Ordinance
on Financial Institutions
(Financial Institutions Ordinance, FinIO)

(Art. 46 Fin­IA)

¹ Se­cur­it­ies firms may in­clude the fol­low­ing as cap­it­al in ac­cord­ance with Art­icle 70 para­graphs 1 to 3:

a.

paid-up share cap­it­al plus, in the case of part­ner­ships, al­tern­at­ive cap­it­al in­stru­ments;

b.

dis­closed re­serves;

c.

re­tained earn­ings;

d.

the quarterly profits after de­duc­tion of the es­tim­ated profit dis­tri­bu­tion amount;

e.

sub­or­din­ated bonds that are only re­pay­able with the con­sent of FINMA.

² The cap­it­al un­der para­graph 1 let­ters a to c can be in­cluded in full.

³ 70% of the quarterly profits may be in­cluded after de­duct­ing the es­tim­ated profit dis­tri­bu­tion, sub­ject to the ex­ist­ence of a com­plete in­come state­ment in ac­cord­ance with FINMA's im­ple­ment­ing pro­vi­sions based on Art­icle 42 of the Bank­ing Or­din­ance of 30 April 2014³¹ or of a com­plete in­come state­ment in ac­cord­ance with an in­ter­na­tion­al stand­ard re­cog­nised by FINMA, even if the in­come state­ment has not been audited. Where jus­ti­fied, FINMA can re­quire an at­test­a­tion.

⁴The fol­low­ing must be de­duc­ted in full from the eli­gible cap­it­al un­der para­graph 1 let­ters a to d:

a.

the loss car­ried for­ward and the loss for the cur­rent fin­an­cial year;

b.

the value of any par­ti­cip­a­tions in the con­text of the in­di­vidu­al en­tity cal­cu­la­tion;

c.

good­will, in­clud­ing any good­will in­cluded in the valu­ation of sig­ni­fic­ant in­terests in fin­an­cial sec­tor en­tit­ies out­side the scope of con­sol­id­a­tion, and in­tan­gible as­sets;

d.

de­ferred tax as­sets (DTAs) that de­pend on fu­ture prof­it­ab­il­ity, whereby off­set­ting against cor­res­pond­ing de­ferred tax li­ab­il­it­ies with­in the same geo­graph­ic­al and ma­ter­i­al tax jur­is­dic­tion is per­mit­ted.

⁵ If the cap­it­al un­der para­graph 1 let­ters a to d ex­ceeds CHF 1.5 mil­lion after the de­duc­tions un­der para­graph 4, 40% of the sub­or­din­ated bonds may be in­cluded for the ex­cess amount.