in­vest­ments over at least ten prop­er­ties. Res­id­en­tial es­tates which have been built us­ing the same prin­ciples of con­struc­tion and neigh­bour­ing plots of land are deemed to be a single prop­erty.

²The mar­ket value of a single prop­erty may not ex­ceed 25 per­cent of the fund's as­sets.

³The fol­low­ing lim­its ex­pressed as a per­cent­age of the fund's as­sets ap­ply to the in­vest­ments defined in a–d:

a.

up to 30 per­cent of the fund's as­sets may be in­ves­ted in build­ing land, in­clud­ing prop­er­ties for de­moli­tion, and build­ings un­der con­struc­tion;

b.¹

up to 30 per­cent of the fund's as­sets may be in­ves­ted in lease­hold land;

c.

up to 10 per­cent of the fund's as­sets may be in­ves­ted in mort­gage notes and oth­er rights of li­en on real es­tate;

d.

up to 25 per­cent of the fund's as­sets may be in­ves­ted in oth­er real es­tate funds and real es­tate in­vest­ment com­pan­ies as defined in Art­icle 86 para­graph 3 let­ter c.

⁴The in­vest­ments defined in para­graph 3 let­ters a and b may to­geth­er ac­count for up to 40 per­cent of the fund's as­sets.²

⁵FINMA may grant ex­emp­tions in jus­ti­fied in­di­vidu­al in­stances.

(Art. 59 para. 2 CISA)

¹The fund man­age­ment com­pany and the SICAV are deemed to ex­ert a dom­in­ant in­flu­ence if they have a ma­jor­ity of the co-own­er­ship shares and votes.

²In a set of rules gov­ern­ing use and ad­min­is­tra­tion as defined in Art­icle 647 para­graph of the Swiss Civil Code (CC)¹ they shall re­tain all rights, meas­ures and ac­tions provided for in Art­icles 647a–651 CC.

³The right of pre-emption pur­su­ant to Art­icle 682 CC may not be sus­pen­ded un­der con­tract.

⁴Co-own­er­ship of com­mon fa­cil­it­ies as­so­ci­ated with prop­er­ties held by the col­lect­ive in­vest­ment scheme which are part of a more ex­tens­ive de­vel­op­ment must not grant a con­trolling in­flu­ence. In such cases, the right of pre-emption pur­su­ant to para­graph 3 may be sus­pen­ded un­der con­tract.

(Art. 60 CISA)

¹Li­ab­il­it­ies are deemed to be bor­row­ings, ob­lig­a­tions from busi­ness activ­it­ies, in ad­di­tion to all claims arising from units on which no­tice has been giv­en.

²Short-term fixed in­terest se­cur­it­ies are deemed to be debt se­cur­it­ies with a term or re­sid­ual term to ma­tur­ity of up to twelve months.

³Funds avail­able at short no­tice are deemed to be cash on hand, postal check¹ and bank ac­count de­pos­its at sight and on de­mand with ma­tur­it­ies of up to twelve months, as well as guar­an­teed cred­it fa­cil­it­ies with a bank for up to 10 per­cent of the fund's net as­sets. The cred­it fa­cil­it­ies must be in­cluded in the max­im­um level of pledging per­mit­ted pur­su­ant to Art­icle 96 para­graph 1.

(Art. 65 CISA)

Fixed-in­come se­cur­it­ies with a term or re­sid­ual term to ma­tur­ity of up to 24 months may be held as col­lat­er­al for im­pend­ing con­struc­tion pro­jects.

(Art. 61 CISA)

De­riv­at­ive fin­an­cial in­stru­ments are per­mit­ted for the hedging of in­terest rate, cur­rency, cred­it and mar­ket risk. The pro­vi­sions ap­plic­able to se­cur­it­ies funds (Art. 72) ap­ply ac­cord­ingly.

(Art. 63 para. 2 and 3 CISA)

¹In par­tic­u­lar, closely re­lated per­sons in­clude:

a.

the fund man­age­ment com­pany, SICAV, cus­todi­an bank and their agents, spe­cific­ally ar­chi­tects and build­ing con­tract­ors com­mis­sioned by them;

b.

the mem­bers of the board of dir­ect­ors and em­ploy­ees of the fund man­age­ment com­pany or SICAV;

c.

the board of dir­ect­ors and mem­bers of the ex­ec­ut­ive board as well as em­ploy­ees of the cus­todi­an bank ap­poin­ted to mon­it­or the real es­tate funds;

d.

the audit com­pany and the em­ploy­ees en­trus­ted with the audit­ing of the real es­tate funds;

e.

the valu­ation ex­perts;

f.

the real es­tate com­pan­ies not be­long­ing 100 per­cent to the real es­tate fund and mem­bers of the board of dir­ect­ors and em­ploy­ees of such real es­tate com­pan­ies;

g.

the prop­erty man­age­ment busi­nesses en­trus­ted with the man­age­ment of the real es­tate and mem­bers of the board of dir­ect­ors and em­ploy­ees of such prop­erty man­age­ment busi­nesses;

h.

the sig­ni­fic­ant equity hold­ers pur­su­ant to Art­icle 14 para­graph 3 of the Act of the com­pan­ies men­tioned in let­ters a–g above.

²Agents pur­su­ant to para­graph 1 let­ter a are not deemed to be closely re­lated per­sons if evid­ence can be provided that they neither ex­ert nor have ex­er­ted dir­ect or dir­ect in­flu­ence on the fund man­age­ment com­pany or the SICAV and the fund man­age­ment com­pany or SICAV are not biased in the mat­ter in any oth­er way.

