Ordinance of the Swiss Financial Market Supervisory Authority on Collective Investment Schemes

¹The mas­ter fund shall provide the feed­er fund with all the doc­u­ments and in­form­a­tion it needs to ful­fil its du­ties. To this end, they shall con­clude an agree­ment on co­oper­a­tion and du­ties of dis­clos­ure.

²The agree­ment on co­oper­a­tion and du­ties of dis­clos­ure shall, as a min­im­um, gov­ern the fol­low­ing points:

a.

the prin­ciples re­gard­ing the trans­fer of the rel­ev­ant doc­u­ments and fur­ther in­form­a­tion by the mas­ter fund to the feed­er fund;

b.

the mas­ter fund’s duty of dis­clos­ure to the feed­er fund re­gard­ing the del­eg­a­tion of tasks to third parties;

c.

the vi­ol­a­tions of stat­utory and con­trac­tu­al pro­vi­sions which the mas­ter fund is re­quired to re­port to the feed­er fund and the form and tim­ing of such re­ports;

d.

the duty of the mas­ter fund to in­form the feed­er fund of the over­all ex­pos­ure arising from de­riv­at­ive fin­an­cial in­stru­ments;

e.

the mas­ter fund’s duty of dis­clos­ure to the feed­er fund if it con­cludes ad­di­tion­al agree­ments re­gard­ing the ex­change of in­form­a­tion with third parties;

f.

the ways in which the feed­er fund may in­vest in the mas­ter fund as well as de­tails of the costs and ex­penses to be borne by the feed­er fund;

g.

the prin­ciples and ar­range­ments for im­ple­ment­ing the meas­ures set out in para­graph 4;

h.

the ar­range­ments for re­port­ing the de­fer­ral of is­sues and re­demp­tions and for re­port­ing er­rors in the set­ting of prices by the mas­ter fund;

i.

the prin­ciples for re­con­cil­ing the audit re­ports of the mas­ter fund and feed­er fund.

³If the mas­ter fund and feed­er fund are man­aged by the same fund man­age­ment com­pany or SICAV, the agree­ment on co­oper­a­tion and du­ties of dis­clos­ure may be re­placed by in­tern­al reg­u­la­tions. These must con­tain meas­ures to pre­vent con­flicts of in­terest. In all oth­er re­spects, the in­tern­al reg­u­la­tions must meet the re­quire­ments set out in para­graph 2 let­ters f–i.

⁴The mas­ter fund and feed­er fund shall take meas­ures to co­ordin­ate the sched­ules for cal­cu­lat­ing and pub­lish­ing the net as­set value in or­der to pre­vent mar­ket tim­ing and pos­sib­il­it­ies for ar­bit­rage.