Ordinance on Investment Undertakings (Investment Undertakings ...

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3) When calculating the risk, the market value of the underlying instruments, the default risk, future market fluctuations, and the settlement dates of the positions shall be taken into account. 4) The management company shall outline its risk management and the responsibilities and procedures relating to risky transactions in writing. 5) The management company must in particular valuate and measure overall positions or delegate in accordance with article 34. In addition, it must precisely and independently record, delineate, and continuously monitor the types of derivative financial instruments, risks associated with underlying instruments, investment limits, and methods used. 6) With respect to transactions associated with risks, the management company shall compile all documents necessary for decision-making and monitoring. These documents must also allow the external audit office to form a reliable judgment on the conduct of business and the financial situation of the investment undertaking. 7) Each year, the external audit office shall provide an assessment in its report on the appropriateness and effectiveness of the rules adopted in relation to risk management pursuant to paragraphs 1 to 4 and by the management company. 8) In connection with the required business report, the FMA shall be notified with respect to compliance with paragraphs 1 to 4. 9) The FMA shall determine the base models to be used for risk management, the calculation methods, and the content and scope of notification by the external audit office to the FMA. 10) The FMA shall submit to the EFTA Surveillance Authority the methods for calculating the risks, including the default risk in the case of OTC derivatives, and all amendments to the related legal provisions. Article 50 Taking out and granting loans 1) Investment undertakings for transferable securities may neither take out nor grant loans nor serve as a guarantor for third parties. 2) In exceptional cases and if necessary in the interest of the investors, investment undertakings for transferable securities may take out fixed- 34
term loans for repaying units, up to an amount not more than 10% of their net assets. 3) The property and rights associated with the assets may not be pledged as collateral, except for taking out permissible loans according to paragraph 2 and for transactions with derivative financial instruments according to article 48. 4) Paragraph 1 shall not preclude the acquisition by the investment undertaking of transferable securities, money market instruments, or other financial instruments that are not fully paid up. 2. Investment undertakings for other values a) General provisions Article 51 Investments 1) Investment undertakings for other values may, in particular, invest their assets in: a) transferable securities and book-entry securities, units of other investment undertakings, money market instruments, and bank balances, without having to observe the restrictions applicable to investment undertakings for transferable securities; b) derivative financial instruments; or c) precious metals. 2) Investment undertakings for other values may continuously hold unrestricted liquid assets. 3) Investments not traded on a regulated market or for which no quote is available must be valued at the price that would probably be attained in a sale at the time of the valuation. Article 52 Fixed-term investment undertakings If a fixed term is provided for the investment undertaking for other values, there shall be no obligation to issue and/or redeem units. This re- 35
Page 1 and 2: Ordinance of 23 Au
Page 3 and 4: tractually governed forward transac
Page 5 and 6: Article 8 Name 1) The name of an in
Page 7 and 8: a) the full prospectuses so provide
Page 9 and 10: 5. Business report, half-yearly rep
Page 11 and 12: Article 20 Business report and half
Page 13 and 14: Article 23 Quarterly reporting 1) T
Page 15 and 16: thorize additional cancellation dea
Page 17 and 18: 5) Amendments to the prospectus for
Page 19 and 20: 1. accounting services required by
Page 21 and 22: pecially in the event of insolvency
Page 23 and 24: D. Investment rules 1. Investment u
Page 25 and 26: ments), if they are permissible as
Page 27 and 28: nized international accounting prov
Page 29 and 30: article 39 and article 43, paragrap
Page 31 and 32: ) Special limitations Article 45 In
Page 33: creditworthiness risk, etc.), an in
Page 37 and 38: Article 55 Special requirements 1)
Page 39 and 40: Article 58 Securing liabilities 1)
Page 41 and 42: considered unsegmented. All documen
Page 43 and 44: Article 68 Forms With respect to se
Page 45 and 46: Article 72 Volume and term 1) If it
Page 47 and 48: Article 78 Special obligations of t
Page 49 and 50: m) a confirmation by the Office of
Page 51 and 52: 4) The organization, in particular
Page 53 and 54: Article 87 b) Equity position If th
Page 55 and 56: V. Supervision of management compan
Page 57 and 58: Article 95 Foreign audit offices A
Page 59 and 60: a) the accounts are being kept prop
Page 61 and 62: a) the accuracy of the business and
Page 63 and 64: ) the information concerning issue,
Page 65 and 66: Minimum content of the full prospec
Page 67 and 68: *2.1 designation or company name, d
Page 69 and 70: 4.2 main activity. 5 Information on
Page 71 and 72: 2.5 profile of the typical investor
Page 73 and 74: niques and instruments, especially
Page 75 and 76: 2. Off-balance-sheet operations The
Page 77 and 78: 6. Number of units in circulation 6
Page 79 and 80: 1.4.2 buildings on which constructi
Page 81 and 82: 5. Change of net assets For each in
Page 83: account. 83

Ordinance on Investment Undertakings (Investment Undertakings ...

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