(Art. 64 CISA)

¹Real es­tate which the fund man­age­ment com­pany or SICAV wish to pur­chase must be val­ued in ad­vance.¹

²The valu­ation ex­pert shall phys­ic­ally in­spect the prop­erty when per­form­ing the valu­ation.

³In the event of a sale, a new valu­ation may be waived if:

a.

the ex­ist­ing valu­ation is no older than three months; and

b.

there has not been any ma­ter­i­al change in the situ­ation.²

⁴The fund man­age­ment com­pany and the SICAV must ex­plain to the audit com­pany for the reas­on for any sale price which is be­low the es­tim­ated valu­ation or pur­chase price which is above such valu­ation.

(Art. 64 CISA)¹

¹The mar­ket value of the prop­er­ties be­long­ing to the real es­tate fund must be re­appraised by the valu­ation ex­perts at the end of each ac­count­ing year.

²The prop­er­ties must be phys­ic­ally in­spec­ted by the valu­ation ex­perts at least every three years.

³The valu­ation ex­perts must provide the audit com­pany with jus­ti­fic­a­tion for their meth­od of valu­ation.

⁴Where the fund man­age­ment com­pany and the SICAV do not ad­opt the re­vised valu­ation fig­ure in their ac­counts, they must ex­plain this to the audit com­pany.

(Art. 64 and 65 CISA)¹

¹In re­la­tion to con­struc­tion pro­jects, the fund man­age­ment com­pany and the SICAV shall in­struct at least one valu­ation ex­pert to ex­am­ine wheth­er or not the prob­able costs are reas­on­able and in ac­cord­ance with the pre­vail­ing mar­ket situ­ation.

²Fol­low­ing the com­ple­tion of the build­ing, the fund man­age­ment com­pany and the SICAV shall in­struct at least one valu­ation ex­pert to as­sess the mar­ket value.

(Art. 67 CISA)¹

¹The fund man­age­ment com­pany and the SICAV shall pub­lish in the me­dia of pub­lic­a­tion the mar­ket value of the fund's as­sets and res­ult­ing net as­set value of the fund units sim­ul­tan­eously with the an­nounce­ment to the bank or se­cur­it­ies firm en­trus­ted with the reg­u­lar on and off-ex­change trad­ing of the units of the real es­tate fund.²

²In re­la­tion to real es­tate funds which are traded on a stock ex­change or oth­er reg­u­lated mar­ket open to the pub­lic, the rel­ev­ant reg­u­la­tions gov­ern­ing stock trad­ing must also be ob­served.

(Art. 65 CISA)

¹In re­la­tion to pledging land and ced­ing the rights of li­en as col­lat­er­al pur­su­ant to Art­icle 65 para­graph 2 of the Act, the en­cum­brance may not ex­ceed on av­er­age one third of the mar­ket value of all real es­tate as­sets.¹

^1bisTo safe­guard li­quid­ity, the charge may be tem­por­ar­ily and ex­cep­tion­ally in­creased to half the mar­ket value where:

a.

pro­vi­sion is made in the fund reg­u­la­tions; and

b.

the in­terests of the in­vestors are safe­guarded.²

^1terAs part of its audit of the real es­tate fund, the audit com­pany ex­presses its opin­ion on the con­di­tions pur­su­ant to para­graph 1^bis.³

²Where the fund man­age­ment com­pany and the SICAV com­mis­sion the con­struc­tion of build­ings or carry out the re­fur­bish­ment of build­ings, they may dur­ing the peri­od of pre­par­a­tion, con­struc­tion or re­fur­bish­ment cred­it the in­come state­ment of the real es­tate fund for build­ing land and build­ings un­der con­struc­tion at the pre­vail­ing mar­ket rate, provided the costs do not ex­ceed the es­tim­ated mar­ket value as a res­ult.

(Art. 66 CISA)

¹Units may be is­sued at any time. This may only be ef­fected in tranches.

²The fund man­age­ment com­pany and SICAV shall spe­cify at least:

a.

the planned num­ber of new units to be is­sued;

b.

the planned sub­scrip­tion ra­tio for the ex­ist­ing in­vestors;

c.

the is­su­ing meth­od for the sub­scrip­tion rights.

³The valu­ation ex­perts shall re­view the mar­ket value of each prop­erty in or­der to cal­cu­late the net as­set value and de­term­ine the is­sue price.

(Art. 66 CISA)

Units on which no­tice has been giv­en in the course of an ac­count­ing year may be re­deemed early by the fund man­age­ment com­pany and the SICAV at the close of said ac­count­ing year, provid­ing:

a.¹

the in­vestor has stated this wish in writ­ing or in an­oth­er form demon­strable via text at the time of serving no­tice;

b.

the wishes of all in­vestors who have re­ques­ted early re­demp­tion can be met.

