FinIO-FINMA
English is not an official language of the Swiss Confederation. This translation is provided for information purposes only and has no legal force.
Art. 1 Requirements for professional liability insurance
(Art. 31 para. 3 FinIO) 1 Portfolio managers and trustees may count professional liability insurance towards qualifying capital as described in Article 31 paragraph 2 FinIO if the following requirements are met: a. The professional liability insurance must be taken out with an insurance company supervised under the Insurance Supervision Act (ISA) of 17 December 2004. b. The term must be at least one year. c. The notice period must be at least 90 days. d. For claims-made or occurrence-based policies, liability must extend at least 5 years after contract expiration. e. The professional liability insurance must cover at least the professional liability risks associated with the business model (Art. 2). 2 The professional liability risks associated with the business model shall be deemed covered if the professional liability insurance expressly covers the professional liability risks in all business areas defined in the relevant organisational documents in factual and geographical terms. 3
Para. 1 let. a — SR 961.01
Art. 2 Professional liability risks to be covered
(Art. 31 para. 3 FinIO) 1 The professional liability insurance must cover financial losses caused by the negligent – including grossly negligent – performance of actions typical of the profession for which the portfolio manager and the trustee are legally responsible. 2 In particular, the following are deemed to be professional liability risks: a. financial losses caused by investment errors, in particular violations of statutory and contractual obligations or provisions of the portfolio management agreement or towards the trust; b. financial losses arising from breaches of duty by employees or other trusted third parties of the portfolio manager or trustee.
Art. 3 Amount of insurance cover
(Art. 31 para. 3 FinIO) Any excess is to be deducted when counting professional liability insurance towards qualifying capital as described in Article 31 paragraph 2 FinIO.
Art. 4 Duty to notify FINMA of terminations and changes
(Art. 31 para. 3 FinIO) Portfolio managers and trustees must notify FINMA immediately of any termination or changes to their professional liability insurance.