26 February 2020

FinSA/FinIA: What needs to be done? And when? Practical insights for the transition

1. Overview Hot TopicsDr. Alexander Vogel

2. Transistion Periods for Portfolio ManagersDr. Reto Luthiger

3. Transition Regime and Interface FinSA/FinIA and Funds Regulations Stephanie Comtesse

4. Transition into the new Prospectus and Key Information Document RegimeDr. Wolfgang Müller | Ülkü Cibik

Transition into the new Prospectus and Key Information Document RegimeDr. Wolfgang Müller and Ülkü Cibik

1. Key Aspects2. Transitional Period – Prospectus 3. Transitional Period – Key Information Document4. Transitional Period – Structured Products5. Conclusions – Take Aways

FinSA/ FinIA: What needs to be done? And when? Practical insights for the transition

Meyerlustenberger Lachenal AG, Attorneys at Law www.mll-legal.com │ www.mll-news.com

Key Aspects

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uniform and comprehensive prospectus regulation

review and approval of the prospectus by a review body

authorized by FINMA

primary market - secondary market

obligation to publish a prospectus prior to launching a public offering or listing of securities

inspired by European Prospectus Regulation/

MiFID II

uniform prospectus content across all types of financial instruments

harmonised prospectus liability regime for all types of securities

cross-border offerings

comprehensive set of exemptions from the

obligation to publish a prospectus

key aspects of the new prospectus and

KID Regime

FinSA/ FinIA: What needs to be done? And when? Practical insights for the transition

Meyerlustenberger Lachenal AG, Attorneys at Law www.mll-legal.com │ www.mll-news.com

Transitional Period – Prospectus (1)

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1.1.2020 1.10.2020 (or later)

1.1.2022

public offer or applicationregarding admission to trading ofsecurities

offering prospectus according toart. 652a CO / art. 1156 CO / listing regulations of relevant stock exchange allowed to beused until 1.1.2022 (FINSO 109 II)

mandatory FinSA prospectus(FinSA 95 IV a)

FinSA/ FinIA: What needs to be done? And when? Practical insights for the transition

Meyerlustenberger Lachenal AG, Attorneys at Law www.mll-legal.com │ www.mll-news.com

Transitional Period – Prospectus (2)

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1.1.2020 1.10.2020 (or later)

1.1.2022

public offer or applicationregarding admission to trading ofsecurities

offering prospectus according toart. 652a CO / art. 1156 CO / listing regulations of relevant stock exchange (FINSO 109 II)

option to voluntarily prepare a FinSA prospectus (FINSO 109 II)

FinSA/ FinIA: What needs to be done? And when? Practical insights for the transition

Meyerlustenberger Lachenal AG, Attorneys at Law www.mll-legal.com │ www.mll-news.com

Transitional Period – Prospectus (3)

46

1.1.2020 1.10.2020(or later)

1.1.2022

public offer or applicationregarding admission to trading ofsecurities

mandatory FinSA prospectus(FINSO 109 II)

FinSA/ FinIA: What needs to be done? And when? Practical insights for the transition

Meyerlustenberger Lachenal AG, Attorneys at Law www.mll-legal.com │ www.mll-news.com

Transitional Period – Old or New Prospectus Regime?

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is addressed solely at investors classified as

professional clients

is addressed at investors acquiring securities with a

value of at least CHF 100,000

has a minimum denomination per unit of

CHF 100,000

does not exceed a total value of CHF 8 million

over a 12-month period

is addressed at fewer than 500 investors

exemptions fromprospectusrequirement

(FinSA 36)

Transitional Period –Secondary Offerings

Prospectus

New under FinSA and unlike art. 652a CO:

Obligation to issue a prospectus also covers secondary public offerings (FinSA 35)

secondary offerings based on old regime during transitional period possible

FinSA/ FinIA: What needs to be done? And when? Practical insights for the transition

Meyerlustenberger Lachenal AG, Attorneys at Law www.mll-legal.com │ www.mll-news.com

mandatory key informationdocument for:- structured products- collective investment schemes- other financial instruments(FinSA 95 IV b)

simplified prospectus accordingto CISA 5 and CISA 76 allowedto be used until 1.1.2022 (CISO 144 I and V)

Transitional Period – Key Information Document (1)

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1.1.2020 1.1.2022

offer of financial instruments toretail clients

FinSA/ FinIA: What needs to be done? And when? Practical insights for the transition

Meyerlustenberger Lachenal AG, Attorneys at Law www.mll-legal.com │ www.mll-news.com

structured products: • simplified prospectus according to art. 5 II CISA or KID according to Annex 9

FINSO (FINSO 111 I);• PRIIPs KID in addition to or instead of allowed

mandatory key informationdocument for structured productsand other financial instruments(FINSO 111)

Transitional Period – Key Information Document (2)

50

1.1.2020 1.1.2022

offer of financial instruments to retail clients

FinSA/ FinIA: What needs to be done? And when? Practical insights for the transition

Meyerlustenberger Lachenal AG, Attorneys at Law www.mll-legal.com │ www.mll-news.com

collective investment schemes: • simplified prospectus according to annex 2 or 3 Ordinance on Collective

Investment Schemes (CISO) or KID according to Annex 9 FINSO (FINSO 110)

• PRIIPs KID / UCITS-KIID additionally allowed

mandatory key informationdocument for collectiveinvestment schemes (FINSO 110)

Transitional Period – Key Information Document (3)

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1.1.2020 1.1.2022

offer of financial instruments to retail clients

Transitional Period –Structured Products

Prospectus

FinSO 109 II:

Until licensing of a review body by FINMA for public offers in Switzerland provisions of Swiss Code of Obligations (CO) on issue prospectuses applicable

Deletion of Art. 5 IV Collective Investment Schemes Act (CISA)

No prospectus according to Art. 1156 CO has to be produced for structured products

Transitional Period –Structured Products

Key Information Document

Simplified Prospectus – Swiss KID – PRIIPs KID?

Publication Simplified Prospectus

FinSA/ FinIA: What needs to be done? And when? Practical insights for the transition

www.mll-legal.com | www.mll-news.comMeyerlustenberger Lachenal AG, Attorneys at Law

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Conclusions – Take Aways

transitional period of 2 years

as from 1.1.2022, a FinSAprospectus must be used for all existing and new products (unless exemptions apply)

as from 1.1.2022, a KID must be used for all existing and new structured products, collective investment schemes and other financial instruments

products existing prior to 1.1.2020 can be operated according to the old prospectus regime until 31.12.2021

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FinSA/ FinIA: What needs to be done? And when? Practical insights for the transition

www.mll-legal.com | www.mll-news.comMeyerlustenberger Lachenal AG, Attorneys at Law

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for products launched after 6 months from the establishment of a review body, at the earliest as from 1.10.2020, a FinSA prospectus must be produced

for products launched after the establishment of a review body but prior to the deadline mentioned before, issuers have the choice between the old and the new prospectus regime

issuers of new structured products, collective investment schemes and other financial instruments have the choice to issue a KID as from 1.1.2020 instead of a simplified prospectus according to the old regime

PRIIPs KID / UCITS-KIID can be used in addition or instead of a simplified prospectus according to the old regime

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note: the new prospectus regime is not always more cumbersome than the old

prospectus regime