(Art. 69 CISA)

¹The fol­low­ing in­vest­ments are spe­cific­ally ad­mit­ted for oth­er funds:

a.

se­cur­it­ies;

b.

units in col­lect­ive in­vest­ment schemes;

c.

money mar­ket in­stru­ments;

d.

sight and time de­pos­its with a term of up to twelve months;

e.

pre­cious metals;

f.

de­riv­at­ive fin­an­cial in­stru­ments whose un­der­ly­ings are se­cur­it­ies, col­lect­ive in­vest­ment schemes, money mar­ket in­stru­ments, de­riv­at­ive fin­an­cial in­stru­ments, in­dices, in­terest rates, ex­change rates, loans, cur­ren­cies, pre­cious metals, com­mod­it­ies or sim­il­ar in­stru­ments;

g.

struc­tured products re­lat­ing to se­cur­it­ies, col­lect­ive in­vest­ment schemes, money mar­ket in­stru­ments, de­riv­at­ive fin­an­cial in­stru­ments, in­dices, in­terest rates, ex­change rates, cur­ren­cies, pre­cious metals, com­mod­it­ies or sim­il­ar in­stru­ments.

²In the case of oth­er funds for al­tern­at­ive in­vest­ments, FINMA may ad­mit oth­er in­vest­ments such as com­mod­it­ies and the cor­res­pond­ing com­mod­ity cer­ti­fic­ates.¹

³In­vest­ments as defined in Art­icle 69 para­graph 2 of the Act must be ex­pli­citly named in the fund reg­u­la­tions.

⁴In the case of in­vest­ments in units of col­lect­ive in­vest­ment schemes, Art­icle 73 para­graph 4 ap­plies ac­cord­ingly.

(Art. 70 para. 2 and 71 para. 2 CISA)

¹Oth­er funds for tra­di­tion­al in­vest­ments may:

a.

raise loans for an amount not ex­ceed­ing 25 per­cent of the fund's net as­sets;

b.¹

pledge or cede as col­lat­er­al no more than 60 per­cent of the fund's net as­sets;

c.

com­mit to an over­all ex­pos­ure of up to 225 per­cent of the fund's net as­sets;

d.

en­gage in short-selling.

²Oth­er funds for al­tern­at­ive in­vest­ments may:

a.

raise loans for an amount not ex­ceed­ing 50 per­cent of the fund's net as­sets;

b.²

pledge or cede as col­lat­er­al no more than 100 per­cent of the fund's net as­sets;

c.

com­mit to an over­all ex­pos­ure of up to 600 per­cent of the fund's net as­sets;

d.

en­gage in short-selling.

³The in­vest­ment re­stric­tions shall be set out ex­pli­citly in the fund reg­u­la­tions. Such reg­u­la­tions shall also gov­ern the nature and scale of short-selling per­mit­ted.

(Art. 69–71 CISA)

FINMA may in in­di­vidu­al cases grant a derog­a­tion from the reg­u­la­tions per­tain­ing to:

a.

the per­mit­ted in­vest­ments;

b.

the in­vest­ment tech­niques;

c.

the re­stric­tions;

d.

the risk di­ver­si­fic­a­tion.

(Art. 71 para. 3 CISA)

¹The no­tice re­gard­ing spe­cial risks (warn­ing clause) re­quires the ap­prov­al of FINMA.

²The warn­ing clause must be placed on the first page of the fund reg­u­la­tions, the pro­spect­us and the key in­form­a­tion doc­u­ment in ac­cord­ance with Art­icles 58–63 and 66 FinSA¹, and in all cases in the form in which it was ap­proved by FINMA.²

(Art. 72 CISA)

¹The cus­todi­an bank must have an or­gan­isa­tion­al struc­ture that is ap­pro­pri­ate to its tasks and em­ploy per­son­nel who pos­sess suit­able, rel­ev­ant qual­i­fic­a­tions for their activ­ity.

²For the ful­fil­ment of its activ­it­ies as cus­todi­an bank, it has at least three full-time em­ploy­ees with sig­nat­ory powers.

(Art. 72 para. 2 CISA)

The cus­todi­an bank shall no­ti­fy the audit com­pany of the ex­ec­ut­ive per­sons en­trus­ted with the tasks of cus­todi­an bank activ­ity.

(Art. 73 CISA)

¹The cus­todi­an bank has the fol­low­ing tasks:

a.

It is re­spons­ible for ac­count and safe­keep­ing ac­count man­age­ment on be­half of the col­lect­ive in­vest­ment schemes, but does not have in­de­pend­ent ac­cess to their as­sets.

b.

It en­sures that in the case of trans­ac­tions re­lat­ing to the as­sets of the col­lect­ive in­vest­ment scheme the counter-value is trans­ferred thereto with­in the usu­al time lim­it.

c.

It no­ti­fies the fund man­age­ment com­pany or col­lect­ive in­vest­ment scheme if the counter-value is not re­fun­ded with­in the usu­al time lim­it and where pos­sible re­quests re­im­burse­ment for the as­set item con­cerned from the coun­ter­party.

d.

It keeps the re­quired re­cords and ac­counts in such man­ner that it is at all times able to dis­tin­guish between the as­sets held in safe cus­tody of the in­di­vidu­al col­lect­ive in­vest­ment schemes.

e.

In re­la­tion to as­sets that can­not be placed in safe cus­tody, it veri­fies own­er- ship of the fund man­age­ment com­pany or col­lect­ive in­vest­ment scheme and keeps a re­cord there­of.¹

²In the case of real es­tate funds, it shall be re­spons­ible for the safe­keep­ing of mort­gage notes against which no loans have been raised, in ad­di­tion to the shares in real es­tate com­pan­ies. It may hold ac­counts with third parties for the pur­pose of the on­go­ing man­age­ment of real es­tate as­sets.

