FinSA Q&A: Swiss KID
UBS Business Solutions AG
This product consists of 26 Q&As on the requirements of the FinSA regarding the establishment and provision of a Swiss Key Investor Document.
Author's Note
The product, a know-how collection entitled “ FinSA Q&A: Swiss KID ” consists of 26 questions and answers (" Q&As ") developed by the UBS team of regulatory experts and provides you with the basis for understanding the requirements of the FinSA as regards the establishment and provision of a Swiss KID. Your purchase gives you access to a know-how collection prepared by UBS and may serve as a basis for you to establish your best practices as a financial service provider. The Swiss KID Requirements of the FinSA When applying the FinSA in its interplay with the Swiss Financial Institutions Act (“ FinIA ”) and the revised Swiss Collective Investment Schemes Act (“ revCISA ”), financial service providers also have to understand which requirements apply as regards the establishment and provision of a Swiss KID. The rules in their interplay can be complex and the practice is still developing. A good understanding of this topic may hence be helpful in order to avoid regulatory and...
Read moreThe product, a know-how collection entitled “FinSA Q&A: Swiss KID” consists of 26 questions and answers ("Q&As") developed by the UBS team of regulatory experts and provides you with the basis for understanding the requirements of the FinSA as regards the establishment and provision of a Swiss KID.
Your purchase gives you access to a know-how collection prepared by UBS and may serve as a basis for you to establish your best practices as a financial service provider.
The Swiss KID Requirements of the FinSA
When applying the FinSA in its interplay with the Swiss Financial Institutions Act (“FinIA”) and the revised Swiss Collective Investment Schemes Act (“revCISA”), financial service providers also have to understand which requirements apply as regards the establishment and provision of a Swiss KID. The rules in their interplay can be complex and the practice is still developing. A good understanding of this topic may hence be helpful in order to avoid regulatory and operational risks in this context.
These Q&As are essential practical knowledge for those that provide financial services in Switzerland or to clients in Switzerland.
For a full overview of the questions covered by this product, see Questions answered by UBS' FinSA Q&A under the Swiss KID section.
What you get
After you make your purchase, PartnerVine makes the Q&A available to you for download as a searchable pdf. Below are two Q&As from this product so you can see a sample of what you will get:
Samples of the Q&A
What is a key information document under the FinSA?
A Swiss KID is to be made available or offered only to retail clients. The Swiss KID should enable clients to make informed investment decisions and genuinely compare various financial instruments in a simple and understandable way. All references to "Swiss KID" herein include equivalent foreign documents according to art. 87 FinSO and Annex 10 FinSO.
According to art. 60 FinSA, the Swiss KID shall contain the information essential for investors to make a well-founded investment decision and a comparison of different financial instruments. In particular, the information shall include (art. 60(2) FinSA):
- the name of the financial instrument and the identity of the manufacturer;
- the type and characteristics of the financial instrument;
- the risk/return profile of the financial instrument, specifying the maximum loss the investor could incur on the invested capital;
- the costs of the financial instrument;
- the minimum holding period and the tradability of the financial instrument;
- information on the authorizations and approvals associated with the financial instrument.
The Swiss KID must be easy to understand and is a stand-alone document that must be clearly distinguishable from advertising materials (art. 61 FinSA).
For further details on the content of the Swiss KID, please consult questions 4.1 seqq.
Who is obliged to produce a Swiss KID?
Subject to certain exemptions, art. 58(1) FinSA requires the manufacturer (defined in art. 3(i) FinSA) to produce a Swiss KID when a financial instrument is offered to retail clients. Art. 80(1) FinSO further clarifies that the duty (of the manufacturer) to produce a Swiss KID is triggered as soon as a financial instrument is offered to retail clients in Switzerland. Responsible for the establishment of the Swiss KID is the manufacturer of a financial instrument, because the manufacturer knows the financial instrument the best.
The manufacturer does not have to be the offeror of the financial instrument. Typically, the issuer (or fund manager resp. fund company) is the manufacturer of a financial instrument. The manufacturer could act as the offeror but may also appoint a distributor to market and offer the financial instrument (distribution agreements are common for collective investment schemes and for structured products; please note that the term "distribution" is no longer valid and has – under Swiss law - been replaced by the concept of "offer" and “advertising”).
