Federal Intermediated Securities Act (FISA)

Art. 33

1 A custodian shall be liable for the loss caused to an account holder in relation to the custody or transfer of intermediated securities, pursuant to the provisions of the Code of Obligations, unless otherwise provided in this Article. 2 A custodian which is authorised to hold intermediated securities with a sub-custodian shall be liable for any failure to exercise due care in the selection and instruction of the sub-custodian and in verifying its continued compliance with the selection criteria. 3 A custodian may waive its liability under paragraph 2 if the account holder has expressly designated the sub-custodian contrary to the custodian's advice. 4 A custodian shall be liable, as if they were its own, for the acts of a sub-custodian which: a. independently and over a long period of time administers and settles all securities transactions on behalf of the custodian; or b. is part of the same economic entity as the custodian. 5 Agreements to the contrary shall be valid only as betwe