³In the case of col­lect­ive in­vest­ment schemes com­pris­ing sub­funds, all du­ties shall be per­formed by the same cus­todi­an bank.

(Art. 74 CISA)

¹Art­icle 41 ap­plies ac­cord­ingly to the change in cus­todi­an bank of a con­trac­tu­al fund.

²The de­cision to change cus­todi­an bank shall be pub­lished im­me­di­ately in the me­dia of pub­lic­a­tion of the SICAV.

(Art. 73 para. 2 and 2^bis CISA)

Where the cus­todi­an bank trans­fers safe­keep­ing of the fund’s as­sets to a third-party cus­todi­an or cent­ral se­cur­it­ies de­pos­it­ory in Switzer­land or abroad, it shall veri­fy and mon­it­or wheth­er the lat­ter:²

a.

pos­sesses an ap­pro­pri­ate or­gan­isa­tion­al struc­ture, fin­an­cial guar­an­tees and the spe­cial­ist qual­i­fic­a­tions re­quired giv­en the nature and com­plex­ity of the as­sets en­trus­ted to it;

b.

is sub­ject to reg­u­lar ex­tern­al audits, thereby en­sur­ing that it pos­sesses the fin­an­cial in­stru­ments;

c.

the as­sets re­ceived from the cus­todi­an bank are kept in safe cus­tody in such a man­ner that by means of reg­u­lar port­fo­lio com­par­is­ons they can at all times be clearly iden­ti­fied as be­long­ing to the fund’s as­sets;

d.

com­plies with the pro­vi­sions ap­plic­able to the cus­todi­an bank with re­spect to the per­form­ance of the tasks del­eg­ated to it and the avoid­ance of con­flicts of in­terest.

(Art. 78 para. 1 and 2 CISA)

¹The pay­ing agent shall be a bank un­der the Fed­er­al Act on Banks and Sav­ings Banks of 8 Novem­ber 1934¹.²

²Where the fund reg­u­la­tions provide for the de­liv­ery of unit cer­ti­fic­ates, the cus­todi­an bank, at the in­vestor’s re­quest, cer­ti­fies his or her rights in se­cur­it­ies (Art. 965 CO³) without par value, in re­gistered form and struc­tured as or­der in­stru­ments (Art. 967 and 1145 CO).⁴

³Unit cer­ti­fic­ates may only be is­sued after pay­ment of the is­sue price.

⁴The is­su­ing of frac­tions of units shall only be per­mit­ted in the case of in­vest­ment funds.

(Art. 79 CISA)

¹The reg­u­la­tions of a col­lect­ive in­vest­ment scheme whose value is dif­fi­cult to as­cer­tain, or which has lim­ited mar­ket­ab­il­ity, may provide for no­tice to be served only on spe­cif­ic dates, sub­ject to a min­im­um of four times per year.

²FINMA may in the event of a jus­ti­fied re­quest re­strict the right to re­deem at any time de­pend­ing on the in­vest­ments and in­vest­ment policy. This shall ap­ply spe­cific­ally in the case of:

a.

in­vest­ments which are not lis­ted and not traded on an­oth­er reg­u­lated mar­ket open to the pub­lic;

b.

mort­gages;

c.

private equity in­vest­ments.

³Where the right to re­deem at any time is re­stric­ted, such fact must be stated ex­pli­citly in the fund reg­u­la­tions, in the pro­spect­us and in the key in­form­a­tion doc­u­ment.¹

⁴The right to re­deem at any time may be sus­pen­ded for a max­im­um of five years.

⁵The fund man­age­ment com­pany and the SICAV may per­mit a pro rata cut­ting off of re­demp­tion ap­plic­a­tions on reach­ing a spe­cif­ic per­cent­age or threshold on a spe­cif­ic trad­ing day in ex­cep­tion­al cir­cum­stances if this is in the in­terests of the re­main­ing in­vestors (gat­ing). The re­main­ing por­tion of re­demp­tion ap­plic­a­tions shall be con­sidered sub­mit­ted for the sub­sequent valu­ation day. De­tails must be dis­closed in the fund reg­u­la­tions. FINMA ap­proves the in­clu­sion of gat­ing in the fund reg­u­la­tions.²

⁶The audit com­pany and FINMA must be in­formed im­me­di­ately of any de­cision on de­fer­ral or gat­ing as well as any lift­ing of such. In­vestors must also be no­ti­fied in a suit­able man­ner.³

(Art. 81 CISA)

¹The fund reg­u­la­tions may provide for re­pay­ment to be de­ferred tem­por­ar­ily in the fol­low­ing ex­cep­tion­al cases:

a.

where a mar­ket which serves as the basis for the valu­ation of a sig­ni­fic­ant pro­por­tion of the fund's as­sets is closed, or if trad­ing on such mar­ket is re­stric­ted or sus­pen­ded;

b.

in the event of polit­ic­al, eco­nom­ic, mil­it­ary, mon­et­ary or oth­er emer­gen­cies;

c.

if, ow­ing to ex­change con­trols or re­stric­tions on oth­er as­set trans­fers, the col­lect­ive in­vest­ment scheme can no longer trans­act its busi­ness;

d.

in the event of large-scale with­draw­als of units which may sig­ni­fic­antly en­danger the in­terests of the oth­er in­vestors.

²The audit com­pany and FINMA must be in­formed im­me­di­ately of any de­cision to de­fer re­demp­tions. The de­cision must also be com­mu­nic­ated to the in­vestors in a suit­able man­ner.

