Corporate Investor Protection Regarding Financial Markets Infrastructure Act (FinfraG/FMIA)

For Clients Holding a Corporate Account: Your Classification and Obligation

In response to the increasing regulatory pressure and demand for trading in Over-the-Counter (OTC) and Exchange-Traded-Derivatives market, Switzerland enforced the Financial Market Infrastructure Act (FinfraG/FMIA) and its Ordinances in 2015, effective from 1 January 2016. The new legislation is the equivalent to the Dodd-Frank Act in the US and the European Market Infrastructure Regulation (EMIR) in the European Union.

Derivatives under FinfraG/FMIA are generally subject to clearing, reporting, risk mitigation, and platform trading obligations. The exact nature of these FinfraG/FMIA obligations, which may apply to derivative transactions concluded between you and Habib Bank AG Zurich (hereinafter the ‘Bank) depends on your classification under FinfraG/FMIA. FinfraG/FMIA differentiates between the following categories of Counterparties: Large or Small Financial Counterparties or Large and Small Non-Financial Counterparties (refer to Appendix I for definitions). Please note that these obligations will apply to you even if you are domiciled in a non-Swiss jurisdiction.

Based on the Information Available to Us, We Consider You a Small Non-Financial Counterparty

In general, both, OTC and Exchange-Traded Derivatives fall under FinfraG/FMIA. A Small Non-Financial Counterparty must adhere to certain risk mitigation obligations in case certain derivatives under the scope of FinfraG/FMIA are not subject to clearing and trade reporting. The Bank will fulfil these reporting and risk mitigation obligations under FinfraG/FMIA for (but limited to) for your account relationship.

Please Inform Us at Your Earliest if This Classification is Not Correct or if Your Classification Changes in the Future

In such a case, you are requested to fill in the ‘Counterparty Classification Form’ and get it signed by a signatory registered with us. The Form can be downloaded here: Counterparty Classification Form

Please send the Form to Habib Bank AG Zurich, with attention to: Account Opening Department, Weinbergstrasse 59, CH-8006, Zurich.

We recommend that you seek professional advice in case you have any queries related to FinfraG/FMIA and your obligations.

For your reference, the Bank is classified as an FC- under FinfraG/FMIA and our Legal Entity Identifier (LEI) is 2138004YBSJVUUIRA750.

Thank you for your cooperation.

Best regards,

Habib Bank AG Zurich

Appendix I: FinfraG – Notes and Definitions (for Small NFC)
Appendix II: Counterparty Classification Form