Ordinance
on Financial Institutions
(Financial Institutions Ordinance, FinIO)

(Art. 19 Fin­IA)

¹The port­fo­lio man­ager shall en­sure that the as­sets en­trus­ted to it for man­age­ment are held in safe­keep­ing, se­greg­ated per cli­ent, with a bank pur­su­ant to the BankA¹⁴, a se­cur­it­ies firm pur­su­ant to the Fin­IA, a trad­ing fa­cil­ity for dis­trib­uted ledger tech­no­logy se­cur­it­ies (DLT trad­ing fa­cil­ity) in ac­cord­ance with the Fin­MIA¹⁵ or oth­er in­sti­tu­tion that is sub­ject to su­per­vi­sion equi­val­ent to that in Switzer­land.¹⁶

²It shall man­age the as­sets on the basis of au­thor­isa­tion giv­en in writ­ing or in an­oth­er form demon­strable via text. The au­thor­isa­tion must be lim­ited to ad­min­is­trat­ive acts. If the port­fo­lio man­ager is en­trus­ted with the pro­vi­sion of fur­ther ser­vices which re­quire more far-reach­ing au­thor­isa­tions, it shall doc­u­ment the basis of these activ­it­ies.

³Port­fo­lio man­agers shall take meas­ures to avoid a break-off of con­tact with cli­ents and to pre­vent cli­ent re­la­tion­ships from be­com­ing dormant. If a busi­ness re­la­tion­ship be­comes dormant, the port­fo­lio man­ager shall take suit­able steps to en­sure that dormant as­sets are de­livered to be­ne­fi­ciar­ies.

⁴Para­graph 2 ap­plies by ana­logy to trust­ees. Moreover, trust­ees must, with­in the frame­work of the law ap­plic­able to the trust:

a.

act in the best pos­sible in­terests of be­ne­fi­ciar­ies and with the re­quired level of skill, care and di­li­gence;

b.

take ap­pro­pri­ate or­gan­isa­tion­al pre­cau­tions to avoid con­flicts of in­terest or dis­ad­vant­ages for be­ne­fi­ciar­ies as a res­ult of con­flicts of in­terest.

⁵If the ren­der­ing of ad­di­tion­al ser­vices in­creases the risks to which port­fo­lio man­agers and trust­ees are ex­posed, this must be taken in­to ac­count with­in the scope of su­per­vi­sion (Art­icles 61 and 62 Fin­IA).