(Art. 82 CISA)

¹En­forced re­demp­tion pur­su­ant to Art­icle 82 of the Act is per­mit­ted only in ex­cep­tion­al cir­cum­stances.

²The reas­ons for en­forced re­demp­tion must be set out in the fund reg­u­la­tions.

(Art. 92–94 CISA)

¹The fund man­age­ment com­pany and the SICAV shall pre­pare a single set of fund reg­u­la­tions for a col­lect­ive in­vest­ment scheme. Such reg­u­la­tions shall in­clude the des­ig­na­tion of the scheme and the ad­di­tion­al des­ig­na­tions of the in­di­vidu­al sub- funds.

²Where the fund man­age­ment com­pany or the SICAV has the right to cre­ate ad­di­tion­al sub­funds, or dis­solve or merge ex­ist­ing sub­funds, spe­cif­ic ref­er­ence must be made thereto in the fund reg­u­la­tions.

³The fund man­age­ment com­pany and the SICAV shall also set out in the fund reg­u­la­tions that:

a.

fees may be deb­ited only to that sub­fund for which a spe­cif­ic ser­vice is rendered;

b.

costs which can­not be clearly as­signed to a par­tic­u­lar sub­fund are charged to the in­di­vidu­al sub­funds in pro­por­tion to their as­sets;

c.

in­vestors are only en­titled to the as­sets and in­come of the par­tic­u­lar sub­fund in which they are in­ves­ted or whose shares they hold;

d.

only the sub­fund con­cerned is li­able for the li­ab­il­it­ies of that in­di­vidu­al sub­fund.

⁴The fees charged when in­vestors con­vert from one sub­fund to an­oth­er are cited ex­pli­citly in the fund reg­u­la­tions.

⁵In re­la­tion to the mer­ging of sub­funds, Art­icle 115 ap­plies ac­cord­ingly.

(Art. 92 and 95 para. 1 CISA)

¹In­vest­ment funds or sub­funds may be merged by the fund man­age­ment com­pany if:

a.

pro­vi­sion there­fore is made in the rel­ev­ant fund con­tracts;

b.

they are man­aged by the same fund man­age­ment com­pany;

c.¹

the rel­ev­ant fund con­tracts are gen­er­ally identic­al in their re­quire­ments on the fol­low­ing:

1.

in­vest­ment policy, in­vest­ment tech­niques, risk di­ver­si­fic­a­tion as well as the risks as­so­ci­ated with the in­vest­ment policy,

2.

ap­pro­pri­ation of net in­come and cap­it­al gains from the dis­pos­al of as­sets and rights,

3.

nature, amount and cal­cu­la­tion of all re­mu­ner­a­tion, the is­sue and re­demp­tion fees as well as the in­cid­ent­al costs for the pur­chase and sale of in­vest­ments, such as broker­age fees, oth­er fees, levies, which may be charged to the fund as­sets or to in­vestors,

4.

term of the con­tract and the con­di­tions for ter­min­a­tion;

d.

the as­sets of the funds con­cerned are val­ued, the ex­change ra­tio is cal­cu­lated, and the as­sets and li­ab­il­it­ies are ac­quired on the same day;

e.

no costs arise as a res­ult for either the in­vest­ment fund or sub­funds, or the in­vestors.

²...²

³FINMA may make the mer­ging of in­vest­ment funds and the trans­fer of as­sets of a SICAV de­pend­ent on ad­di­tion­al con­di­tions, es­pe­cially in the case of real es­tate funds.

(Art. 95 para. 1 let. a and b CISA)

¹In the case of the mer­ging of two in­vest­ment funds, the in­vestors of the fund be­ing trans­ferred re­ceive an equi­val­ent num­ber of units in the ac­quir­ing fund. The fund be­ing trans­ferred is ter­min­ated without li­quid­a­tion.

²The fund con­tract gov­erns the mer­ging pro­ced­ure. In par­tic­u­lar, it con­tains pro­vi­sions re­gard­ing:

a.

the in­form­a­tion to be giv­en to the in­vestors;

b.

the audit com­pany's duty to in­spect the ac­counts at the time of the mer­ger.

³FINMA may grant lim­ited de­fer­ment of re­pay­ment if the mer­ger is likely to take more than one day.

⁴The fund man­age­ment com­pany shall no­ti­fy FINMA that the mer­ger has been com­pleted.

⁵...¹

In the case of the trans­fer of as­sets of a SICAV, as well as the di­vi­sion and the con­ver­sion of an open-ended col­lect­ive in­vest­ment scheme, Art­icles 114 and 115 ap­ply ac­cord­ingly.

(Art. 96 and 97 CISA)

¹The col­lect­ive in­vest­ment scheme shall be dis­solved and may be li­quid­ated im­me­di­ately provided:

a.

the fund man­age­ment com­pany or the cus­todi­an bank has served no­tice;

b.

the share­hold­ers of a SICAV have re­solved the dis­sol­u­tion.

²Where FINMA or­ders the dis­sol­u­tion of the col­lect­ive in­vest­ment scheme, such scheme shall be li­quid­ated im­me­di­ately.

³Pri­or to the fi­nal pay­ment, the fund man­age­ment com­pany or the SICAV shall ob­tain au­thor­isa­tion from FINMA.

⁴The trad­ing of units on the ex­change ceases at the time of dis­sol­u­tion.

