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

For Clients Holding an Individual Account: Your Classification and Obligation

In response to increasing regulatory pressures and demand for Over-the-Counter (OTC) and Exchange-Traded Derivatives trading, Switzerland enacted the Financial Market Infrastructure Act (FinfraG/FMIA) in 2015, effective January 1, 2016. This legislation mirrors the US Dodd-Frank Act and the EU’s EMIR.

Under FinfraG/FMIA, derivatives are generally subject to clearing, reporting, risk mitigation, and platform trading obligations. The application of these obligations to your transactions with Habib Bank AG Zurich depends on your classification under FinfraG/FMIA. FinfraG/FMIA distinguishes between categories such as Large or Small Financial Counterparties and Large or Small Non-Financial Counterparties (see Appendix I for definitions). These obligations apply even if you are domiciled outside Switzerland. However, natural persons are generally not subject to FinfraG/FMIA.

In General, Both OTC and Exchange-Traded Derivatives Fall Under FinfraG/FMIA

The obligations are as follows:

• Risk mitigation for derivatives not subject to clearing
• Clearing obligation for derivatives designated by the Swiss Financial Market Supervisory Authority (FINMA)
• Platform trading obligation for certain derivatives designated by FINMA
• Trade reporting obligation for certain derivatives

Based on the Information Available to Us, We Consider You a Natural Person

As a natural person, you are generally exempt from FinfraG/FMIA obligations. However, the Bank has a legal obligation to report trades in derivatives subject to FinfraG/FMIA to a FINMA-authorized trade repository.

Please Inform Us if This Classification is Incorrect or if Your Classification Changes in the Future

If your classification changes, please complete the ‘Counterparty Classification Form’ and have it signed by a registered signatory. The form can be downloaded here: [Counterparty Classification Form].

Please send the completed form to:
Habib Bank AG Zurich
Account Opening Department
Weinbergstrasse 59, CH-8006, Zurich.

We recommend that you seek professional advice regarding FinfraG/FMIA and your obligations.

Thank you for your cooperation.

Best regards,
Habib Bank AG Zurich

Appendix I: FinfraG – Notes and Definitions (for Natural Persons)
Appendix II: Counterparty Classification Form