Ordinance
on Financial Institutions
(Financial Institutions Ordinance, FinIO)

(Art. 29 Fin­IA)

¹Leg­al en­tit­ies may count the fol­low­ing as qual­i­fy­ing cap­it­al:

a.

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

b.

the gen­er­al stat­utory and oth­er re­serves;

c.

re­tained earn­ings;

d.

the net profit for the cur­rent fin­an­cial year after de­duc­tion of the es­tim­ated share in the profit dis­tri­bu­tion, provided an audit re­view or an audit pur­su­ant to the CO¹⁸ of the in­ter­im or an­nu­al ac­counts con­firms the as­sur­ances stip­u­lated;

e.

hid­den re­serves, provided they are as­signed to a sep­ar­ate ac­count and des­ig­nated as own cap­it­al and their qual­i­fi­ab­il­ity as such is con­firmed on the basis of the audit in ac­cord­ance with Art­icle 63 Fin­IA.

²Part­ner­ships may count the fol­low­ing as qual­i­fy­ing cap­it­al:

a.

the cap­it­al ac­counts and as­sets of part­ners with un­lim­ited li­ab­il­ity if the con­di­tions un­der Art­icle 42 para­graph 4 are sat­is­fied;

b.

the lim­ited part­ner­ship con­tri­bu­tion.

³Man­agers of col­lect­ive as­sets may also count as qual­i­fy­ing cap­it­al any loans gran­ted to them, in­clud­ing bonds with a ma­tur­ity of at least five years, if a de­clar­a­tion is provided to the ef­fect that:

a.

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

b.

they have un­der­taken neither to net such loans with their own claims nor to se­cure them with their own as­sets.

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 the audit firm.

⁵Own cap­it­al in ac­cord­ance with para­graphs 1 and 2 must amount to at least 50% of total cap­it­al re­quired.