⁵The ter­min­a­tion of the cus­todi­an bank agree­ment between the SICAV and the cus­todi­an bank shall be no­ti­fied to FINMA and the audit com­pany im­me­di­ately.

(Art. 98 para. 1 CISA)

¹The lim­ited part­ner­ship for col­lect­ive in­vest­ment may only man­age its own in­vest­ments. It is spe­cific­ally pro­hib­ited from ren­der­ing ser­vices pur­su­ant to Art­icle 26 and 34 Fin­IA² t on be­half of third parties or tak­ing up en­tre­pren­eur­i­al activ­it­ies for the pur­suit of com­mer­cial pur­poses.³

²It in­vests in risk cap­it­al of com­pan­ies and pro­jects and can de­term­ine their stra­tegic dir­ec­tion. It can also in­vest in in­stru­ments pur­su­ant to Art­icle 121.

³To achieve this ob­ject, it may:

a.

take con­trol of vot­ing rights in com­pan­ies;

b.

sit on the body re­spons­ible for the gov­ernance, su­per­vi­sion and con­trol of its par­ti­cip­a­tions, in or­der to safe­guard the in­terests of the lim­ited part­ners.

(Art. 98 para. 2 CISA)

¹...¹

²Where the com­pany has a gen­er­al part­ner, the gen­er­al part­ner must have a min­im­um paid-up share cap­it­al of 100,000 Swiss francs. Where it has sev­er­al gen­er­al part­ners, they must to­geth­er have a min­im­um paid-up share cap­it­al of 100,000 Swiss francs.

³In re­la­tion to the gen­er­al part­ners, the au­thor­isa­tion and re­port­ing du­ties defined in Art­icles 14 para­graph 1 and 15 para­graph 1 ap­ply ac­cord­ingly.

(Art. 9 para. 3 and 102 CISA)¹

¹The gen­er­al part­ners may del­eg­ate in­vest­ment de­cisions and oth­er activ­it­ies, provided this is in the in­terests of ef­fi­cient man­age­ment.

²They shall ex­clus­ively com­mis­sion per­sons who are prop­erly qual­i­fied to ex­ecute such activ­it­ies, and shall en­sure the in­struc­tion, mon­it­or­ing and con­trol ne­ces­sary with re­spect to im­ple­ment­a­tion of the tasks as­signed.

³The per­sons hold­ing ex­ec­ut­ive powers with the gen­er­al part­ners may par­ti­cip­ate in the com­pany as lim­ited part­ners if:

a.

this is provided for in the com­pany agree­ment;

b.

the par­ti­cip­at­ing in­terest stems from their private as­sets; and

c.

the par­ti­cip­at­ing in­terest is sub­scribed at the time of launch.

^3bis...²

⁴The com­pany agree­ment reg­u­lates the de­tails and must be pub­lished in an of­fi­cial lan­guage. FINMA may au­thor­ise a dif­fer­ent lan­guage in in­di­vidu­al cases.³

(Art. 103 para. 1 CISA)

¹Risk cap­it­al is gen­er­ally used for the dir­ect or in­dir­ect fin­an­cing of com­pan­ies and pro­jects in the ba­sic ex­pect­a­tion of gen­er­at­ing above-av­er­age ad­ded value, coupled with the above-av­er­age prob­ab­il­ity of mak­ing a loss.

²Fin­an­cing may take the fol­low­ing spe­cif­ic forms:

a.

equity cap­it­al;

b.

bor­rowed cap­it­al;

c.

mixed forms of equity and bor­rowed cap­it­al such as mezzan­ine fin­an­cing.

(Art. 103 para. 2 CISA)

¹The fol­low­ing are spe­cific­ally per­mit­ted:

a.¹

con­struc­tion, real es­tate and in­fra­struc­ture pro­jects;

b.

al­tern­at­ive in­vest­ments;

c.²

oth­er in­vest­ments, in par­tic­u­lar in­vest­ments in real es­tate or in­fra­struc­ture;

d.³

mixed forms of all pos­sible in­vest­ments in ac­cord­ance with Art­icle 120 and Art­icle 121.

²The com­pany agree­ment reg­u­lates the de­tails.

³Con­struc­tion, real es­tate and in­fra­struc­ture pro­jects are per­mit­ted only if they are by per­sons that are neither dir­ectly nor in­dir­ectly re­lated to:

a.

the gen­er­al part­ner;

b.

the per­sons re­spons­ible for the ad­min­is­tra­tion and the man­age­ment; or

c.

the in­vestors.⁴

⁴The gen­er­al part­ner, the per­sons re­spons­ible for the ad­min­is­tra­tion and the man­age­ment and closely re­lated nat­ur­al and leg­al per­sons, and the in­vestors in a lim­ited part­ner­ship for col­lect­ive in­vest­ment, may ac­quire real es­tate and in­fra­struc­ture as­sets from that part­ner­ship or as­sign any such as­sets to it if:

a.

the mar­ket con­form­ity of the pur­chase and selling price of the real es­tate as­sets and in­fra­struc­ture as­sets as well as the trans­ac­tion costs are con­firmed by an in­de­pend­ent valu­ation ex­pert; and

b.

the share­hold­ers' meet­ing has ap­proved the trans­ac­tion.⁵

(Art. 110 CISA)

¹The in­vest­ment com­pany with fixed cap­it­al may only man­age its own as­sets. Its primary ob­ject is to gen­er­ate in­come and/or cap­it­al gains, whereby it does not pur­sue any en­tre­pren­eur­i­al activ­it­ies in the true sense. It is spe­cific­ally pro­hib­ited from ren­der­ing ser­vices pur­su­ant to Art­icles 26 and 34 Fin­IA¹ on be­half of third parties.²

²It may del­eg­ate in­vest­ment de­cisions as well as spe­cif­ic tasks, provided this is in the in­terests of ef­fi­cient man­age­ment.

