Federal Act
on Intermediated Securities
(Federal Intermediated Securities Act, FISA)

¹ The cus­todi­an shall re­cord its own and its ac­count hold­ers' se­cur­it­ies sep­ar­ately.

² If the cus­todi­an holds its own and its ac­count hold­ers' se­cur­it­ies with a sub-cus­todi­an in Switzer­land, it shall hold its own and its ac­count hold­ers' se­cur­it­ies in sep­ar­ate se­cur­it­ies ac­counts. Sub-cus­todi­ans must of­fer cus­todi­ans the pos­sib­il­ity of hold­ing their own and their ac­count hold­ers' se­cur­it­ies in sep­ar­ate se­cur­it­ies ac­counts.

³ If the se­cur­it­ies are held abroad, the Swiss cus­todi­an and the first for­eign sub-cus­todi­an shall agree that the lat­ter will hold its own and the ac­count hold­ers' se­cur­it­ies in sep­ar­ate ac­counts.

⁴ If an agree­ment in ac­cord­ance with para­graph 3 is not pos­sible un­der the law of the coun­try con­cerned or for op­er­a­tion­al reas­ons, the Swiss cus­todi­an shall take oth­er meas­ures that provide the ac­count hold­er with a com­par­able level of pro­tec­tion.

⁵ The Swiss cus­todi­an does not have to take meas­ures in ac­cord­ance with para­graph 4 if:

a.

ow­ing to the char­ac­ter­ist­ics of the rel­ev­ant in­ter­me­di­ated se­cur­it­ies or the fin­an­cial ser­vices re­lat­ing to them, cus­tody can take place only in the coun­try con­cerned; or

b.

the ac­count hold­er has in­struc­ted the cus­todi­an, in writ­ing or in an­oth­er form demon­strable by text, to hold the in­ter­me­di­ated se­cur­it­ies with a sub-cus­todi­an in that coun­try.

⁶ The Swiss cus­todi­an that is hold­ing its ac­count hold­ers' se­cur­it­ies with a sub-cus­todi­an shall provide the ac­count hold­ers be­fore­hand with in­form­a­tion in hard copy or elec­tron­ic­ally and in a stand­ard­ised man­ner. It shall state:

a.

that the se­cur­it­ies will be held with a sub-cus­todi­an as a gen­er­al rule;

b.

that, de­pend­ing on the is­suer, a sub-cus­todi­an may have its re­gistered of­fice abroad and that in this case the cus­tody is sub­ject to for­eign law;

c.

that cus­tody abroad car­ries risks for ac­count hold­ers, and what gen­er­al risks are in­volved;

d.

the costs of the cus­tody of in­ter­me­di­ated se­cur­it­ies.