Ordinance on Investment Undertakings (Investment Undertakings ...

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2) In the case of a repo (repurchase agreement), a transferable security is sold with the obligation to buy it back at a later time. 3) In the case of a reverse repo, a transferable security is bought with the obligation to resell it at a later time. Article 76 Conclusion of repurchase transactions 1) As part of its ordinary management activities, the management company may conclude repurchase transactions as reverse repos for investment undertakings for transferable securities. 2) The management company may conclude the transaction on behalf of and for the account of the investment undertaking (principal) or it may mandate an intermediary to perform this function as a trustee in direct or indirect representation. 3) The management company or the mandated institution shall guarantee that the repurchase transactions are handled in conformity with the market and according to professional qualifications. 4) Parties may engage in repurchase transactions who are also eligible to engage in securities loans in accordance with article 69. If the depositary bank is not a counterparty itself, its approval is required for the choice of the counterparty. 5) Transferable securities originating from repurchase agreements may neither be loaned, sold, nor used to cover derivative financial instruments. 6) An agreement must be concluded on execution of the repurchase transaction between the management company and every executing institution. 7) The periodic reports must contain information on the repurchase transactions effected. Article 77 Procedure and internal control The management company shall regulate the procedure for concluding a repurchase transaction and its control in a guideline. 46
Article 78 Special obligations of the depositary bank The depositary bank must fulfill the following special obligations: a) it shall monitor that the transaction is handled in conformity with the agreement; b) it shall undertake the daily balancing of the changes in value of the transferable securities in the assets (mark-to-market); and c) it shall undertake the requisite administrative activities and shall assert all applicable rights. Article 79 Special requirements 1) An individual transaction and the agreement may have a notice period of at most ten days. 2) Only repo transactions shall be considered loan transactions for the purposes of article 50. Reverse repo transaction shall be considered liquid assets within the meaning of article 38. III. Licenses for management companies and investment undertakings A. General provisions Article 80 Application materials 1) The application for a license as a management company or investment undertaking must sufficiently document the legal licensing conditions. In particular, the application must include the following information and documents: 47
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 and 34: creditworthiness risk, etc.), an in
Page 35 and 36: term loans for repaying units, up t
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: Article 72 Volume and term 1) If it
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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