The Swiss Financial Services Act (FinSA) aims to strengthen investor protection and to enhance transparency on financial instruments. In terms of content, FinSA is closely aligned with European regulation.
Below we have summarized the key information required under FinSA.
1. Contact and license information
Name Decisive Capital Management SA
Address Rue du Rhône 78
Place 1204 Genève
IUD no. CHE-147.965.773
Decisive Capital Management SA (“Decisive”) is a SRO-Member of SO-FIT (Organisme de Surveillance pour Intermédiaires Financiers & Trustees) – an officially recognised self-regulatory organisation (SRO) according to the Anti-Money Laundering Act (AMLA) and in the process of obtaining a license for portfolio managers according to art. 5 para. 1 in connection with art. 24 of the Financial Institution Act (FinIA). The license will be granted by the Swiss Financial Market Supervisory Authority FINMA, Laupenstr. 27, CH-3003 Bern. Decisive will be supervised by the supervisory organization SO-FIT (Organisme de Surveillance pour Intermédiaires Financiers & Trustees).
2. Client Segmentation
FinSA differentiates between the following client classifications: “retail clients”, “professional clients” and “institutional clients”. Each classification is assigned a different level of investor protection. While retail clients are afforded the highest level of protection, institutional clients are afforded the lowest level of investor protection.
Decisive provides financial services exclusively to professional clients and institutional clients.
Client classification depends mainly on knowledge & experience and on the financial situation for private clients. Corporate clients are normally classified through their size or regulatory status.
2.1 Institutional Clients
Classification as an institutional client means in particular that:
- The rules of conduct as laid down in chapter 2 of the FInSA do not apply.
- Institutional clients are partially or completely exempted from investor protection according to the Swiss Collective Investment Scheme Act.
2.2 Professional Clients
Classification as professional client means in particular that:
- Information about product risk is provided to professional clients in less detail (in particular no Key Information Document must be provided to professional clients).
- When conducting a suitability and / or appropriateness test, Decisive may assume that the professional client has the relevant knowledge and experience and is financially able to bear the risks associated with the financial instrument / financial service.
- Professional clients are partially or completely exempted from investor protection according to the Swiss Collective Investment Scheme Act.
2.3 Qualified Investor
Based on the portfolio management or advisory contracts Decisive enters with its clients, the latter are deemed to be qualified investors within the meaning of the Swiss Collective Investment Schemes Act (CISA). Decisive may, at its own discretion, invest in or advise on a broader range of financial instruments even if such financial instruments are partially or completely exempted from investor protection provisions under the CISA.
3. Suitability and Appropriateness
As Decisive renders its financial services exclusively to professional and institutional clients, it may assume that those clients possess the required knowledge and experience. Therefore, no appropriateness assessment is carried out.
For professional clients, Decisive may further assume, that those clients are able to bear the financial risks associated with the financial service / financial instrument. Therefore, a suitability assessment limited to the review of the professional client’s investment objectives is carried out in case of portfolio related advice and portfolio management services.
4. Information on financial services
4.1 Order Receipt and Transmission
Decisive will provide for receipt and transmission of client orders, i.e. Decisive will place orders in relation to financial instruments. However, (if not agreed differently in writing) investment decisions in relation to financial instruments are made without advice of Decisive.
Receipt and Transmission of client orders are carried out by Decisive only based on a specific contract and in relation to a specific (custody) account, over which Decisive has received a limited power of attorney for the placement of orders.
4.2 Advisory Services
Decisive renders advisory services to its clients. In case of advisory services, Decisive issues personal recommendations to the client in relation to financial instruments. Such advisory services may relate to the portfolio of the client (“Portfolio Advice”) or to single financial instruments (“Transaction Advice”).
Both, Portfolio Advice and Transaction Advice are carried out by Decisive only based on a specific advisory contract. The decision to buy or sell a specific financial instrument always remains with the client.
4.3 Portfolio Management Services
Decisive renders portfolio management services to its clients. In case of portfolio management services, the client grants Decisive a limited power of attorney to carry out all actions it deems appropriate in the name of the Decisive but for the account and at the risk of the client to implement the investment strategy selected by the client. Portfolio management services will be carried out by Decisive only based on a specific portfolio management contract and in relation to a specific (custody) account.
Investment decisions are carried out by Decisive. Decisive cannot guarantee any performance and investment decisions may prove to be wrong in hindsight. The client therefore carries the risk of misjudgements by Decisive.
4.4 Acquisition and Disposal of financial instruments
Decisive offers its client financial instruments (in particular, collective investment schemes with private equity exposure) to invest in. Such offer never amounts to a personal recommendation (if not agreed in writing to the contrary).
Offers are made without any specific client contract, solely based on the General Terms and Conditions of Decisive.
4.5 Wealth planning services
Decisive offers wealth planning services for high-net-worth individuals and families. In particular, wealth structuring, strategic and tactical asset allocation as well as consolidated reporting and performance monitoring are provided. Further Decisive supports with specific projects.
Wealth planning services are not related to specific financial instruments and therefore not within the scope of FinSA.
5. Financial instruments
Financial services provided by Decisive consider a broad product universe of own and third party products, such as:
- Shares/units of collective investment schemes
- Structured products
- Money market instruments
- Private equity (participations in partnerships, collective investment schemes, contractual structures etc.)
- Exchange and OTC traded derivatives.
The brochure “Risks Involved in Trading financial Instruments” of the Swiss Bankers Association (SBA) contains general information on typical financial services and on the characteristics and risks of financial instruments and is available on the website of the Swiss Bankers Association (www.swissbanking.org/en/downloads).
6. Costs and third party benefits
The financial services Decisive provides are subject to fees. Detailed overview is available in the relevant fee schedule as provided to the clients.
In principle Decisive will not receive benefits (e.g. retrocessions, kickbacks, finder's fees, etc.; “Compensation”) from third parties (banks, fund companies, issuers, etc.). Should Decisive nevertheless receive Compensation in a specific instance, the client will be entitled to claim such Compensation. Differing agreements between the client and Decisive shall remain reserved.
7. Conflicts of Interests
Conflicts of interest within the meaning of the FinSA exist if Decisive:
- in breach of the principle of good faith and to the detriment of clients, can achieve a financial advantage for themselves or avoid a financial loss;
- has an interest in the outcome of a financial service provided to clients which is contrary to that of the clients;
- has a financial or other incentive, when providing financial services, to place the interests of certain clients above the interests of other clients;
- in breach of the principle of good faith, receives from a third party an incentive in the form of financial or non-financial benefits or services in relation to a financial service provided to the client.
In order to identify conflicts of interest and to prevent these from having a detrimental effect on the client, Decisive has issued internal directives and namely taken the following organizational precautions:
- Decisive has established an internal control function that continuously monitors its investment and employee transactions as well as compliance with market conduct rules. Through effective control and sanction measures, Decisive can thus avoid conflicts of interest.
- Decisive obliges their employees to disclose mandates that may lead to a conflict of interest.
- Decisive regularly trains employees and ensures that they have the necessary expertise.
- Decisive consults with and obtain the approval of the internal control function in the event matters may involve a conflict of interest.
8. Swiss Ombudsman
Decisive constantly endeavors to improve its services. If, despite these efforts a client has a complaint and a mutual solution cannot be found, the client may initiate a mediation procedure through the ombudsman’s office. The procedure is free of charge and confidential. Decisive is affiliated to the Swiss Ombudsman Service.
OFS Ombud Finance Suisse
Association Suisse des
Gestionnaires de Fortune | ASG
Rue de Chantepoulet 12
Tél. +41 22 347 62 40