FinSA —

Information on the Swiss Financial Services Act (FinSA)

As part of the new Swiss financial market structure, the Financial Services Act (FinSA – Bundesgesetz über die Finanzdienstleistungen, FIDLEG) will enter into force on 1 January 2020. In addition to ensuring a level competitive playing field, the FinSA serves to improve investor protection. 

The FinSA is the Swiss counterpart to the EU Directive on Markets in Financial Instruments (MiFID), which was implemented at VP Bank Ltd in 2018.

VP Bank (Switzerland) Ltd made use of some of the transitional periods and will comply with the requirements of FinSA as of 1 January 2022 by implementing, with some exceptions, the more stringent European directive on Markets in Financial Instruments (MiFID II).

We recommend that you also carefully read the full MiFIDbrochure. This is available from our download area under Brochures and Forms. You will also find the “Risks Involved in Trading Financial Instruments” brochure in the same area. Should you wish, you can order a printed copy of these documents directly from the website or from your client advisor.

According to MiFID II, the Bank is obliged to assign its clients to the categories “Retail investor (non-professional client)”, “Professional client” or “Eligible counterparty” according to defined criteria. The purpose of this classification is to ensure that clients receive a level of protection that is appropriate to their personal circumstances. If you meet the necessary requirements, you can submit a written request to change your classification.

As a professional client or as a non-professional client with a long-term investment advisory or asset management relationship, you are automatically classified as a “qualified investor” under CISA and are given access to investment instruments or unit classes of investment instruments that are only available to qualified investors. Such instruments may not need to be approved by FINMA and less stringent supervisory regulations apply, e.g. limited disclosure and approval requirements. This may result in increased risk as, for example, some of these instruments may be more volatile, based on a less diversified portfolio or involve greater counterparty risk than instruments which are distributed to non-qualified investors.

According to CISA, you can declare in writing that you do not wish to be classified as a qualified investor. Non-qualified investors may face restrictions in the range of products and services offered by the Bank.

The Bank shall provide investment advisory or asset management services upon request. The Bank carries out purchases and sales that are issued without advice and are based on non-complex financial instruments as execution-only transactions. The Bank carries out purchases and sales that are neither execution only nor issued under investment advice or asset management as non-advisory transactions.

MiFID II defines the obligation to perform an appropriateness and/or suitability test when providing investment advice and asset management services and in the case of non-advisory transactions

According to FinSA, non-professional clients must in principle be provided with a KID or an equivalent document under foreign law (e.g. PRIIP-KID) before purchasing a financial instrument.

The Bank adheres to the principles of good faith and equal treatment when processing client orders. In addition, the Bank ensures when executing client orders that the best possible result is achieved in terms of:

• Financial aspects (price, costs, third-party compensation)
• Time of execution
• Quality of execution

Financial services provided by VP Bank (Switzerland) Ltd. and third parties incur costs and fees. Please consult the current Commissions and fees brochures for further information. If you wish to receive an overview of your personal costs and fees, your relationship manager is happy to assist you.

Conflicts of interests may occur when banking services are provided. They can arise between the Bank and its clients, between clients, or between the Bank, its governing bodies, employees and clients. The Bank has taken various internal measures to ensure that it can provide services for clients in a manner that is in their best interests, and that conflicts of interest can be avoided wherever possible.

As a Swiss financial service provider, VP Bank (Switzerland) Ltd is obliged to be associated with an ombudsman. In the event of a dispute pertaining to legal claims between the client and the Bank, the client is entitled to submit a mediation request to the ombudsman.

The ombudsman offers an unbureaucratic, fair, fast and impartial process. Submission of an application for mediation to the ombudsman does not exclude and does not prevent civil action.

VP Bank (Switzerland) Ltd is affiliated with the ombudsman listed below

Schweizerischer Bankenombudsman
Bahnhofplatz 9
Postfach
8021 Zürich
+41 43 266 14 14
www.bankingombudsman.ch