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

¹In or­der to carry out its con­trol tasks in ac­cord­ance with Art­icle 73 para­graph 3 let­ters a and b CISA, the cus­todi­an bank shall as­sess the risks in con­nec­tion with the nature, scope and com­plex­ity of the strategy of the col­lect­ive in­vest­ment scheme in or­der to de­vel­op con­trol pro­cesses that are ap­pro­pri­ate to the col­lect­ive in­vest­ment scheme and the as­sets in which it in­vests.

²The cus­todi­an bank shall is­sue ap­pro­pri­ate in­tern­al guidelines to this ef­fect set­ting out, as a min­im­um:

a.

how it or­gan­ises its con­trol func­tion, in par­tic­u­lar what roles there are and who is re­spons­ible for what;

b.

the con­trol pro­cesses in ac­cord­ance with which the con­trols, in­clud­ing those car­ried out when trans­fer­ring safe­keep­ing to a third-party cus­todi­an or col­lect­ive se­cur­it­ies de­pos­it­ory with­in the mean­ing of Art­icle 105a CISO¹, are to be car­ried out;

c.

the con­trol plan and the con­trol pro­cesses, in par­tic­u­lar the meth­ods, data basis and fre­quency of con­trols;

d.

the es­cal­a­tion pro­cesses that are triggered when ir­reg­u­lar­it­ies are iden­ti­fied, in par­tic­u­lar the pro­cess steps, dead­lines, con­tacts with the fund man­age­ment com­pany or SICAV and oth­er rel­ev­ant parties, pro­ced­ures for de­fin­ing meas­ures and du­ties of dis­clos­ure;

e.

the cus­todi­an bank’s re­port­ing on its con­trol activ­it­ies to the gov­ern­ing bod­ies, in par­tic­u­lar the fre­quency, form and con­tent there­of as well as any fur­ther ad­dress­ees.

³In re­spect of the fund man­age­ment com­pany, the cus­todi­an bank has the right and duty to in­ter­vene to pre­vent in­vest­ments that are not per­mit­ted. If, in the ex­er­cise of its con­trol func­tion, it be­comes aware of such in­vest­ments, it shall re­store com­pli­ance with the law by, for ex­ample, ar­ran­ging for the in­vest­ments to be re­versed.