Ordinance
on Financial Institutions
(Financial Institutions Ordinance, FinIO)

(Art. 22 para. 1 Fin­IA)

¹The min­im­um cap­it­al re­quire­ments of com­pan­ies lim­ited by shares and of part­ner­ships lim­ited by shares must be met with share and par­ti­cip­a­tion cap­it­al, those of lim­ited li­ab­il­ity com­pan­ies must be met with nom­in­al cap­it­al, and those of co­oper­at­ives must be met with co­oper­at­ive cap­it­al.

²The min­im­um cap­it­al re­quire­ments of part­ner­ships and sole pro­pri­et­or­ships must be met with:

a.

the cap­it­al ac­counts;

b.

the lim­ited part­ner­ship con­tri­bu­tions;

c.

the as­sets of part­ners with un­lim­ited li­ab­il­ity.

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

a.

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

b.

the port­fo­lio man­ager or trust­ee un­der­takes:

1.

neither to net such ac­counts and as­sets with its own claims nor to se­cure them with its own as­sets,

2.

without the pri­or con­sent of the su­per­vis­ory or­gan­isa­tion, not to re­duce any of the cap­it­al com­pon­ents as defined in para­graph 2 let­ters a and c to the ex­tent that the min­im­um cap­it­al re­quire­ment is no longer met.

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 su­per­vis­ory or­gan­isa­tion.

⁵FINMA may per­mit part­ner­ships and sole pro­pri­et­or­ships 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 in ac­cord­ance with Art­icle 22 para­graph 1 Fin­IA.