(Art 110 para. 2 CISA)

¹Shares amount­ing to at least 500,000 Swiss francs must be fully paid up in cash at the time of form­a­tion.

²The min­im­um in­vest­ment amount must be main­tained at all times.

³The SI­CAF shall no­ti­fy FINMA of any short­fall in the min­im­um in­vest­ment amount im­me­di­ately.

(Art 110 para. 2 CISA)

The gov­ern­ing bod­ies must at all times hold treas­ury shares as a per­cent­age of the total as­sets of the SI­CAF as fol­lows, sub­ject to a max­im­um of 20 mil­lion Swiss francs:

a.

1 per­cent for that por­tion not ex­ceed­ing 50 mil­lion Swiss francs;

b.

¾ per­cent for that por­tion ex­ceed­ing 50 mil­lion but not ex­ceed­ing 100 mil-li­on Swiss francs;

c.

½ per­cent for that por­tion ex­ceed­ing 100 mil­lion but not ex­ceed­ing 150 mil­lion Swiss francs;

d.

¼ per­cent for that por­tion ex­ceed­ing 150 mil­lion but not ex­ceed­ing 250 mil­lion Swiss francs;

e.

⅛for that por­tion ex­ceed­ing 250 mil­lion Swiss francs.

(Art. 110 CISA)

¹The pro­vi­sions con­cern­ing per­mit­ted in­vest­ments for oth­er funds ap­ply ac­cord­ingly.

²FINMA may au­thor­ise oth­er in­vest­ments.

(Art. 112 CISA)

Art­icle 39 ap­plies ac­cord­ingly.

(Art. 113 para. 3 CISA)

Art­icle 111 ap­plies ac­cord­ingly.

(Art. 115 para. 3 CISA)

In the me­dia of pub­lic­a­tion, the SI­CAF shall pub­lish the sig­ni­fic­ant amend­ments to the art­icles of as­so­ci­ation and the fund reg­u­la­tions re­solved by the gen­er­al meet­ing and ap­proved by FINMA, in­dic­at­ing the loc­a­tions where the full word­ing of the amend­ments may be ob­tained free of charge.

(Art. 120 para. 2 let. c and 122 CISA)¹

If the des­ig­na­tion of a for­eign col­lect­ive in­vest­ment scheme provides grounds or might provide grounds for con­fu­sion or de­cep­tion, FINMA may re­quire a sup­ple­ment­ary ex­plan­a­tion.

(Art. 120 par. 1 and 4 CISA)

Ad­vert­ising for for­eign col­lect­ive in­vest­ment schemes trig­gers the du­ties in ac­cord­ance with Art­icle 120 para­graphs 1 and 4 of the Act.

(Art. 120 para. 2 let. d CISA)

¹A fund man­age­ment com­pany of a for­eign col­lect­ive in­vest­ment scheme or a for­eign fund man­age­ment com­pany whose col­lect­ive in­vest­ment scheme is ap­proved to be offered to non-qual­i­fied in­vestors in Switzer­land shall provide evid­ence that it:

a.

has con­cluded a rep­res­ent­at­ive agree­ment in writ­ing or in an­oth­er form demon­strable via text;

b.

has con­cluded a pay­ing agent agree­ment in writ­ing or in an­oth­er form demon­strable via text

²The cus­todi­an bank shall provide evid­ence that it has con­cluded a pay­ing agent agree­ment in writ­ing or in an­oth­er form demon­strable via text.

³In re­la­tion to the of­fer of for­eign col­lect­ive in­vest­ment schemes in Switzer­land, the rep­res­ent­at­ive agree­ment spe­cific­ally reg­u­lates:

a.

the rights and du­ties of the for­eign fund man­age­ment com­pany in ac­cord­ance with para­graph 1 and of the rep­res­ent­at­ive pur­su­ant to Art­icle 124 para­graph 2 of the Act, in par­tic­u­lar with re­gard to its duty to re­port, pub­lish and in­form, as well as the code of con­duct;

b.

the man­ner in which the col­lect­ive in­vest­ment scheme is offered in Switzer­land;

c.

the duty of the fund man­age­ment com­pany in ac­cord­ance with para­graph 1 to re­port to the rep­res­ent­at­ive, spe­cific­ally with re­gard to changes to the pro­spect­us and the or­gan­isa­tion­al struc­ture of the for­eign col­lect­ive in­vest­ment scheme.

⁴FINMA shall pub­lish a list of coun­tries with which it has con­cluded an agree­ment on co­oper­a­tion and the ex­change of in­form­a­tion pur­su­ant to Art­icle 120 para­graph 2 let­ter e of the Act.

(Art. 124 para. 2 CISA)

¹The rep­res­ent­at­ive of a for­eign col­lect­ive in­vest­ment shall have an ap­pro­pri­ate or­gan­isa­tion­al struc­ture for the ful­fil­ment of its du­ties pur­su­ant to Art­icle 124 of the Act.

