Financial Services Act (FinSA)

Art. 19FinSA from 2020

Art. 19 Use of clients' financial instruments

¹ Financial service providers may borrow financial instruments from clients' portfolios as a counterparty or act as an agent for such transactions only if the clients have given their prior and express consent to these transactions in writing or in another form demonstrable via text in an agreement that is separate from the general terms and conditions.

² The clients' consent is valid only if:

a.

they have been clearly informed of the risks associated with such transactions;

b.

they are entitled to equalisation payments for the proceeds due from the financial instruments borrowed; and

c.

they are compensated for the financial instruments borrowed.

³ Short selling with the financial instruments of retail clients is not permitted.