Ordinance of the Swiss Financial Market Supervisory Authority on the Insolvency of Banks and Securities Dealers

¹Where the re­struc­tur­ing plan provides for in­di­vidu­al bank­ing ser­vices or groups of ser­vices to be con­tin­ued and for cer­tain bank as­sets or con­trac­tu­al re­la­tion­ships to be trans­ferred to an­oth­er leg­al en­tity, in­clud­ing a bridge bank, it must in par­tic­u­lar:

a.

name the leg­al en­tity or en­tit­ies to which such bank­ing ser­vices and as­sets are to be trans­ferred;

b.

de­scribe the as­sets, li­ab­il­it­ies and con­trac­tu­al re­la­tion­ships to be trans­ferred and the com­pens­a­tion to be provided for them;

c.

de­scribe the bank­ing ser­vices that are to be con­tin­ued and trans­ferred;

d.

list the cor­por­ate ac­tions un­der­taken and, where bank­ing ser­vices are to be trans­ferred to a bridge bank, de­scribe how as­sets and li­ab­il­it­ies will be shared between the bank and the bridge bank;

e.

stip­u­late an ob­lig­a­tion on the bank’s part to take any ac­tion ne­ces­sary to en­sure that all of the as­sets and ob­jects to be trans­ferred, in­clud­ing in par­tic­u­lar those loc­ated abroad or sub­ject to for­eign law, can be trans­ferred to the oth­er leg­al en­tity;

f.

ex­plain wheth­er com­pens­a­tion is to be paid, how such com­pens­a­tion is to be cal­cu­lated and wheth­er a max­im­um com­pens­a­tion amount is to be im­posed;

g.

ex­plain wheth­er sys­tems and ap­plic­a­tions will be used jointly by the bank and the oth­er leg­al en­tity and, if bank­ing ser­vices are to be con­tin­ued by a bridge bank, how the lat­ter will be guar­an­teed ac­cess to pay­ment trans­ac­tion and fin­an­cial mar­ket in­fra­struc­ture and how it will be able to use this;

h.

de­scribe how to pre­serve the leg­al and eco­nom­ic con­nec­tions between as­sets, li­ab­il­it­ies and con­trac­tu­al re­la­tion­ships, thereby en­sur­ing that only the fol­low­ing can be trans­ferred:

1.

all claims and li­ab­il­it­ies on the bank’s part vis-à-vis a coun­ter­party or sev­er­al coun­ter­parties that can be off­set, in par­tic­u­lar those that are sub­ject to a net­ting agree­ment,

2.

se­cured claims and li­ab­il­it­ies to­geth­er with their col­lat­er­al, and

3.

struc­tured fin­an­cing ar­range­ments or com­par­able cap­it­al mar­ket agree­ments to which the bank is a party, to­geth­er with all rights and ob­lig­a­tions per­tain­ing to them.

²As soon as the ap­proved re­struc­tur­ing plan is en­force­able, or in the case of a sys­tem­ic­ally im­port­ant bank once the re­struc­tur­ing plan has been ap­proved, all trans­ferred as­sets or con­trac­tu­al re­la­tion­ships, to­geth­er with all rights and ob­lig­a­tions per­tain­ing to them at the time of the ap­prov­al of the re­struc­tur­ing plan, pass to the new leg­al en­tity or en­tit­ies.