²FINMA shall reg­u­late the de­tails of the or­gan­isa­tion and du­ties of the rep­res­ent­at­ive of for­eign col­lect­ive in­vest­ment schemes.²

(Art. 120 para. 3 CISA)

FINMA may in in­di­vidu­al cases spe­cify a sim­pli­fied, fast-track ap­prov­al pro­ced­ure for for­eign col­lect­ive in­vest­ment schemes provided such in­vest­ments have already been ap­proved by a for­eign su­per­vis­ory au­thor­ity, such ar­range­ment be­ing re­cip­roc­al.

(Art. 120 par. 4 CISA)

For­eign col­lect­ive in­vest­ment schemes which are offered to qual­i­fied in­vestors in ac­cord­ance with Art­icle 5 para­graph 1 of the Fin­an­cial Ser­vices Act of 15 June 2018² (FinSA) with­in the scope of a per­man­ent in­vest­ment ad­vice re­la­tion­ship with­in the mean­ing of Art­icle 3 let­ter c item 4 FinSA are not re­quired to meet the con­di­tions of Art­icle 120 para­graph 2 let­ter d of the Act.

(Art. 120 par. 5 CISA)

Em­ploy­ee share par­ti­cip­a­tion schemes are em­ploy­ee par­ti­cip­a­tion schemes in ac­cord­ance with Art­icle 5 FinIO².

(Art. 15 and 120 CISA)

The ap­prov­al for for­eign col­lect­ive in­vest­ment schemes pur­su­ant to Art­icles 15 and 120 of the Act lapses if the su­per­vis­ory au­thor­ity in the coun­try of dom­i­cile of the col­lect­ive in­vest­ment scheme with­draws its ap­prov­al.

(Art. 14 para. 1 let. d CISA)

¹The rep­res­ent­at­ive of for­eign col­lect­ive in­vest­ment schemes must pos­sess min­im­um cap­it­al of 100 000 Swiss francs. This must be paid up in full and main­tained at all times.

²FINMA may per­mit part­ner­ships to provide, in­stead of min­im­um cap­it­al, col­lat­er­al in the form of a bank guar­an­tee or a cash de­pos­it in a blocked ac­count with a bank, said col­lat­er­al be­ing equi­val­ent to the min­im­um cap­it­al.

³Where there are le­git­im­ate grounds for so do­ing, FINMA may stip­u­late a dif­fer­ent min­im­um amount.

⁴In all oth­er re­spects, Art­icle 20 ap­plies ac­cord­ingly.

(Art. 120 para. 4 CISA)

The rep­res­ent­at­ive shall en­sure that in­vestors can ob­tain from it the prin­cip­al doc­u­ments of the for­eign col­lect­ive in­vest­ment scheme.

(Art. 14 para. 1 let. d CISA)

The rep­res­ent­at­ive shall con­clude pro­fes­sion­al in­dem­nity in­sur­ance ap­pro­pri­ate to its busi­ness activ­it­ies of at least 1 mil­lion Swiss francs, less the min­im­um cap­it­al or ef­fect­ive col­lat­er­al fur­nished in ac­cord­ance with Art­icle 131.

(Art. 75–77, 83 para. 4 and 124 para. 2 CISA)¹

¹The rep­res­ent­at­ive of a for­eign col­lect­ive in­vest­ment scheme shall pub­lish the doc­u­ments pur­su­ant to Art­icles 13a and 15 para­graph 3, as well as the an­nu­al and semi-an­nu­al re­port, in an of­fi­cial lan­guage or in Eng­lish. FINMA may au­thor­ise pub­lic­a­tion in an­oth­er lan­guage, provided pub­lic­a­tion is dir­ec­ted only to­wards a spe­cif­ic in­vestor eli­gib­il­ity.²

²The fol­low­ing must be in­dic­ated in the pub­lic­a­tions and mar­ket­ing ma­ter­i­al:

a.

the coun­try of dom­i­cile of the col­lect­ive in­vest­ment scheme;

b.

the rep­res­ent­at­ive;

c.

the pay­ing agent;

d.³

the loc­a­tion where the doc­u­ments pur­su­ant to Art­icles 13a and 15 para­graph 3, to­geth­er with the an­nu­al and semi-an­nu­al re­port, may be ob­tained.

^2bisIf in place of the key in­form­a­tion doc­u­ment an equi­val­ent doc­u­ment in ac­cord­ance with An­nex 10 of the Fin­an­cial Ser­vices Or­din­ance of 6 Novem­ber 2019⁴ is used, the in­form­a­tion in ac­cord­ance with para­graph 2 may be con­tained in an an­nex to the key in­form­a­tion doc­u­ment.⁵

³The rep­res­ent­at­ive of a for­eign col­lect­ive in­vest­ment scheme shall sub­mit the an­nu­al and semi-an­nu­al re­ports to FINMA im­me­di­ately, no­ti­fy it of amend­ments to such doc­u­ments pur­su­ant to Art­icle 13a im­me­di­ately and pub­lish such amend­ments in the me­dia of pub­lic­a­tion. Art­icles 39 para­graph 1 and 41 para­graph 1, second sen­tence, ap­ply ac­cord­ingly.⁶

⁴It shall pub­lish the net as­set val­ues of units at reg­u­lar in­ter­vals.

⁵The pub­lic­a­tion and re­port­ing reg­u­la­tions do not ap­ply to for­eign col­lect­ive in- vest­ment schemes that are ex­clus­ively offered to qual­i­fied in­vestors.⁷