Hence, the manufacturer and offeror may be two different and unrelated legal entities (and might even act independently and without mutual knowledge) from each other. In such case, an offeror could not cause a manufacturer to produce a Swiss KID, as the actions/omissions of an offeror cannot oblige an unrelated manufacturer to produce a Swiss KID under the FinSA. However, an offeror (but not the manufacturer) is obliged to publish (but not produce) a Swiss KID when making a public offer (art. 66 FinSA).
Who needs it
The FinSA Q&A: Swiss KID is for financial service providers providing their services in Switzerland or to clients in Switzerland. If you are a financial service provider, this product helps you understand the FinSA requirements related to the Swiss KID and implement them.
About UBS
UBS Business Solutions AG ("UBS") is a wholly-owned subsidiary of the UBS Group AG. For more information on UBS, go to www.ubs.com.
Key features
Key features of this product include:
- Structured & easy-to-read. Structured in a reader-friendly, easy-to-access Q&A format that is aligned with the relevant regulations.
- Easy-to-understand. The language is practical and business friendly. The explanations in the text are accompanied by tables and graphics which make it easier to understand and communicate the regulations.
- Interconnected. The Q&As include references to related content in other modules of UBS' FinSA Q&A and third party content to help readers understand the issues.
- Categorization. All of the Q&As are categorized into specific topic groups which you can adapt to your individual needs.
- Upskilling your employees. Underlined terms are explained in the Glossary, which is a complementary product that comprises over 160 terms and definitions. Together with the Glossary, the Q&As provide knowledge management support not just for employees that know an issue well, but employees that need to learn about an issue, increasing expertise across your firm.
- Cost & time savings. You receive extraordinary value when you purchase this product. As your usage increases, your savings increase dramatically (see the Relative Advantage Calculator on the left hand side and the section below on the Relative Advantage Calculator, which will help you understand the value of this product).
Relative Advantage
The FinSA Q&A: Swiss KID gets rid of the need to research Swiss regulatory requirements of the FinSA regarding the establishment and provision of a Swiss KID. The Relative Advantage Calculator on this page shows a conservative use case, and the amount you would save compared to doing the tasks without the benefit of our product. For the calculator, we've taken an hour as the estimate for a lawyer charging CHF 450 per hour to research the answer to one of our Q&As. Our assumptions are conservative ones based on our experience. If you'd like to change our assumptions, you can do so in the calculator and run the number again. The value delivered by our product is meaningful in the vast majority of circumstances, and exceptional as your usage increases.
Circumstances of Use
This product is intended for Swiss financial service providers and financial institutions and provides general information on the FinSA and related laws as of the date of finalization. Our objective is to provide the UBS' perspective of the law in order to help support a better understanding of the new regulatory framework in Switzerland. This product can be used either for implementing the new regulatory framework or as the basis of your own internal knowledge management. This product is not for use outside of Switzerland.
Important Terms
- This product is provided to you only for use in Switzerland.
- You are required to pay for this product by invoice after you have received it. As digital products are so easily replicable, there is no right of rescission for this product and your obligation to pay is unconditional.
- This product is provided to you on a non-reliance basis. There is no guarantee that this product will address your particular facts and circumstances, and you will have no recourse to UBS or PartnerVine if you do not think it does.
- Use of this product does not create an attorney-client relationship with UBS Business Solutions AG or PartnerVine, nor should the product be considered a substitute for qualified legal advice. If you need advice tailored to your facts and circumstances, please consult qualified counsel.
- Your contract for this product is with UBS Business Solutions AG. You will not have recourse to PartnerVine in respect of your use and enjoyment of this product.
Support
This product is a downloadable pdf. There is no additional support for this product.
Demonstration video
This video provides an overview of the "FinSA Q&A" offer from UBS. The video refers to the complete set of Q&As from UBS, and is helpful as an orientation for UBS' offering on PartnerVine.
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