Ordinance
on Collective Investment Schemes
(Collective Investment Schemes Ordinance, CISO)

(Art. 15 and 78 para. 3 CISA)

¹ Units or unit classes of an open-ended col­lect­ive in­vest­ment scheme that are per­man­ently lis­ted on a Swiss stock ex­change and for which at least one mar­ket maker in ac­cord­ance with Art­icle 41 let­ter c Fin­IA¹⁹⁵ en­sures that the value of the traded units or unit classes does not de­vi­ate sig­ni­fic­antly from the in­dic­at­ive net as­set value are deemed to be ex­change-traded funds (ET­Fs).

² A col­lect­ive in­vest­ment scheme may only be des­ig­nated as an ‘ex­change-traded fund’ or ‘ETF’ if all units or unit classes are struc­tured as ET­Fs.

³ The pro­spect­us must con­tain the fol­low­ing in­form­a­tion on ET­Fs in par­tic­u­lar:

a.

in­form­a­tion on the list­ing and in­dic­at­ive net as­set value of the ETF and the mar­ket maker;

b.

in­form­a­tion on where and how of­ten the com­pos­i­tion of the ETF's port­fo­lio or its bas­ket of se­cur­it­ies is dis­closed;

c.

a de­scrip­tion of the ETF's trad­ing on the primary and sec­ond­ary mar­kets and the as­so­ci­ated risks;

d.

ref­er­ence to the right of sec­ond­ary mar­ket in­vestors to re­deem their units dir­ectly with the fund man­age­ment com­pany or the SICAV, stat­ing the as­so­ci­ated con­di­tions and cost.

⁴ For ET­Fs that track an in­dex, the pro­spect­us must also con­tain in­form­a­tion on:

a.

the in­dex pro­vider and the in­dex be­ing rep­lic­ated;

b.

the rep­lic­a­tion meth­od and the as­so­ci­ated risks;

c.

the pro­jec­ted rep­lic­a­tion er­ror un­der nor­mal mar­ket con­di­tions.

⁵ If the ETF is act­ively man­aged, this must be stated in the fund con­tract or in the in­vest­ment reg­u­la­tions, in the pro­spect­us, in the key in­form­a­tion doc­u­ment and in the ad­vert­ising. The de­tails of the im­ple­ment­a­tion of the in­vest­ment policy must also be in­cluded in the pro­spect­us.

⁶ If a col­lect­ive in­vest­ment scheme con­tains both ETF and non-ETF unit classes, then:

a.

the suf­fix ‘ETF’ must be used in the des­ig­na­tion of unit classes struc­tured as ET­Fs;

b.

the pro­spect­us must dis­close the de­tails of the struc­tur­ing of unit classes as ET­Fs, in par­tic­u­lar with re­gard to their mode of op­er­a­tion, trad­ing and oth­er dif­fer­ences from the oth­er unit classes, as well as the as­so­ci­ated im­plic­a­tions and risks for in­vestors;

c.

it must be stated on the first page of the fund con­tract or in­vest­ment reg­u­la­tions, the pro­spect­us and the key in­form­a­tion doc­u­ment, as well as in the ad­vert­ising, that the col­lect­ive in­vest­ment scheme con­tains both ETF and non-ETF unit classes.