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FinSA Q&A: Client Orders

FinSA Q&A: Client Orders

UBS Business Solutions AG

Date: June 03, 2022

This product consists of 36 Q&A's on the requirements of the FinSA regarding the handling of client orders.

PV10281
$2,647.92

Author's Note

The product, a know-how collection entitled “ FinSA Q&A: Client Orders ” consists of 36 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 handling of client orders. 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 Client Order 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 handling of client orders. 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...

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The product, a know-how collection entitled “FinSA Q&A: Client Orders” consists of 36 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 handling of client orders.

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 Client Order 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 handling of client orders. 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 Client Orders 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

Who is in scope of best execution under the FinSA?

In scope of best execution are all financial service providers (including portfolio managers) within the meaning of the FinSA who carry out trading activities for or on behalf of their clients, i.e. handle and execute orders of clients regarding the purchase and sale of financial instruments.

How does best execution under the FinSA apply to captive trades?

Neither the FinSA nor MiFID II provide a legal definition of "captive trade" resp. "captive client". Generally, a "captive client" would mean a client who has to execute with a firm due to whatever reason and regardless of whether there is a better price around. It can be said that the client is captive because he/she has no other alternative to the financial service provider at hand. Under MiFID II, the lack of choice of the client (“captive client”) constitutes legitimate reliance under the Four-Fold Test (for further details, please consult Question 2.28) and hence BEX applies. This would be the same under the FinSA, but Swiss law does not provide for specific rules with respect to captive trades. As the FinSA aims to align Swiss law with MiFID II rules, the MiFID II assumptions regarding captive/non-captive professional clients shall be generally valid for BEX under the FinSA too. A "captive client" who is requesting a financial service provider to provide a quote (“RfQ”) and who then enters into a RfQ-based transaction with the financial service provider would have legitimate reliance and therefore BEX duty is owed to such a client.

 

Who needs it

The FinSA Q&A: Client Orders 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 handling of client orders 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: Client Orders gets rid of the need to research Swiss regulatory requirements of the FinSA regarding the handling of client orders. 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.




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